The Buy2Let Shop’s property investment seminars in London cover a wide range of topics for landlords. One subject that’s often hotly debated is tenant contract length. Is it better to offer a long-term contract, or a shorter-term agreement?
If you’ve recently invested in property in the UK, and you’re not sure what length of contract to offer your tenants, here’s a useful run-through to help you – outlining the advantages (and disadvantages) of each option.
Long-Term Tenant Contracts
A long-term contract is loosely defined as anything over two years; though some landlords believe it’s three years or over. There are a number of benefits to offering longer-term contracts, such as:
However, there are disadvantages to long-term contracts. For example, if your tenant behaves badly, it’s trickier to evict them. Additionally, your own circumstances may change – and you might not want to be committed to renting for an extended period of time.
Short-Term Tenant Contracts
Short-term tenant contracts tend to be anything from three months to a year – though again, the exact definition varies. These types of contracts can also be beneficial; for very different reasons. For example:
The main thing that puts landlords of short-term contracts is uncertainty. A higher turnaround of tenants means greater pressure to find new people to rent your property. It’s also harder to build good working relationships with short-term tenants, which might result in them having less respect for your property.
The Buy2Let Shop in Bromley
If you’re looking for buy-to-let property for sale, and you’re unsure about what sort of tenants you want to attract, get in touch with The Buy2Let Shop. We’re a team of property investment agents in London, with in-depth knowledge of the market. We have a large number of prime property investment opportunities, not available to the general public, which are suitable for both long- and short-term tenants.
If required, our team also offer assistance with buying a house at auction, and regularly hold property seminars, to extend your knowledge of the current market. If you’d like to find out more about The Buy2Let Shop’s services, simply visit our website today.