Periodic contracts – financial nightmare for landlords?

Periodic contracts – financial nightmare for landlords?

9:01 AM, 16th January 2025, About 6 days ago 51

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With the new Renters Reform Bill are you concerned about the move to periodic contracts?

We bought our flat in 2007, just before the crash. It is still in negative equity and will remain so for the foreseeable future. We bought a buy to let with the aim of topping up our pension. It has been and continues to be a financial drain and we are in a negative situation every month due to the high interest rates.

We are now retired, and due to the slow market, we have been unable to sell our flat. Periodic contracts are a huge worry for us and will cause us extra burden financially. As we all know the cost of finding new tenants and drawing up contracts is expensive.

A 12-month fixed-term contract in the first year gives us peace of mind. The move to periodic is so restrictive and could incur extra expense.

We have always been very caring landlords and the happiness of our tenants is a priority. I always reply and sort out any problems immediately. My husband now has dementia, and we need to sell but can’t. The RRB is so restrictive, stating we can’t sell in the first year.

All we want is for fixed term contracts to be allowed in the first year of tenancy and then change to AST as we have always had.

How can we make our voices heard? Do other landlords agree?

What other investment is there where so many restrictions are placed on an asset that you own?

Landlords are constantly vilified but it is proven that so many landlords are like us. It’s a nightmare

Periodic contracts are a huge worry to us.

Karen


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Vibha Spal

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9:48 AM, 20th January 2025, About 2 days ago

Reply to the comment left by Clint at 18/01/2025 - 13:46
Yes, you are right, 6 months minimum is required. We can always ask tenants how long they wish to stay. Of course, not all of them say the truth. It is too much expecting landlords to keep paying for check in and check out, deposit registration and cleaning between tenancies. There is a lot of admin work to be carried out. The RRB may mean long voids period as my properties are mainly for students. If they decide to leave after 2 or 3 months, it will be empty for a long period. I am hoping to sell 3 properties to have some cash for the voids for other remaining properties, until the fixed rates completes.

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