Which type of agreement/tenancy do I need?

This sounds like a very unusual arrangement and one to be wary of. "Friends" make the worst tenants!

It is correct that an AST is designed for a permanent occupier as the tenant's home. However, if you are uncertain about drafting a common law tenancy it is something a lawyer or competent agent should do.

I have been thinking of the clauses I would put in and there's so many things I'd want to include in this case.

As the agreement is unuual, maybe the tenant would pay the legal costs?

Would they be paying rent even when they're not there?

Would they be entitled to exclusive possession?

Do they think they can sublet and create a rent to rent arrangement?

My mind is going in all sorts of directions, most of which would have adverse ramifications for you as LL.

if they only want to be in UK some of the time, why rent full time, there's hotels and AirBnB for shorter stays.

The word 'friends' is what concerns me here. The worst type of tenant (in my opinion). If this is a business transaction who has put the theory in your mind this should be anything other than a normal straight forward tenancy like it would be if you letting your property to new tenants. Do yourself a favour....let them rent somewhere else and you let your property to a new tenant who you have no connection with.

Doesn't have to be their main property for you to issue an AST. Must be a minimum of 6 months and ALL the correct paperwork in place and delivered and receipted.

If they are not staying in the property for more than 28 days at a time then you could do it as a holiday rental and they have no rights to stay more than each period that is agreed to. You would be liable for ALL utilities (which you recharge either at cost or whatever you want) and would have to likely get the property business rated and insured as a holiday let.

Would they be paying for times when they are not in residence? If so, then unlikely you could rent out as a holiday let.

If not, then you could let to other people BUT your friends couldn't leave any possessions there. Or you could charge a higher "holiday" rental to cover non-use and the standing charges and business rates.

You can issue an AST, it just means that some of the tenancy legal protections might not apply. I rented a second home for work on an AST

Reply to the comment left by Graham Bowcock at 29/08/2023 - 11:55
Please email your local MP & M Gove to say you will not be voting Conservative due to their anti Lanlord policies
michael.gove.mp@parliament.uk

To be safe you would need to use an AST. Be prepared to lose the friend though.

Reply to the comment left by Russell Cartner at 30/08/2023 - 10:37
How would that help the person asking the question?

Reply to the comment left by David at 30/08/2023 - 12:49
An AST may not be appropriate. The owner should provide full facts to a legal adviser or experienceed chartered surveyor and get an agreement drawn up reflecting what is going to happen.

Besides the issue with the occupants the owner has to consider mortgage requirements and insurance.

Agree about losing the friend, though!

Reply to the comment left by Graham Bowcock at 30/08/2023 - 13:51
It's too risky not to use an AST agreement plus all attendant requirements. I'm not clear that a court would automatically consider a non-uk principal address as qualifying for a non-assured tenancy, particularly as time passes and the UK tenancy gets longer. Even if they did, its possible that the tenants circumstances could change. They could lose/sell their foreign residence, or decide the UK move is permanent. At that moment, the status of any common law tenancy would likely change to become an AST.

In any case, the actual tenancy type that an occupant has depends on the circumstances, not the paperwork. Therefore if the tenancy is non-assured due to it not being the tenants principal home, it wouldn't matter that an AST template was used as the facts of the case would still determine the course of action.