Graduate at work has been looking for a new place to rent and has just told the place He’s interested in will mean signing up to a 3 year tenancy…

I’ve not rented for a while, but that sounds quite long to me… or am I just out of touch?

Apparently there’s a “6 month break clause” but that could mean all sorts of things

He’s not stupid, He’s asked to see a draft of the agreement and they’ve suddenly gone a bit quiet on him…

Reckon he should follow up or just look elsewhere?

6 month break clause (should) means after 6 months he can give notice (2 weeks) and the landlord can give notice (4 weeks) but they don’t need to renew contracts for 3 years, therefore saving money.

(England, not London)Six months is normal round here, sometimes 12, with letting agent charging £££ to renew every six months. There are legal reasons why you don’t see them shorter.

Sounds a bit dicey, especially as graduates tend to move jobs and towns fairly often. How will he feel in 2 years time when he needs to move and he’s got a year’s contract to run?

Sounds iffy.

I have a draft tenancy with me when I show folk round for them to see what they are signing up to. What is there to hide?

He should run a mile.

Contracts I’ve been on have been either 6 months, which then changes to a standard rolling contract (no re-signing required, 4-6 weeks notice). Or 1 year fixed (may require re-signing fees).

He can get out of the contract after 6 months, that’s the point of the break clause.

I currently have a tenant on a 12 months contract with a break clause after 6 months. I would go for longer but the letting agency is screwing me over. Your Move basically won’t let me put the tenant on a rolling contract. and insist on 6 or 12 monthly contracts, so i insist on the longest i can get but also giving the tenant the option of getting out of it at some point.

Next tenant i will not be using a letting agency, apart from to find and vet the tenant.

Sounds good to me. Fixed price for 3 years (check if there is a year on year rent increase at RPI or if it is fixed price for 3 years).
The break clause is the key element. Means either party can break the agreement (with notice) after 6 months.
It’s been 6 years since I worked in that industry but I don’t think there’s anything to worry about.

12 months is the norm round our way. Some estate agents will charge to renew a 6 month one but if you advise you’d take your tenant elsewhere they normally agree it’s now free. For a three year one I’d say no thanks and look elsewhere as a tenant that is.

Genuine question – what is the point in a 12 month contract with a break clause after 6 months (or whatever the figures might be)? Why not just have a 6 month contract?

I have just signed 12 months in London, with mutual break clause.

I have to pay every time the contract is renewed. I’d rather pay every 12 months rather than every 6! My tenant also has to pay the letting agency. 😈

OK, I assumed a contract just rolled on month by month even after the 12 month initial period (like a phone contract)

Letting agant in dodgy practice shocker.

This is in Newbury, looking at a flat for him to share with another Grad’.

Neither of us had come across an agreement longer than 18 months before…

Seemed odd given the location and type of property to expect a three year commitment from prospective tenants but if it’s simply so the letting agents can reduce their overheads, and He’s not going to get shafted with costs if he moves after say 2 years then fair enough….

if it’s simply so the letting agents can reduce their overheads, and He’s not going to get shafted with costs if he moves after say 2 years then fair enough….

Let’s see if they produce a contract that says that. I’m surprised that a letting agent would do anything that reduced opportunities to bill the tenant and the landlord huge amounts for a bit of paperwork.

Sounds good to me. Fixed price for 3 years (check if there is a year on year rent increase at RPI or if it is fixed price for 3 years).

That’s precisely what they’re proposing apparently, an RPI linked annual rent increase written into the contract, details of the break clause are still TBC, He requested them this moring and he’s still had nowt, if its a “Standard” contract why would it take them any time at all to provide a draft?

Maybe the Landlord sets his own contracts and the letting agent just find the tenant for him/her.

I wouldn’t expect a 3 year contract from a letting agent when they can force a charge on you every 6 months if they want.

He requested them this moring and he’s still had nowt, if its a “Standard” contract why would it take them any time at all to provide a draft?

Maybe the letting agent is busy with other viewings/maintenance/inspections etc. Fair enough if they are sat in an empty office with no one coming in the door they can hop on their PC and email it, but does everything really need to be instant?

Never thought I’d defend a letting agent.

The 12 month thing is so that everyone can get some extra fees after 12 months and if the rental market picks up, the landlord can try to get a higher rental income.
RPI clause is fairly standard and normally the minimum an agent will go for (they get a renewal fee and often more commission on an increase in fees).
After 12 months, if no-one negotiates a new contract, it enters a “periodic” term where everything stays the same and you have a rolling one month contract with one month’s notice period.

Drafts can sometimes take a while to do as it depends how busy the agents are and these things normally have to be checked by someone senior than the admin person who fills in the gaps.

Maybe the letting agent is busy with other viewings/maintenance/inspections etc. Fair enough if they are sat in an empty office with no one coming in the door they can hop on their PC and email it, but does everything really need to be instant?

Depends doesn’t it, they’re asking him to pay some sort of “admin fee’s” already, and dangling the “in order to secure the property” line, up to now their comm’s have been quick, and they’ve been able to relay all sorts of information on the agreement, but only verbally….
So He’s not had much in writing regarding the T&C’s of an agreement, which they expect him to start laying out money against?

He’s actually in no rush, but their sudden change in response time once draft Doc’s were requested has made him a little bit uneasy…