“Landlords Joint Tenants”

Sharing as Joint Tenants

Shared tenancy risk

Higher rents and fewer people buying property have led to increasing numbers of people, not just students and couples, choosing to share the cost of rental accommodation.  In other words, they become Landlords Joint Tenants.

From a Landlord’s perspective this should be welcomed.  When two or more people become liable to look after the property and pay the rent, the risk is halved.  A single Tenant losing their job could present a problem – but this can effectively be underwritten by allowing/encouraging a shared tenancy.

Although similar to renting to a couple, there are advantages to renting to people who may not be ‘romantically’ associated.   For example, a failing relationship could trigger the end of a tenancy, but this could not happen with two or more single people.  If one of them changed their plans, then it can be relatively simple to replace them with another co-tenant pleased to have found a more affordable alternative to renting alone.

Joint tenancy agreements and HMO regulations

We often prepare tenancy agreements which provide for each Tenant to be responsible for paying their share of the rent until they can be replaced by another co-tenant.  And should they fail to pay their share under a joint tenancy, then the remaining Tenant would assume liability.  This “peer pressure” can be an effective way of ensuring rent is paid reliably.

Sharing also increases the likelihood of renting faster.  Landlords can increase the pool of likely tenants at a time when the market is not necessarily saturated with prospective tenants.  This is achieved by making a property appeal to sharers as well as individuals, couples and families.  This can also have the effect of increasing the rent too, due to higher demand.

However, Landlords should be careful not to rent to too many sharers at once.  Doing this could potentially trigger strict HMO (Houses in Multiple Occupation) regulatory requirements.  Ask us for details of how best to take advantage of this opportunity, on 01273-735237.