Periodic Tenancies Explained, Including The Advantages & Disadvantages

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What is a periodic tenancy?

A Shorthold Tenancy automatically becomes a “periodic tenancy” if new contracts aren’t signed after the fixed-terms expire in the original Tenancy Agreement and the same tenant(s) remain in the property. All the same terms and conditions apply, but the only difference is that a new periodic contract begins, otherwise known as a ‘rolling’ contract, which typically runs month-by-month.

The “period” is dependent on how frequently the rent is paid. For example, if the rent is paid on a PCM (Per Calendar Month) basis, which is most often the casem then the contract will run on a month-by-month basis (unlike fixed term contracts, which most commonly run for 12 months). Same principle applies if the rent is paid on a weekly or bi-weekly basis. Some run from quarter to quarter or even year to year.

Many people assume that as soon as a tenancy expires (e.g. the fixed date has come to an end/passes) that the tenancy automatically terminates. That is not true. The tenancy can only be terminated through proper legal processes e.g. serving a section 21, through mutual agreement, eviction (assuming there are grounds to do so) or if the tenant surrenders the tenancy.

When/how does a periodic tenancy begin?

To clarify, you don’t have to do anything.

As said, tenancies automatically become periodic immediately after the fixed date in the contract has expired. The landlord or tenant doesn’t need to do anything, and you don’t need a special kind of contract/clause.

What are the advantages of a periodic tenancy?

  • They allow flexibility e.g. if the landlord suddenly wants the property vacated, he/she can immediately serve a Section 21 Form – notice of possession, without having to wait for a fixed term to expire before the tenant has to vacate.
  • There’s no need to arrange another tenancy agreement, the clauses in the expired agreement will still apply. Additionally, saving paper is awesome!
  • A lot of snake-oil letting agents charge a tenancy renewal fee for renewing contracts. So, if a landlord allows the contract to transform into a periodic tenancy, a new contract is not required, consequently escaping the admin costs associated with the process.
  • If the landlord wants to be greedy and increase rent, or add any additional clauses to the contract, he can do so pretty sharpish, providing that the periodic tenancy is terminated and a new agreement is put in place. Since the period of a periodic tenancy depends upon the rent payment schedule, it doesn’t take long for any of the new clauses to be added since most rent is paid on a monthly basis.
  • Finally, the biggest advantage in my opinion, which makes periodic tenancies incredibly useful. It’s a lot quicker and easier to remove rogue tenants during a periodic tenancy i.e. Landlords can serve a Section 21 to regain possession, and providing that it’s been served correctly, the eviction process is usually a lot more efficient than serving a Section 8 Eviction notice.

What are the disadvantages of a periodic tenancy?

  • As I already experienced in a harsh life lesson, putting good tenants on periodic tenancies is risky because they can unexpectedly vacate pretty quickly.
  • Tenants typically only need to give one month’s notice when they’re on a periodic tenancy, which may not allow a comfortable amount of time for the landlord to find new tenants if the current tenant gives minimal notice. The issue can become extra stressful if the property requires cosmetic work in order to attract new tenants.
  • Over the years, new regulations have been passed through into the BTL industry (e.g. Tenancy Deposit Scheme). These new regulations should be mentioned in the tenancy agreement as statutory clauses. Point being, if you allow a contract to continually be periodic for a long period of time, it can slowly become out of date. It’s important to keep tenancy agreements inline with the law, so the T&C’s are always clear in black and white.
  • Finding new tenants can be expensive, so if you’re a landlord that prefers using 6 months fixed term agreements, and always allows the tenancy to go periodic, you’re leaving a big window of opportunity for a high tenant turnover rate. It can often be more cost-effective to fix tenants for long term. Of course, that’s largely dependent on your own judgement to decide on whether you have good tenants or not that are worth the commitment.

Contractual Periodic Tenancies

“Contractual periodic tenancies” are slightly different to “Periodic tenancies”

A contractual periodic tenancy exists when both landlord and tenant agree in contract that the tenancy will become a periodic tenancy, as opposed to allowing it to naturally roll into one without any mention of it (after a fixed term contract expires and where a tenancy isn’t renewed, the tenancy will automatically become periodic).

