Fixed-term leases can be entered into for any term agreed between the landlord and the tenant to deal with their circumstances (up to seven years), and longer fixed conditions can often provide security for landlords and tenants. For landlords, a longer rent is a good indicator that there will be a constant flow of rents and a lower risk of draining the property. For a tenant, a long lease gives more time to move into the property. An AST may be terminated at the end of a fixed term or in accordance with a pre-negotiated break clause under the agreement and by both parties. A lessor must always provide a mandatory notification (a section 21 notification) to enter possession of the property and can apply for a court order. Currently, tenants must be given at least six months, which can only be served after the first four months of the lease expire. This replaces any notice that may be included in the lease itself and withdraws from the contract. However, if the tenant seriously violates the terms of the tenancy agreement (including rental arrears), the lessor can apply to the courts for a possession order, referring to one of the grounds of ownership contained in the Housing Act 1988 (as amended). On the other hand, a secure tenancy agreement provides tenants with much greater long-term rental security, since they can remain in a property until they decide to leave or take possession of the landlord for one of the reasons listed in the Housing Act 1988.
This usually requires waiting until a particular condition has arisen, allowing them to search for a property order, for example, tenants are behind on rent. Finally, keep in mind that as an investor and owner, you may run into other types of rentals, although they are all much rarer than the AST. This includes: If you violate the term of the lease, you are responsible for correcting it. If you are the tenant, this may mean that you are paying money to solve any problems caused by you or your guests. If you do not pay voluntarily to correct the offence, you may be prosecuted for damages caused by the offence or likely to be evicted by the owner. The basic principle behind an AST – and probably why it is called insured – is that it offers some security to the tenant, subject to certain restrictions. This means that the tenant, as long as he pays the rent and complies with the rental conditions, has the right to occupy the property for the agreed period – or «term,» as we know. The lessor`s obligations are defined by the conditions contained in the lease and by the specific laws for the location of the property. The landlord`s primary obligation is to allow the tenant to enjoy the property peacefully.
Finally, the lease should be signed and dated by all parties. Some, but not all owners, require that the bottom of each page be signed. Now, the standard rental period for landlords is 6 months, as it gives them the opportunity to repossess their property through section 21 after the lease expires.