With first-time buyers prepared to save for more than five years to get on the housing ladder, opportunity knocks for landlords who make their properties available to home-sharers looking to reduce their living costs.
A study of 40,000 non-homeowners aged between 25 and 40 by mortgage lender Halifax revealed that they are prepared to save for an average of 5.35 years to put together a deposit on their first home.
Another analysis of official data by home loan broker the mortgage advice bureau shows the average age of a first-time buyer is now 37. This helps explain why the image of house-sharers is changing from that of students and recent graduates.
In fact, house-sharing in London is growing in popularity among working professionals who are unable to afford to rent a property alone or even with a partner.
Landlords who target this market most commonly let their property assets on an assured shorthold tenancy because such agreements cover the whole property, not individual tenants, and reduce administration costs.
However, most landlords with experience in the house-share market will be familiar with the not uncommon event of one of the households wishing to move out of the property before the tenancy comes to an end.
With the age profile of house-sharers rising, this is likely to be an increasingly common event for landlords to deal with. But it shouldn’t be a problem for landlords on top of their tenancy management responsibilities. After all, the outgoing tenant is only released from their obligations under the tenancy agreement if they find another suitable tenant to take their place.
To ensure the replacement tenant has the same rights to live in the property as the outgoing house sharer, landlords need to follow the correct change of tenancy procedure.
If you like a custom, completely personalised assured shorthold tenancy agreement, use the link below. It takes about 5 min to create and you will end up with an agreement, tailored to your specific property.
Alternatively, if you just want to download a generic change of tenancy agreement template, use the link below.
When a tenant informs you that they wish to leave a shared house before the end of the assured shorthold tenancy, presenting them with a change of tenant procedure will make clear their rights and responsibilities.
The document covers finding replacement tenants, and references and explains arrangements for paying a deposit for the room and how and when the rent should be paid.
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