Premium Tenancies

  • Premium tenancies – difficult to distinguish the name from another concept called a Priemium Lease.  Note that a lease in this context, is a synonym for a tenancy agreement, contract to rent, etc. Yet the two homonyms have diferent perceived meanings
  • A premium tenancy is one where a deposit is paid by the tenant to the landlord, the value of which is more than 1/6th of the anual rent.  1/6 = 2 months = just over 8 weeks.
  • This might affect a student landlord charging 2 months rent equivalent as a deposit, allowing a summer rent discount (retainer) thereby proportionally increasing the deposit to more than 1/6th.  This is why deposits seldom exceed say 6 weeks rent in value.
  • In my 27 years letting I (Bob Leydon) have never come across a premium tenancy or even a reference to one.
  • Additional rights are conveyed to the tenants of premium tenancies, e.g. the right to sub let see also rent to rent , let to let etc.
  • Good for tenants: bad for unwited landlords.

What are your thoughts?

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