When it comes to property rental, the length of a tenancy agreement has always caused debate. What is the ideal length? Who should decide the length?
The most common type of tenancy in England is an assured shorthold tenancy (AST). These tenancies usually begin as fixed-term tenancies where the duration is defined from the outset, typically anywhere between 6 months to three years (but can be up to seven years) as mutually agreed between the landlord and tenant. The problem is tenants want both security but also flexibility. It is often difficult to have both! At JDG, the majority of our agreements are between 6-12 months. After this, it becomes a periodic tenancy. Periodic tenancies do not have a fixed end date but continue on a month by month basis until ended by either the landlord or the tenant.
Tenants have their own ideas as to what is the length. Our research team decided to find out what their personal preference actually is. It does vary by both age and marital / family status.
- For renters aged over 45, the ideal lease length for most is 24 months plus. The actual lease length is most often 6 to 12 months (61%).
- 18 to 44-year-olds ideal lease length is 6 to 12 months which 68% of tenants do have.
- Families prefer more stability, perhaps reflecting a commitment to local schools and community. 45% of families ideal lease length is 24 months plus, in reality, only 23% of families have this.
- Generally, all the other categories prefer a lease length of 12 months or under which most do have. However, 34% of singles and 33% of couples prefer 24 months plus.
If you are thinking of investing in property, infomation like this is worth consideration. At JDG we have found families and older people do tend to stay considerably longer. We have had some tenants for over 10 years!
If you would like to talk about your ideal tenant and investing in the Lancaster or Morecambe property market, please get in touch. At JDG we are here to help.
Thanks for reading
Josh