Choosing the right type of tenancy is a crucial decision for both landlords and tenants. Each option offers unique advantages, so it’s important to understand how they align with your needs. With the Renters’ Rights Bill expected to have been passed by Autumn 2025, the changes this will make to tenancies may also have an affect on your choice. Whether you're seeking stability, flexibility, or a mix of both, here's a breakdown of the benefits of long-term fixed, short-term fixed, and rolling tenancies to hopefully help you make up your mind.
Long-Term Fixed Tenancy
A long-term fixed tenancy is generally defined as one lasting longer than 12 months. The tenancy will continue until the end of the fixed-term agreement, unless the landlord and tenant come to a mutual decision to end it early, or in certain circumstances the landlord is able to issue a Section 8 notice. Here's why a long-term tenancy is a great option:
🔑 Increased Security: Both landlords and tenants enjoy the peace of mind that comes with a secure long-term agreement.
🔑 Consistent Income for Landlords: Guaranteed rental income over a longer period reduces financial uncertainty.
🔑 Home Sweet Home: Tenants often take greater care of a long-term let, as they turn it into their home.
🔑 Strong Relationships: Longer agreements tend to foster a more positive relationships between landlords and tenants.
🔑 Cost Efficiency: No void periods mean reduced costs for both parties.
🔑 Mental Health Boost for Tenants: Stability provides reassurance, contributing to better mental well-being. A happy tenant should = a happy landlord
If it goes ahead in its current form, once the Renters’ Rights Bill has been passed, fixed term tenancies and Section 21 notices will cease to exist. Therefore, if you’re looking to implement a new AST it may be worth thinking about if you would prefer the fixed-term to end before the supposed Bill implementation date to allow you time to use a Section 21 notice (otherwise known as a no fault eviction), to give you the option to end the tenancy if necessary for whatever reason.
Short-Term Fixed Tenancy
Short-term fixed tenancies are quite simply tenancy agreements that last for a shorter period than the usual12-months and will continue until the fixed-term agreement comes to end. Like long-term tenancies they can be forfeited early if both parties decide mutually to do so, or in certain circumstances the landlord is able to issue a Section 8 notice. Here’s how a short-term fixed tenancy could work for you:
🔑 Flexibility: Increased flexibility for both landlords and tenants.
🔑 Freedom to Move: Perfect for tenants in transition, such as those relocating or waiting for renovations to be completed on their own homes.
🔑 Agreement Terms: Due to the potential higher turn-over, landlords are able to adjust rental terms for a new set of tenants quickly to reflect market changes or personal circumstances.
🔑 Opportunity to Test Compatibility: Both parties can determine if they’re a good fit before committing to a longer agreement.
🔑 Marginally Higher Rent: Landlords may be able to charge slightly higher rents for short-term agreements.
🔑 Lower Wear and Tear Costs: Shorter stays often result in less property wear and tear.
As the Renters’ Rights Bill becomes a reality, we expect to see more short-term fixed tenancies to give landlords the option of serving Section-21 notices before they become outlawed. However, the Renters’ Rights Bill will be introducing more reasons to allow a Section 8 notice to be used. So, although it may feel like a big transition, landlords need to quickly adapt to the new way of letting, and not panic serve Section 21 notices where it’s not necessary.
Rolling/Periodic Tenancy
As the name suggests a rolling or periodic tenancy doesn’t have a fixed end date and continues typically on a month-to-month basis. Here's why it’s appealing:
🔑 Ultimate Flexibility: Ideal for both landlords and tenants who want the freedom to adjust arrangements as needed.
🔑 Less Administration: Avoids the hassle of creating a new agreement while maintaining continuity.
🔑 No Surprises: All terms from the previous agreement remain unless otherwise agreed.
🔑 Adjustable Rents: Landlords can still increase rents annually with proper notice.
🔑 Amendable Contracts: Changes can be made mid-tenancy if both parties agree.
🔑 Ease of Notice: For problem tenants, rolling agreements make it simpler to serve notice if necessary.
This will be the only type of tenancy in the private rented sector under the Renters’ Rights Bill and will all be on a month-to-month duration. Tenants will need to give 2 rental-months’ notice to end a tenancy, and landlords will need to use a valid Section 8 notice that has a variety of notice lengths depending on the ground(s) being used. Currently, most tenancies will transition to a periodic after the end of a fixed-term and continue on happily.
Which One is Right for You?
- Landlords: Consider your long-term goals and how much involvement you want in tenant turnover.
- Tenants: Think about your plans and how much stability or flexibility you need.
No matter your choice, communication and transparency between landlords and tenants are key to a successful tenancy. For tailored advice on your tenancy options, feel free to reach out to our expert team!
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