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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?
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.
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
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Ross Barnett - Property Accountant
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?
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
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?
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.
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.
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
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