A Landlord wishes to let his property but is often unaware of the legal implications of doing so. It must be emphasised that a tenancy agreement is a legally binding contract and that the Landlord must comply with all the covenants in that contract for the full term of the tenancy.
Brief details of the three most common are noted below:
Assured Shorthold Tenancy
This type of tenancy can be for any period desired by the two parties. At the end of the fixed period the tenancy will become periodic, continuing on a monthly basis, until either the tenant gives one month’s notice or the landlord gives two month’s notice. The landlord cannot regain possession of the property before the end of the first six-month’s. This type of tenancy also has the benefit of inclusion in a Tenant's Deposit protection scheme.
As created by the Housing Act 1988 as amended by the Housing Act 1996. This type of tenancy gives the tenant security of tenure even after the fixed period has expired, until either the landlord obtains a possession order based on one of the seventeen grounds of the Housing Act 1988 as amended by the Housing Act 1996 or the tenant gives one month’s notice termination of the tenancy.
A tenancy outside the security of the Housing Act 1988, the tenant being a limited company registered at Companies House and the occupation of the house usually being for employees of the company. The landlord may obtain a higher rent from a company but he should be aware that it could be used as a hotel; wear and tear may be excessive. The company has no security of tenure and must leave at the end of the fixed period, unless the tenancy is renewed.