UK Landlord Forum / Life

I agreed to let my property ( in my garden) to a lady who wanted to run it as an airbnb. I agreed  and gave her a 6 months AST which I would renew if everything was satisfactory. When the 6 months expired I realised that AST was not appropriate as she did not live there. I said I would renew the agreement but I wanted to treat it as a rent to rent  or a commercial situation. I carried on taking the rent after the end of the contract as she had bookings and I had no reason to think that another contract would be a problem. Four months later we still haven't come to an agreement as she insists on staying with the AST. She is threatening me with a solicitor - not sure on what grounds. I am not sure what to do - not sure if I can terminate the agreement

While the agreement isn't an AST, for the reason you have described, it doesn't mean the rest of the terms aren't valid.
What does the agreement say about ending it?
Is the agreement unsatisfactory other than in its name?

Why not simply increase the rent to cover the additional complication caused by the tenants unwillingness to resolve a serious issue.

You might want some proper advice, but if the tenant isn't living there, you should be able to simply re-take possession.
You'd probably be in breach of the tenancy agreement, because that's still a valid document, but it might bring the tenant "to the table".

Most of the terms and conditions of an AST are fine but I needed to add a few more. The original AST was for 6 months but she is claiming that it still stands as she has been paying rent ( which I think might be true but its still the wrong agreement. )The original notice period was one month. She did quite a few renovations at her own cost and they were done to a high standard- I don't really understand what her problem is and haven't been able to get her to come to a meeting to discuss. I am now wondering if its time to call it a day but am not sure where I stand

I have worked out how to reply to the post!!

It can't be an AST, but if it's a commercial agreement it probably works month to month while she pays rent until you terminate it. There's nothing that changes the original notice period - unless the wording of the agreement is such that it somehow isn't valid any longer.
The tenancy doesn't go periodic, because it's not an assured tenancy, so it's just an at will commercial tenancy - I'm not sure why the tenant doesn't want to protect her business, because it's currently a month away from being brought to an end.

she says I can't use a commercial agreement as I don't have permission to run the property as a commercial business. We used it as an artist studio and business for many years before deciding to let it without any problems. She doesn't like the rent to rent agreement. As you say she is behaving very oddly. Am at my wits end !!

All agreements can be terminated... it might take time, be frustrating and even costly... but the tail is wagging the dog here and unless you tell us you're happy to be wagged, start the process to get shot of this headache. Yeah, there well may be fall-out... but it'd be a matter of principle to me that a Tenant isn't calling the shots or holding some threat over me.

Quote from: karslake on September 08, 2023, 07:28:56 AMshe says I can't use a commercial agreement as I don't have permission to run the property as a commercial business.

She's talking nonsense.

If the use of the property isn't lawful, her business is done because you'd have to terminate the arrangement.

Send her a month's notice and then lock her out.

If you want to be really petty, stick the notice on the front door so her arriving guests see it and replace it every time she removes it.

 Thanks to the people who have helped.I have had to start a new thread as I couldn't find a way to make another post on my first one. I now understand that the original AST still stands even though it was not appropriate and there is no length of tenancy stated .Potentially it could go on forever if the tenant isn't willing to leave. The only way to bring it to a head is to issue a section 21. Am I right ?

Not really, you can't issue a section 21 for a tenancy that isn't an assured tenancy. But issuing a notice which complies with the terms of the contract will do even if it uses the section 21 form. Because, as with your tenancy, what the labels and document say don't really matter, what's important are the facts of the situation.

And an AST with no duration is completely useless, it's an essential element of any lease that the duration is known to both the landlord and tenant. So it's possible the entire document is void.

I thought of something else- the AST was with  xxx trading as xx- apparently ASTs  are not valid if issued to a business. Will this make a difference ?

I didn't mean that the original AST had no duration- it was for 6 months. What I meant was the current situation does not have an agreed timescale.

Quote from: karslake on September 09, 2023, 09:02:41 AMI thought of something else- the AST was with  xxx trading as xx- apparently ASTs  are not valid if issued to a business. Will this make a difference ?

It's can't be an AST because the tenant doesn't live there.
It can't be an AST because a company  can't live anywhere.

But, no it doesn't make any difference because it can't be less of an AST than not possibly being one.

Essentially that means that a number of elements of the contract are likely to be void, and a number of things implicit in an AST, such as it continuing as a periodic contract if the agreement doesn't provide for that, aren't relevant.

I'm not sure what else anyone can help with, there's some kind of agreement to use the property because the "tenant" is using it as an AirBnB and paying you rent, but it's not an AST and you simply now need to decide what you want to do about that.
If your requirement is a more appropriate agreement and the "tenant" won't agree to that, there doesn't seem to be a compromise.
So I'd serve notice and, when it expires, change the locks and compel the tenant to make a new agreement.

Hi. May i ask what is the reason you are wanting to change the contract . Once i know what you are trying to achieve,  il give you advice.

Quote from: Harry01 on September 11, 2023, 05:20:21 AM
May i ask what is the reason you are wanting to change the contract . Once i know what you are trying to achieve,  il give you advice.

The OP gives exactly that information in their first post:

Quote from: karslake on September 07, 2023, 01:10:58 PM
I agreed to let my property ( in my garden) to a lady who wanted to run it as an airbnb. I agreed  and gave her a 6 months AST which I would renew if everything was satisfactory. When the 6 months expired I realised that AST was not appropriate as she did not live there. I said I would renew the agreement but I wanted to treat it as a rent to rent  or a commercial situation.

If there is any rent review clause in the tenancy agreement,  you may want to exercise that.  You may also serve one month notice to quit as reserved in your agreement, since legally its not an ast.
If tenant do not end the tenancy,  then strictly speaking you will need to apply to the courts to end it.

Why would you need to apply to the courts to end the tenancy?
It's not a residential tenancy.