Just about to rent out property - nervous?

Hannaho

Hi! I've looked at the other threads on renting out, the new legislation, the recent happening with the AAA Bill. I haven;t rented out any property for a year, but building a business and the extra, albeit meagre cash, would come in handy. Good tenants on paper - relocation from New York, or so I have been told by agent, but I'm really nervous about it - my daughter will need the property in Sept 2019 for college. The potential tenant knows this, I've been completely upfront, and still wants to take it, but I'm nervous - what if he decides in Sept 2019 that he doesn't want to leave, or, even bigger, what if legislation comes in and states that a tenant has the right to stay in a property for six years even if the Landlord needs it/wants to sell. The other option is leaving it idle - or buying another premises for my business out of the proceeds - I would lose though as we spent a lot of money doing it up, but I wouldn't have to rent space for my business. The house is not suitable as business premises - middle of estate. Advice/comment would be really helpful. Tenant wants to move in on 1st Feb.

Samuel T. Cogley

The 6 year law is already in place. Even if it was not the current 4 year law would take us beyond 2019.

However I believe that need for a direct family member is still grounds for terminating the lease. Whether they leave or not is a different matter! Take proper advice or at least advice from other here with more knowledge of the RTA, by familiarity with it is passing at best and increasing that familiarity one of the reasons I'm here myself.

Graces7

Libertarian Kant wrote: »

The 6 year law is already in place. Even if it was not the current 4 year law would take us beyond 2019.

However I believe that need for a direct family member is still grounds for terminating the lease. Whether they leave or not is a different matter! Take proper advice or at least advice from other here with more knowledge of the RTA, by familiarity with it is passing at best and increasing that familiarity one of the reasons I'm here myself.

I have never heard of this? Can you please explain more?I am currently starting a 1 year fixed term lease but intend to go to Part 4 then.

Samuel T. Cogley

Graces7 wrote: »

I have never heard of this? Can you please explain more?I am currently starting a 1 year fixed term lease but intend to go to Part 4 then.

Part IV is now six years.

Part 4 tenancies and extension of period from 4 years to 6 years

37. (1) Section 28 of the Act of 2004 is amended in subsection (2) by substituting “6 years” for “4 years” in both places where it occurs.

(2) The provisions of the Act of 2004 referred to in column (2) of Part 1 of the Schedule are amended in the manner referred to in column (3) of that Part opposite the reference in column (2) to the provision concerned.

(3) This section applies to all tenancies created after the coming into operation of this section.

antoinolachtnai

I don't think you really have anything more to be concerned about than you would have had eight weeks ago.

There is a small chance that you won't be able to get your house back in a few years. But it is narrow enough, especially if you have a tenant with a job.

Owning property has risk whatever way you do it. For example, if you leave your property vacant, it is more likely to deteriorate or be damaged.

You have obviously gone to a lot of trouble and taken advice from professionals so I would be inclined to plough on. It won't make you rich but it might stop you becoming poor.

FishOnABike

Would using the rental income from this property to pay towards your daughter's rental costs in 2019 be an option?

I realise the after tax income may be less than will be needed to fully cover your daughter's rental costs in two years time but that may be the cost of certainty. To forego rental income for the next two years and be certain the property is there for your daughter in two years time or let it now and run thr risk of further changes to the law or tennant not wanting to leave and overholding and then not having the property available for your daughter when needed?

Graces7

Libertarian Kant wrote: »

Part IV is now six years.

Thank you; so my tenancy dated Jan is in that?

Baby01032012

Graces7 wrote: »

Thank you; so my tenancy dated Jan is in that?

Yes if you only started a tenancy then it is. If you started it before then it is still 4 years. Landlord can still give notice for selling for use of family member for renovation or change of use.