A property let where the landlord is also resident. This is governed by different rules compared with the normal AST. The tenant has little security of tenure and can be evicted with minimal reasonable notice with minimal power of the courts to intervene. There is no formal ‘notice to quit’ – the landlord is entitled to regain possession of his property. Some foreign students prefer resident landlords as this encourages cultural communication and sharing and can benefit those nervous of sharing with other tenants.
Others prefer their privacy and to be left alone in a non-resident landlord home to socialise as they wish without having to consider the landlords views.
There are significant tax advantages for resident landlords – up to a certain threshold of income circa £5k pa is ignored by HRMC when calculating tax via annual tax returns.
Resident landlord 2
Another type of resident landlord relates to another type of tax– they are entirely different concepts:
A Landlord resident in the UK for less than 6 months pa is unlikely to be a UK resident for tax purposes and may thus be subject to tax at source on rental income collected by letting agents.
See also Non-Doms (non domestic landlords – i.e. non UK landlords).