Long-term renting is a new cool in London. Young professionals, students, and tenants hailing from the different walks of lives nowadays want to step into the premise with long term renting with a minimum period of 20 months renting contract.
Latest figures from Association of Residential Letting Agents (ARLA) clearly indicate that tenants are highly inclined towards long-term tenancies. Reason- by signing into long-term renting, they don’t have to bear the upheaval of regular moving that’s actually a nightmare for both working and non-working individuals.
Benefits attached with long-term renting policies
1) Low risk of void periods-
Landlords are clearly aware of the fact that lenders with certain contracted renting period will not leave the home before the end of tenancy date. It means that they’re gonna dwell in their property at least for 20 months. And, before the ending date of renting contract will fall, lenders will find other tenants. So there would be almost zero chances of void periods.
2) Reliable leaseholder-
Long term renting builds up a good relationship between homeowner and tenant as they stay under one roof together. Regular interaction, occasional meetings or shared greetings makes a good bond with tenants. So the label of “Stranger” on tenants will no longer be applicable.
3) A good control over falling rents-
A long-term tenant gives attractive rates in upholding the impulsive rent falls in the market when first time buyers return a general expansion in the mortgage that may put a pressure on rents. So, it’s a good time for landlords to put protracted contract in place. Previously, landlords were reluctant to use longer renting contracts because they think that selling property with tenant will come up with a lot of hardships but now, with so many buy-to-let investors taking property with tenants, landlords have overcome with this issue.
4) Transparent lease contract-
If the tendency agreement is noticeably listing out all the rights and responsibilities of both parties a smooth occupancy can turn out. A good state of repair property will ensure that the deposit amount will unquestionably be returned with the termination of tenancy and it will be secure in all the circumstances.
5) Responsibilities carried by landlord and tenant-
A landlord is liable to treat the tenant fairly and must be given at least 24 hours of prior notice before visiting at a reasonable time of day excluding the dire emergency. Tenant is also responsible to take care of the property in a good way. He must clear off the agreed rent, even if the maintenance is due or a dispute with the landlord is resting on. Also, paying the other charges is also mandatory like- landlord including the council tax or utility bills. A property should never be sublet without the written consent/permission of landlord. If any of the responsibilities are not made, landlord reserves all the right to take legal action to evict.
More benefits with long-term renting
Long-term renting for two or more years appears to be useful if a tenant is persistently confident to live in a new house. Perhaps, the major issue is that, it’ll impinge on the flexibility to leave the premise without even clearing the lease per annum if things don’t go in a good way. Conversely, the good thing is that, if landlord wilfully raises the rent, he will have to wait for 2 years.