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Student landlords warned their existing contracts may not be accurate

student tenants pic

Student landlords have been warned their existing contracts won’t be entirely accurate once the Renters’ Rights Bill takes effect after the summer.

Property solicitor at JMW, David Smith, said they will auto convert to periodic tenancies around September.

“This will be problematic as lots of tenancies have already been signed as an AST so in a sense all these agreements are duff - you need to think about how it will impact your business.”

What are the options?

Smith explained that there are potentially some ways to get round the switch.

This may include offering room lets - although this can complicate the council tax situation - or by letting directly to parents with students as a permitted occupier, by providing a premium lease and charging a fee to grant a one-year tenancy and then renting the room for £1 a month.

There may also be the option of granting a tenancy for seven years with a break clause after one year.

However, he adds these options are high risk.

“The problem is, local housing authorities will be looking closely at this…it might be just better to cope with the reality of the situation.”

Under the Bill, Smith warns that landlords will need to be aware that students might use any form of medium to give notice to quit, such as WhatsApp.

He also flags up the issue of a single student being able to give notice under a periodic tenancy.

“If the group falls out or one person wants to leave, traditionally you would be approached by a parent, and you might get them to pay the rent anyway or just do a tenancy alteration - now that can’t happen.

“A single person will give you two months’ notice and if you choose to let the others stay, you’re forming a new agreement, or you might tell them all to leave and then you’ve got a vacant property.”

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Student landlords
renters rights bill

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