UK Landlord Forum / Life

Hi everyone.

I would be grateful if you could share your thoughts regarding the length of a tenancy agreement.

When our current tenants moved in we used a 6 month contract.  Now that the 6 months has elapsed, I was intending to simply let this run on an open ended basis.  However, the tenants have asked if we could put in place a 3 year agreement.
The tenants have paid their rent on time, and appear to be keeping the property in good order.

My main question is: What are the pros and cons ?

Thanks in advance.

I suppose they want security but even on a 12 month agreement I would put a mutual break clause in there. Are you including a provision for increasing the rent as a lot can happen in three years? You really don't get the additional security as the issue I see with agreements like this is that even without a break clause a tenant can up and leave and all a landlord can really do is try to replace them as chasing tenants who haven't paid (and want to avoid paying) is a thankless task.If you don't fancy it but don't want to upset them simply say that your mortgage doesn't allow you to enter into tenancies for longer than 12 months at a time. 

Kindly decline.  Explain that you let all of your tenancies go to SPT, always have, always will.  Tell them that you have no intention of selling and they're welcome to stay for 3 years.  They won't leave as they like the house.   They won't leave if you don't give a 3 year tenancy as they won't get one with anyone else.  SPT gives you more control to evict if necessary.

I have to agree with riptide comment leave it as a spt otherwise it can cause problems

Just to echo the previous comments... politely decline their request. If they want security of tenure then I would personally consider a 12 month fixed term - but, like others, I prefer to let all tenancies go to SPT. As I let out multiple properties my Tenants know I do this seriously and am unlikely to change heart and sell-up. If you are a Landlord with a single property it's entirely feasible that they may be worried. Still, don't even contemplate the idea... I don't think you need a list of pros and cons, you know it's not a good idea, you're just looking for a bit of validation, which you have received. Good luck.