With the introduction of the Fixed Tenancy Agreements Act on 1 July 2024, new rules have been established that affect how you can rent out your property.
This Act changes the way tenancy agreements are drafted but still offers opportunities for flexible renting.
Below, we explain what the Fixed Tenancy Agreements Act entails, why expert guidance is essential, the practical implications, and the remaining opportunities for temporary tenancy agreements.
What is the Fixed Tenancy Agreements Act?
The Fixed Tenancy Agreements Act aims to provide tenants with greater security by making fixed-term tenancy agreements the standard.
The Act abolishes temporary tenancy agreements for residential properties in many cases, meaning that new tenancy agreements (for agreements after 1 July 2024) must generally be for an indefinite period.
However, there are exceptions available for landlords, such as interim tenancy agreements (Model C contracts).
The main rules are:
- Fixed contracts as the norm: New tenancy agreements are by default for an indefinite period unless a legal exception applies
- Exceptions for temporary renting: Temporary contracts are only permitted in specific situations, such as interim tenancies (e.g., during the owner’s temporary absence) or for specific target groups (such as young people or students)
- Transparency: Landlords must clearly state why a temporary contract is being offered, and this must comply with legal requirements
Why is expert guidance essential?
The Fixed Tenancy Agreements Act introduces complex rules that must be strictly followed.
Errors in contracts or failure to meet the conditions for exceptions can lead to legal issues, such as inadvertently offering a fixed contract when a temporary tenancy was intended.Our rental agency offers:
- Legal expertise: We ensure your tenancy agreements comply with the law and protect your interests as a landlord
- Personalised advice: We analyse your situation and advise on the best rental strategy, including possible exceptions for temporary renting
- Comprehensive support: From drafting contracts to finding reliable tenants, we handle everything, so you don’t have to worry about compliance with the law
Without expert guidance, you risk legal and financial complications. We ensure you can rent with confidence, fully aligned with the new legislation.
Practical implications
The Fixed Tenancy Agreements Act has several implications for landlords:
- Reduced flexibility: As fixed contracts are the norm, you can less easily ask tenants to vacate the property unless there are compelling grounds (e.g., urgent personal use)
- Higher contract requirements: Temporary contracts must meet strict conditions and be well-documented, or they will automatically convert to fixed contracts
- Longer rental periods: Fixed contracts often mean tenants stay in the property longer, providing stability but less room for interim adjustments
- Increased administrative burden: Landlords must carefully document why a temporary contract is justified, which entails additional work
Opportunities for temporary tenancy agreements
Despite the focus on fixed contracts, there are still opportunities to enter into temporary tenancy agreements in certain cases, such as:
- Model C contract (diplomatic clause): This contract is suitable if you intend to return to the property after a certain period, for example, after a temporary relocation. The contract must explicitly state that the property will be used by you again after the tenancy ends.
- Specific target groups: Temporary contracts are still possible for groups such as students, PhD candidates, or young people, provided this is properly documented and the property is suitable for this purpose.
These exceptions still offer landlords flexibility, particularly if you wish to rent out your property temporarily or have specific plans for the future. EHR helps you make optimal use of these opportunities by drafting the correct contracts and ensuring compliance with all legal requirements.
Why choose EHR?
With the Fixed Tenancy Agreements Act, working with a professional rental agency is more important than ever. We offer:
- Legal certainty: We ensure your contracts are watertight and comply with the new legislation
- Flexibility within the rules: We advise on how to utilise exceptions such as interim tenancies or Model C contracts
- Market knowledge: We understand the demand for rental properties and help you find a reliable tenant at an optimal rent price
- Comprehensive support: From tenant screening to drafting contracts and arranging inspections, we handle everything
The Fixed Tenancy Agreements Act is changing the rental market, but with the right guidance, you can still rent flexibly and profitably. Whether you opt for a fixed contract or a temporary agreement such as an interim tenancy or Model C, we ensure you maximise the potential of your property.
Rent out your property with confidence despite the Fixed Tenancy Agreements Act, thanks to our expert guidance. As an experienced rental agency, we help you navigate all the rules and successfully rent out your property.
Team EHR