If you are renting a buy to let property within Coventry, it helps to know about the kinds of tenancy agreements you can set up. There are multiple different kinds of tenancy agreements that landlords can hold with their tenants. Each depend on both the living situation and the kind of tenant that has applied for the property.
Assured shorthold tenancy
An AST agreement is the most common form of tenancy agreement. This covers scenarios where a buy to let property is being rented out that the landlord will not also inhabit. The tenancy can be for an individual or multiple people such as students, but when renting individual rooms an ‘AST – Room Only’ agreement is usually more suitable. Properties covered under this tenancy can include both houses and flats and most agreements are fixed term. Meaning the tenant has a set amount of time secured at the property. The deposit made on accommodation with this kind of tenancy must be put into a protection scheme by the landlord, and the agreement becomes a rolling monthly payment unless another deal is signed after the fixed term has ended.
This kind of tenancy is used much less than Assured Shorthold Tenancy. This is because it only applies to living situations where the rent is under £250 per year, or that the property is not the tenants main living accommodation. They can also be used for agreements where the landlord is living in the same property but they and the tenant do not share facilities. A tenancy of this kind does not require the landlord to put a protection scheme on the tenant’s deposit, and they are able to end the tenancy as they wish. However, as long as all contractual terms are followed, the tenant does have the right to inhabit the property until the end of their agreed stay. Notice for the end of tenancy must be given.
In the event that the tenant is living within the same space as the landlord and sharing facilities such as a bathroom, kitchen and living space then an Excluded Tenancy agreement is used. This covers circumstances where the tenant is using a room within the landlords home. This kind of tenancy does not come with the same kind of protection or rights as other agreements, such as a AST tenancy. Eviction for the tenant can be done without notice or a formal court order as the agreement falls outside of eviction protection guidelines. This is as long as all terms of the tenancy are met. A deposit on this kind of property does not have to be protected by the landlord.
For many renting agreements, the tenant is not an individual but in fact a business or organisation. This kind of agreement allows a company to use a property for business use. Under this kind of agreement all people using the property must be involved with the company of the tenancy. Eviction notice and deposit protection are different to residential tenancies in that the end to the tenancy must be announced through different means, but notice must still be given. The agreements are usually monthly rolling tenancies, but the deposit on the property does not have to be protected by the landlord.
For any further information, be sure to speak to reputable letting agents in Coventry to get the correct advice.