New rental rules and fixed term tenancy question

[jack2016]

Hi with the new rental rules, is it possible to rent a property for say 9 months and 9 months only, and take it back for 3 months over the summer, and rinse repeat?

Thanks

[Keys]

Depends upon who owns it.

[Rosco]

Depends upon who owns it.

I'm presuming this is a holiday home.

If so, is wanting to use the property as a holiday home over summer a reason you can give to cease the tenancy?

This presumably wouldn't be the owners main place of residence.

If this isn't a valid reason (which I would hope it isn't), then does it matter who owns it?

Ross

[jack2016]

(under new rules)

if there is a fixed term tenancy, then i would have thought the word fixed term means the tenancy has an end date.

so under the new rules, there is no such thing as a fixed term tenancy and the tenant can stay as long as they like?

[Bob Kane]

Should be no problem doing this.
Rent it for 9 months then terminate as you want to change its use to PPOR.
Revert to a rental after the summer 3 months.
Repeat each year.

[hawkeye]

If it is a student town it would be a win win!

[Keys]

If this isn't a valid reason (which I would hope it isn't), then does it matter who owns it?

Indeed it does. Family Trusts and Companies do not have family. Therefore the tenancy can not be terminated under that clause.

[Rosco]

Indeed it does. Family Trusts and Companies do not have family. Therefore the tenancy can not be terminated under that clause.

As I put in my comment, would this apply to holiday home? If they want to use it for 3 months which I presumed was for a holiday home, then can they use this clause as I'm guessing it won't be their main house.

Ross

[Bob Kane]

Indeed it does. Family Trusts and Companies do not have family. Therefore the tenancy can not be terminated under that clause.

I assume most rentals will be owned by trusts or companies.
Does this mean the TT won't accept the 'change of use' clause - family member moving in - ?
How would you remove a tenant if the property is owned by a trust or company?
Should we own all rentals in our own names?

[simongu]

Change of Use

Indeed it does. Family Trusts and Companies do not have family. Therefore the tenancy can not be terminated under that clause.

Hmm, but surely by definition a Family Trust has beneficiaries which will be family members. Hence the change of use would be from rental to use by a beneficiary of the trust?
I would (naively?) hope that this is the sort of detail that gets sorted out during drafting and submissions cycle

[cube]

My understanding was that the FTT changes to a Periodic at the end of the FT if nothing else happens (ie. notice of non-renewal not given and lease not renewed). If the lease ends and the correct notice is given, then the tenant moves out?

So, isn't the answer, yes, if you can find a tenant willing to take the 9 months lease?

[jack2016]

I would hope so

[flyernzl]

Under the proposals, the tenant would have the sole choice of accepting the fixed term termination date or staying on and allowing the tenancy to automatically become a periodic.
The landlord would have no say in the matter - the choice would entirely be up to the tenant, who could stay on forever if they choose to do so.

[Keys]

Under the proposals, the tenant would have the sole choice of accepting the fixed term termination date or staying on and allowing the tenancy to automatically become a periodic.

And I will be discussing, with the sitting tenant, the price variation policy our firm has on rent for fixed term contracts and periodic contracts.

[simongu]

And I will be discussing, with the sitting tenant, the price variation policy our firm has on rent for fixed term contracts and periodic contracts.

Out of curiosity only, are you Ok to share that policy and your reasoning for the variation? Up until now I havent thought about this as most of my tenants are very stable long term, but with this new proposal may have to reconsider