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BearlyBegun

1Year Contract 6Month Break Vs 2Year Contract 1Yr Break

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Hi everyone,

I've been renting in london for the last 10years or so in various places - my lease is currently up and I'm looking for a new place again (my 4th in the last 5years).

I'm normally offered a 1 year contract with 6month break clause (which I thought not only standard for AST's but also that the 6month break was a legal requirement to protect the tenant in the event that the landlord fails to live up to requirements etc. - is it a legal req or not?)

In viewing now 2xEA's have told me when I've been looking at properties that they are 'currently' recommending tenants go for a 2year contract with a break clause after 1year. They give a variety of reasons (rent might not be reviewed for >1yr / more stability for landlord etc) but does anyone have any thoughts on why they are pushing this now?

Thanks for your thoughts

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In viewing now 2xEA's have told me when I've been looking at properties that they are 'currently' recommending tenants go for a 2year contract with a break clause after 1year. They give a variety of reasons (rent might not be reviewed for >1yr / more stability for landlord etc) but does anyone have any thoughts on why they are pushing this now?

I think one of the reasons would be because a lot of BTL landlords are basically crapping their pants, they are in NE (ha ha) and trying to get someone to cover the mortgage as they are also losing their jobs (who isnt nowadays) and cant afford the mortgage if they have a void, so u signing for longer gives them security of payments for a while.

Also, EA gets paid more for longer contract, e.g a 6 month contract where you then go rolling they prob get roughly one months rent as payment (ish), a 2 years contract they get more like 4 months rent before they send out their usual lies about you needing to pay to renew

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Thanks - yes I see why its attractive to the landlord, and sometimes the tenant too.

It doesnt bother me, I guess I'm just curious as they've never pushed for this before.

Also, EA gets paid more for longer contract,

Ah, I didnt realise this.

Its why I couldnt understand the EA angle - I thought their payment was pretty fixed regardless of term they secured, in which case it would have been much more in their interest to do 'the paperwork' and charge their fee as often as possible...your comment makes sense cheers

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Ah, I didnt realise this.

Its why I couldnt understand the EA angle - I thought their payment was pretty fixed regardless of term they secured, in which case it would have been much more in their interest to do 'the paperwork' and charge their fee as often as possible...your comment makes sense cheers

The only reason i know this is because my landlord is a bit dim (very nice but dim) we wanted a 12 month contract with a 6 month break, planned to stay longer than 6 months but the break was just in case the neighbours were idiots we could go somewhere else, i explained all this to him and while he was happy to do 6 months he wouldnt do 12 with a break (which is sort of the same thing so i couldnt understand) so i phoned him up and asked for a chat about it as i guessed we had our wires crossed.

Turned out for a 6 month contract the EA (andrews) wanted 1 months rent as payment (give or take a few extras) for a 12 month contract with 6 months break they wanted double that, but they wanted both up front and if we broke on 6 months it seemed like it was gonna be an effort to get his money back. So we signed a 6 via the EA and on the same day our another 6 from the end of the original with a clause that it didnt take effect unless we were still in the property after the original 6 expired (wasnt worth the paper it was written on but he really doesnt understand this stuff)

Edit to add, as the fee is a percentage of rent so to speak, they can get 4 months payment now of for example 1000 a month (and bank it), or 1 lot of 1000 and if rents go down, next bit is 900 so they are 100 down.

Edited by Rozza

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In viewing now 2xEA's have told me when I've been looking at properties that they are 'currently' recommending tenants go for a 2year contract with a break clause after 1year. They give a variety of reasons (rent might not be reviewed for >1yr / more stability for landlord etc) but does anyone have any thoughts on why they are pushing this now?

It's EAs trying to rip off landlords and tenants, and boost their own cash-flow.

The EAs generally take their commission up-front. So, if they're charging 15% + VAT (if rent is £1000 pcm - they'll skim £175 a month off). So, in the case of a 12 month tenancy, the EA will take 100% of the first 2 months rent. In the case of a 2 year tenancy, they'll end up taking 100% of the first 4 months rent. This is fantastic for cash-flow, especially if business is slowing down a bit. The really cheeky EAs (e.g. one whose name begins with 'Fox' and ends in 'tons') have a reputation for signing tenants up on 5 year ASTs and then, not content with waiting 12 months to take their fee which is 12 months rent, they simply send a bill to the LL for their whole 5 years of commission to be paid with 14 days.

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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