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Landlord considers 'caretaker agreement' for flat during sale

A landlord is exploring a 'caretaker/licence agreement' for a flat being sold, offering a reduced rent of £750 including bills.

  • A landlord is considering a 'caretaker/licence agreement' for a flat currently for sale.
  • The proposed rent for the occupier would be £750 including bills, lower than the commercial rate of £1000 plus bills.
  • An editor's note highlights the risk that if a property is a main residence, it may fall under the Renter's Rights Act regardless of the agreement type.

A landlord, identified as Helen, is considering using a 'caretaker/licence agreement' to allow an occupier to live in a flat she is in the process of selling. The proposed arrangement would involve the occupier paying £750 per month, which includes all bills. This is a reduced rate compared to the commercial market rate, which is stated as £1000 plus bills.

The prospective occupier has reportedly sold their own property and is seeking short-term accommodation while house hunting, suggesting the agreement could suit both parties. However, an editor's note on the Property118 platform warns that if a property becomes someone's main residence, it could fall under the Renter's Rights Act, irrespective of the specific agreement used.

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