If you own a property that is occupied by a tenant that moved in prior to 1989 the status of that tenant will almost certainly be protected. This means that the tenant has the right to stay in their property until they die or until they decide to move out. The chances of the tenant moving out are highly unlikely as the tenancy will be on very favourable terms and the rent will be a fraction of it’s market value. Thankfully these tenancies can no longer be created because of changes in the law but there are still tens of thousands of these types of property investments that are spread across Britain.
These tenancies originally came about because many tenancies were agreed verbally and the law around tenancy agreements was much looser back then. Tenancies that were drawn up in the sixties, seventies and eighties were all open to abuse by the tenants which is why any tenancy that was created in these periods are protected tenancies that have special status.
The rent will be set by a rent officer who will be employed by the local rent office. If there is a disagreement over the amount of rent that should be paid the rent assessment panel that covers your area will decide on a fair rent. These rents are not comparable to a full market rent and most fair rents are a fraction of the market rent. In many cases the tenants will be eligible for housing benefit that will be paid directly to the landlord or his agent.