Private Tenant or Council Tenant: Which is Better for You

Did you know there are different types of tenants? As you shop for your next apartment, you can choose to be either a private tenant or a council tenant. Some pros and cons go along with both, but you should first know the difference between the two.

1) Council Tenant
2) Pros of Council Tenancy
3) Cons of Council Tenancy
4) Private Tenant
5) Pros of Private Tenant
6) Cons of Private Tenancy
7) Different Types of Tenancy
8) FAQs

Council Tenant

Council tenants, also known as social tenants, are those who rent from a local council or housing association. The council or housing association acts as your landlord.

The primary focus of social housing is to be more affordable than private housing. This type of renting is also a little different in terms of the type of tenancy agreement since it’s an agreement between the tenant and the council. The agreement declares what the tenant’s legal obligations are and what the councils are. As a result, it also differs in rights you have to property like you can stay in your home as long as you want to, provided that you keep the conditions of your tenancy.

Pros of Council Tenancy

The main advantage of social renting as a council tenant is the cost rental rates are going to be a lot cheaper. You will also have more security as a long-term tenant since you can stay at the property as long as you want to and can only be evicted in certain situations like delayed or no rent payment, sublet the property, or cause excessive damage to the property. So, you would mentally feel more secure and don’t have to worry about being evicted if you are keeping the conditions of the tenancy.

Sometimes, the council that provides oversight of the building offers “home swaps” with other housing councils. In other words, tenants can move to another unit at the partnering building while maintaining all the rights and benefits they had at the original building.  This may also come in handy if you could not get the apartment you wanted at first because it was already occupied, or if you’ve outgrown your current place.  You will be able to swap with another tenant later.

Cons of Council Tenancy

The major disadvantage of being a council tenant is that you cannot be selective about the location of your unit. This is mainly because choices are limited given the affordability element of these apartments. As a result, you might end up getting an apartment in an area that is unfamiliar or further away from your family and friends. It may also take some time to get council housing, which can become a problem if you are in a bit of a rush to find a new place to live.

Private Tenant

Conversely, private tenancy includes traditional renters, they sign a lease agreement to live on the property and pay rent based on market trends.

Pros of Private Tenant

Private tenants are likely to get their apartments quicker because landlords process the application themselves.  If you are in a time crunch and want to move into a new apartment immediately, renting from a private landlord may be your best choice.  Another benefit is that you are more likely to get the apartment unit they want even if your credit score isn’t the best since private landlords do not often run background credit checks.

Cons of Private Tenancy

There are some downsides to being a private tenant. The major one is that there can be high upfront costs for renting privately. Besides higher monthly rent, you will also have to pay more upfront fees and a security deposit before you can move in.  This is usually not the case for a social tenant since there are minimal or no fees.

In addition, many private properties are generally not in good condition. Also, tenancy agreements tend to be for shorter periods, which means that if anything happens to the property, you will not be able to expect much assistance in finding alternative housing from the landlord.

Even worse, when private landlords want to evict the tenant from the property, they only provide tenants with a 30 days notice in most cases.

When it comes to rent prices, private landlords are not regulated by any agency when it comes to setting rates. That means landlords can set the rent at unaffordable levels if they so choose.

Tenant Private or Council: Which is Better for You?

There is no best answer to this–it is something that is entirely up to you. Consider your main priorities: are they mainly centered around affordability or flexibility? Weigh the pros and cons to make an informed decision based on your unique needs.

Different Types of Tenancy

In addition to private tenants and social tenants, there are other types of tenancy as well.

1. Fixed Term Tenancy

This type of tenancy is for a specific period and automatically expires when the term ends. The best thing about this tenancy type is that it cannot be ended. Before the term ends unless either party notifies the other that they wish to end the tenancy. Typically a 90-day notice is served to notify the party of the desire to leave early.

2. Periodic Tenancy

This is a type of tenancy with no fixed duration and can be extended by giving notice. This tenancy is best for those needing maximum flexibility.

3. Service Tenancy

Service tenancy is an arrangement between the tenant as an employee and the landlord as an employer. There is no need to draft a separate contract for the tenancy for a service tenancy. Usually, the rent is deducted from the paycheck.

4. Boarding House Tenancy

This type of tenancy gives residents rights to shared facilities in a boarding house. Usually, the tenancy lasts 28 days or more. For boarding house tenancy, a separate agreement is drafted and includes services that will be provided by the landlord. The landlord should also provide a copy of the house rules to the tenant.

FAQs

What is the best tenant to have?

A tenant who pays their rent on time takes care of the property, and communicates well with the landlord or property manager is the ideal one to have.

Who is called a tenant?

A person or an organization that leases or rents a property from a landlord or property owner can be referred to as a tenant.

What is the most common type of tenancy?

The most widely recognized sort of tenure is a fixed-term occupancy, where the inhabitant consents to lease the property for a particular timeframe, like a half year or a year.

What is the difference between assured and non-assured tenancy?

An assured tenancy is a type of tenancy that provides tenants with greater protection against eviction and rent increases. On the other hand, non-assured tenancy does not provide tenants with the same level of protection and can be ended more easily by the landlord.

Final Thoughts

A well-informed tenant is always at an advantage over someone who doesn’t understand the nuances of the rental market. Whether you choose to become a social tenant or a private tenant is entirely up to you. But knowing about their differences will help you decide which better suits your circumstances.