AST for less than six months???

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AST for less than six months???

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mickeyreay

Posts: 2
Joined: 23/1/2005

AST for less than six months???

I am due to move into a property tommorow. I am a letting agent and I am renting this place for three months. The situation is mutually beneficial between landlord and I and I was under the impression that the minnimum period was 6 months, which is no good for either of us.

I called C******LAW (not swear word!) and put the dillemma to them and they afvised me that the law changed two years ago and the min period is now no longer six months.

I want to do three months and then let the agreement 'roll on' until either party serves notice.

The landlord's sisters friend who has a large portfolio (and claims to know everything about renting) says I'm a con man and i'm trying to rip this guy off. This is not the case and both me and landlord are taking advantage of a very mutially beneficial arrangement. Now the landlord doubts me and I have a whole house of new furniture coming tommorow.

I'd be the first to admit that I was suprised to hear it, but has anyone else?

Regards

Pee'd off agent.

By the way i'm a genuine professional agent who is the only NALS agent for miles and started my business cos 99% of letting agents I used for my own property were rubbish, so NO nasty messages from pee'd of tenants!!!!!!! After all, i'm on your side!

Report Abuse | Date 23/1/2005 7:39:06 PM

P.Pilcher

Posts: 102
Joined: 25/7/2003

RE: AST for less than six months??? (in reply to mickeyreay)

As I understand the law, you can draw up an AST for any period you like, and your tenant is contracturally bound to pay his rent for this period. If he decides to leave early you are obliged to use your "best endeavours" to find a replacement tenant, but if you cannot, the tenant is obliged to pay. However, should you require repossession for some reason other than your tenant contravening a term in the AST, then you cannot use the accelerated procedure for this purpose unless the AST is six months old. So, issue an AST for 4 months tenant is contracturally obliged to remain there and pay you 4 month's rent, but if you need your property back earlier and have served the required two months notice on the tenant, you cannot commence court action until 6 months from the grant of the AST.

P.P.

Report Abuse | Date 24/1/2005 3:10:55 PM

The Managing Agent

Posts: 8
Joined: 20/12/2004

RE: AST for less than six months??? (in reply to mickeyreay)

An AST can be drawn up for any period of time these days as long as both parties agree to the period. As P.Pilcher correctly states Section 21 of the Housing Act (the two month notice served by a landlord) can not expire until the end of the sixth month of a tenancy even if the initial fixed term was only three months. The Section 21 can be served at any time but must be;
(a) in the correct format - Section 21(1)(b) for a notice SERVED within the fixed term period of the agreement and Section 21 (4)(a) for a notice SERVED during a periodic agreement (ie after the initial fixed term has ended)
(b) expire on the day before a rent due date (ie if you pay your rent on 15th of the month the notice must expire on 14th.
(c) must be six months or more from the start of a tenancy

Although a tenancy can now be for a shorter length than six months, the landlord can not take possession proceedings under Section 21 until the six month anniversary. This has not changed.

So in answer to your comment "I want to do three months and then let the agreement 'roll on' until either party serves notice", that's fine but the Landlord just has to bear in mind he can serve notice at any time but that notice can't expire until the end of the sixth month, whereas the tenant can serve one month notice to expire at the end of the fixed term or at any time afterwards, unless there is a break clause in the agreement allowing notice before the end of the term.

Report Abuse | Date 27/1/2005 7:24:56 PM

mickeyreay

Posts: 2
Joined: 23/1/2005

RE: AST for less than six months??? (in reply to mickeyreay)

Thanks Gentlemen, I had thoughts along the lines of Mr Pilcher's comments. It is still a million miles away from what Compactlaw said

The outcome is that I lost the property and (on the intended day of moving in) had to cancel about £5K of new furniture that was supposed to be delivered. I am fuming at them. Words can't describe how much grief they are going to get from me!!!!

Report Abuse | Date 28/1/2005 7:59:34 AM

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