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ASTA or Licence


AlanB

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I am thinking of renting to students, 4 per house. Firstly should I use an Assured Shorthold Tenancy Agreement (ASTA) or a Licence agreement?

Also should I go for a whole house agreement or indivdual agreements? Has anyone any preferences or views to help me decide.

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I am thinking of renting to students, 4 per house. Firstly should I use an Assured Shorthold Tenancy Agreement (ASTA) or a Licence agreement?

Also should I go for a whole house agreement or indivdual agreements? Has anyone any preferences or views to help me decide.

No I will not be living there. I have looked up the differences between ASTA & Licence on the net but would like some views on the above questions.

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Hi Mate,

If you will get the same rent then do as one joint AST.

If you do it individually you will have to pay/sort out council tax/exemptions, pay all the energy bills and internet etc = hassle.

Also all tenants will be liable for the rent, so the reliable ones are likely to manage/keep the others in check.

You will have to do 4 times the amount of viewings for each room if they all leave at different times.

There are pluses of renting out per room though:

Usually can acheive much higer rent, often £300 per month more.

Often it is easier to find tenants and reduce voids

If a room is empty for a month, you still have 3 tenants income coming in, whereas if the whole house is empty then no income.

Caio!

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As you won't be living there licenses don't enter in to the equation. With consideration to replies already given, what is the connection between the 4 students. If they don't know each other you're unlikely to get them on a joint AST as there is joint & several liability, there're also added complications if one wants to leave. Joint or individual agreements each have merits and negatives. Base your choice on the tenants circumstances and your own criteria. Personally, I'd go for separate ASTs and get a guarantor per individual if bog-standard students ie just left school and first time from home etc.

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