What is the meaning of a flexible tenancy, and how can it benefit landlord and tenants in London today? If you rent out a property in Hyde Park, Bayswater, Paddington or Chelsea, you may have heard about this type of tenancy agreement. Whether you are considering offering a flexible tenancy or you are simply expanding your market knowledge, here are the essential details and differences.
At Plaza Estates, we mostly offer tenancies on assured shorthold tenancies (ASTs), with some of our landlords agreeing for tenants to have break clauses after six months to give tenants greater flexibility. However, if you rent to council tenants you may wish to explore the option of a flexible tenancy. Read on to find out what it is and the rights it gives landlords and tenants.
What is a flexible tenancy?
Since 1st April 2012, local councils can use flexible tenancies to give social tenants many of the rights of a periodic secure tenancy, while offering landlords the option to end the tenancy at the end of the fixed term. Local councils only grant flexible tenancies under certain conditions as set out in the Localism Act 2011.
What are the main features of this tenancy?
The defining features that set it apart from a standard secure council tenancy include:
A 2-year or 5-year minimum duration
The agreement is only valid for this fixed period
The tenant has previously held an introductory tenancy, demoted tenancy or family intervention tenancy
When is a flexible tenancy used?
Local authorities use a 2- or 5-year flexible tenancy when they believe a long-term secure tenancy would be inappropriate. A reason such as antisocial behaviour in the past can cause this, but they can also use it to prevent under-occupied properties. Tenants can be moved to a smaller property at the end of the term, to maximise the accommodation on offer. Alternatively, the landlord can offer a new term or a secure tenancy.
How is a flexible tenancy different to a secure tenancy?
It’s actually a type of secure tenancy. The main difference is that the tenancy agreement ends when the specified period is up, while standard secure tenancies will typically grant a lifetime tenancy. The council will set the term, and tenants have 21 days to request a review of the duration. Most fixed terms continue for 5 years, but the council may grant 2 years – usually if the tenant has a record of antisocial behaviour or unpaid rent.
What rights do the tenant & landlord have?
Flexible fixed term tenancies aim to balance the rights of landlords and tenants. Tenants have most of the same rights as secure tenants during the validity period. For tenants who rent under a flexible tenancy, right to buy is still an option as it would be under other council tenancies.
Rights under a flexible tenancy
They also have the right to sublet rooms, though not the whole property, but they don’t have the right to make improvements. If they die, the tenancy can pass on to a live-in partner, or family member if mentioned in the agreement. In the event that the landlord applies to end the tenancy agreement, tenants also have the right to appeal prior to the court date. Here’s how that process works.
Breach of flexible tenancy terms
If flexible tenants breach the terms of the agreement, the landlord can to apply to their local county court for the tenancy to end when the fixed term expires. This could happen if the tenant breaches the agreement, falls into rent arrears or is involved in illegal behaviour. But the landlord must serve the correct written notices first.
Mutual benefits for landlords & tenants
All in all, the landlord can benefit from the security of guaranteed occupancy for a reasonable period of time. But there’s also the opportunity to end the arrangement if there are grounds to do so. Meanwhile, tenants feel more secure. Though as in any arrangement, there are pros and cons to consider before you decide what’s right for you.
Begin your journey with a free property valuation.
Get the facts and figures to make informed decisions.
Property Valuation
"*" indicates required fields
Got a question?
If you want to know more contact us,
and we’ll be happy to help you.
Contact Us
"*" indicates required fields
Share
Maurice Shasha
The Property Industry has always and continues to interest me, and after joining Plaza Estates in 2008 I have experienced a market which has taught me alot. In my role advising clients on their purchases (together with our sales teams), managing the refurbishments for them (together with our management and design team), preparing the property for rentals (together with our rentals teams) or sales and being responsible for the Companies digital marketing I have seen the market from various aspects. The market is always changing and it is essential we constantly adapt, which since Plaza Estates was established in 1972 is something the company has always done. We pride ourselves in the personal relationship and service we have and give all our clients and being part of a company which is "big enough to cope and small enough to care" is something I really enjoy.
If you want 5-star reviews and want to remove negative reviews from Google, contact me via my profile; my contact details are listed there.
SM
Dear Eitan
In this whole sorry saga, with headbutting, unproactive lawyers, and a comatose estate agent etc etc, you have been a beacon of light throughout. Efficient, professional and responsive. This would never have got done without you.
Thank you.
All the best.
Maurice Shasha
We have been using Plaza Estates for many years for all our property requirements (sales, letting and management) and are delighted with the results and service they constantly deliver and provide!
KS
I generally dealt with the Marble Arch branch most of the time, but I can also say that the Knightsbridge office was also exceptionally helpful and professional on the occasions I did deal with them. Plaza Estates in general are excellent.
YZ
Have interacted with Plaza Estates across a couple of sites and always been impressed. Maurice must be the hardest working, most dedicated, helpful and knowledgeable account manager for any company anywhere! A real asset to the team!
LI
I have been a client of Plaza Estates for over 30 years and received excellent service. Both Rodney on the rental side and Fiona in the property management area have been have been attentive and helpful and always willing to go the extra mile on the few occasions when there were problems.
SA
Hope both of you are doing well. I wanted to thank you for always being there for us and for addressing our concerns promptly; safe to say you have been the best agents I have had the pleasure of interacting with.
KR
We have owned our Flat since 2008, which we purchased through Plaza. Our relationship with Plaza goes back to 1982 when we purchased a nearby flat and Plaza have handled all our lettings since then. I would have no hesitation in recommending Plaza - they will find you a good tenant and ensure your ...
MS
Thank you again for all your advice and calm attitude and charm. Nobody could try harder than you, and for which, we really thank you and appreciate it all, not just now, but over the years.
Thanks again for everything!
LT
Thank you for your kind help and your advice, it's been precious!
