Through this blog, you’ll gain a comprehensive understanding of the various types of tenancies available to you. From a licence to occupy and an assured shorthold tenancy, all the way through to a holiday let.
License to occupy.
A license to occupy is a type of tenancy agreement that does not grant a tenant any exclusive rights over the property. It allows the occupier to stay in the property for a specified period of time. But gives them no legal right to remain or demand payment from the landlord after their license has expired.
The main advantage of a licence to occupy is that it offers less protection to the tenant than an assured shorthold tenancy. This means that it is easier for the landlord to terminate the agreement if necessary. For example, if the tenant fails to pay rent or breaches any of the terms of the agreement, the landlord can terminate the licence to occupy relatively quickly and without needing a court order. The landlord simply needs to give notice and then, if necessary, can change the locks to the property.
Assured shorthold tenancy.
An Assured Shorthold Tenancy (AST) is a type of tenancy agreement that grants the tenant exclusive rights to occupy the property for a fixed period of time. The AST also gives the tenant more protection from eviction than a license to occupy does, as it requires the landlord to follow certain legal procedures before evicting a tenant.
If the tenant will have exclusive occupation of the property, then a tenancy is created, usually an assured shorthold tenancy (unless the rent is over £100k per annum or below £100 in London or £250 across the rest of the UK).
Irrespective of The landlord would have to follow proper routes to gain possession (serve notice, obtain an order for possession and potentially instruct county court bailiffs, unless there has been an agreed mutual surrender which you would hope possible in this situation. Even if there has been no written tenancy agreement and they pay rent, then they gain protection from the Housing act so proper routes still apply.
It is important to know that court will always look at any tenancy agreement if challenged.
What about a holiday let?
A holiday let is a type of rental agreement between a landlord and tenant which is typically used for short-term stays. It generally involves renting out an entire property – such as a house, apartment, or villa – for a specific amount of time, usually between one to two weeks.
When it comes to renting out your property on a short-term basis, there are certain rules and regulations that must be followed. Landlords should consider the differences between license to occupy, ASTs and holiday lets before deciding which type of rental agreement is best for their property. By understanding the various rights and obligations that come with each type of tenancy agreement, landlords can ensure they are protected from any potential legal issues that may arise in the future.
However, it’s important to note that while a licence to occupy offers less protection to the tenant, it also means that the landlord has less control over the property. The tenant is allowed to live in the property as their home, which means that they have certain rights such as the right to quiet enjoyment and the right to live in a property that is fit for habitation. This means that the landlord will still have to ensure that the property is maintained to a certain standard.
In summary, if you are a homeowner who is considering letting a property, it’s important to understand the legal implications of doing so and that you are aware of exactly what legal relationship is created.
Feel free to contact Woodstock Legal Services if you need any advice!