Pros and Cons for Landlords
Long-term lets have a number of advantages for landlords:
Once you grant a long-term let to a tenant you will hopefully have a guaranteed income for the entire length of the let.
A tenant on a long-term let, rather than the landlord, is responsible for the Council Tax and utility bills.
Long-term lets generally involve less work than short-term lets. For example, tenants are normally responsible for cleaning, garden and minor maintenance.
It’s often not realised that one of the advantages of long-term lets is that it is easier and cheaper to get a mortgage on the property than for other types of letting.
Long-term lets, however, can offer some drawbacks for landlords:
Long-term lets involve landlords with more legal obligations.
With a long-term let, so long as the tenant pays the rent and abides by the tenancy, you cannot get your property back until the tenancy ends.
Tenants have a right of occupancy with a long-term let under an AST. It can be difficult to evict them except for specific reasons.
With a long-term let, the landlord remains responsible for most maintenance.
Long-term lets do not usually earn the highest rents nor offer the highest lettings yields. A short-term let will likely make more money.