What happens if my tenant leaves in the first year?

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A landlord asked us this week: "Now there are no fixed terms, what if my tenant leaves after a few months?" It's a fair worry. Since 1 May, every tenancy in England is periodic, and the rules cut one way: a tenant can leave on two months' notice, but you can only end a tenancy on a legal ground.

Tenants can now leave on two months' notice, with no fixed term to sit out. At NGU Homes, our letting guarantee costs £125 plus VAT, and if your tenant leaves in the first year, we re-let your property at no charge.*

* Doesn't include the cost of an inventory. Can only be added at the start of a new tenancy.

What's changed

Fixed terms ended on 1 May. Every tenancy in England now rolls on from one rent period to the next. A tenant can end it with two months' written notice, with no fixed term to sit out, while you can only regain possession by using a legal ground. That flexibility suits tenants who need it. For you, it means income that can end sooner than you planned.

What a short tenancy can cost you

Every time a tenant leaves, you have to find, check and move in someone new, and every empty week is rent you don't get. Doing that twice in a year hits your return, which is why it pays to budget for an empty month on any rental.

How we protect you

We start by choosing the right tenant. Every applicant goes through nine checks, from credit and income to landlord references and Right to Rent, and in some cases we visit them at their current home. Then, if a tenant still leaves within the first year, our letting guarantee means we re-let your property at no charge.* The guarantee costs £125 plus VAT, so you're not left paying for a second letting.

* Doesn't include the cost of an inventory. Can only be added at the start of a new tenancy.

The bottom line

Tenancies are more flexible than they were, but your income doesn't have to be less secure. Choose the tenant carefully, and have someone standing behind the first year.

Want to add our letting guarantee for £125 plus VAT? It can only be added at the start of a new tenancy, so get in touch before your next one begins. Email landlords@nguhomes.co.uk.

Watch the video on YouTube