It be a contractual periodic tenancy in three ways:

  • 1) By making it clear in the original tenancy agreement that the tenancy will become a “contractual periodic tenancy” after the fixed period (the word “contractual” should be stated).
  • 2) By getting the tenant to sign a periodic tenancy agreement when the fixed term contract is shortly due to expire, so it will get overtaken by the new periodic tenancy agreement.
  • 3) It is possible start a tenancy with a periodic tenancy rather than a fixed term of 6 months or 12 months. You can do this by giving the tenant an initial term of just one month (or a week) and then just allowing it to run on. However, bear in mind you cannot serve notice to the tenant for at least 6 months, because they are still protected by their statutory rights which stipulates a shorthold tenancy cannot be shorter than 6 months. This can only be overturned if there is a mutual agreement by the landlord and tenant for the tenancy to end.

Of course, the contract is still rolling like a regular periodic tenancy, based on how frequently rent is paid.

It’s actually a good idea to have a contractual periodic tenancy. Landlords are responsible for the costs of council tax if the tenants are on a periodic tenancy and move out during a notice to quit (eviction notice, Section 8) period. During the period of notice if the tenants choose to move out it does not exclude the landlord from paying council tax. However, if is a contractual periodic tenancy and tenants move out during notice we are covered and the responsibility for payments falls to the tenant.

Additionally, it is worth noting that if your tenant is on a periodic tenancy and rents another house (not that likely you may think but it does happen) then the responsibility for payment will once again fall to the landlord, unless it is contractual.

Conclusion

I know many landlords, including myself, favour periodic tenancies because of the flexibility. I generally like things to dangle and have wiggle room :) But it’s important for landlords to remember that the flexibility also applies to tenants. Once the tenancy becomes periodic, tenants have the ability to vacate quickly, and leave the landlord with a lot of work to do in a short space of time, especially if the property needs to be repaired in order to become presentable. Finding good tenants isn’t always the easiest, cheapest or quickest of processes.

So, my question to my fellow landlords, do you allow tenancies to go periodic? Do you have any kind of game plan when it comes to contracts?

107 Comments- Join The Conversation...

Showing 57 - 107 comments (out of 107)
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Mike 15th July, 2015 @ 09:11

Daniel,

Sounds like you are of the opinion that it is OK for me to come round and put a sledge hammer through all your car windows, because you have insurance that will cover it and the increase in premiums is OK or you can take me to court by paying £500 and I will be ordered to pay you back, but I can only afford £5 a month, but thats OK because you can wait decades for your money.

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Dave 1st August, 2015 @ 09:51

I hope I'm reading and understanding all this right?! I am a tenant and my AST runs out on the 28th of this month. The letting agents have informed me that my rent will be increasing from £615pcm to £675pcm. Of course, there will also be an admin' charge of £90 to renew the agreement too!
I cannot afford this huge increase in rent and, am desperately trying to find somewhere else that doesn't require me to move a ridiculous distance from my children and work.
I am a single man on a (I suppose they call it) "average income", have no savings, can't afford to buy, am not "eligible" for Housing Assoc' (if I can actually find any HA properties in my area!).
As I understand it... I don't have to renew my agreement and it will become a "Periodic Tenancy" based on the "old agreement". And unless I am served a "Section 21 notice", I can continue to live here on the old terms?
I am a good conscientious tenant, always pay on time, allow contractors to enter my home while I'm at work, have looked after the property and done a few minor repairs myself. I'm between a rock and a hard place!
Thanks for the opportunity to "air". And for a great blog.

Dave
Milton Keynes

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Dave 1st August, 2015 @ 09:57

One thing I needed to ask...
Do I need to inform the agents of my intentions, to not renew??

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The Landlord 1st August, 2015 @ 11:55

As I understand it... I don't have to renew my agreement and it will become a "Periodic Tenancy" based on the "old agreement". And unless I am served a "Section 21 notice", I can continue to live here on the old terms?"

Correct! And if they serve a section 21 they must give you 2 months notice to vacate! Also, for them to serve you with a valid section 21 notice, they must have 1) protected your deposit into a tenancy deposit scheme 2) provided you with "Prescribed information" relating to the deposit.

Also, you don't actually need to start a new tenancy agreement just to increase rent, they could just serve you with a rent increase notice. In that case, there is NO admin work which you would need to cover, only the landlord.

You don't NEED to inform the agents of your intentions, but it's better to make it clear you would like it to roll onto a periodic tenancy, in which case you can make a point of saying no extra admin work is required.

I'm sure they will also be charging the landlord something called a Tenancy Renewal Fee just to renew the tenancy. The landlord may not know that he/she won't be required to pay any extra 'admin fees' if the tenancy rolls onto a periodic tenancy, so it favours both parties! The only people losing out are the agents.

It might actually be worth talking to the landlord directly, and proposing the periodic tenancy. By law, the letting agent has to provide the tenant with a contact address for the landlord (if you request it).

Good luck!!

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Dave 1st August, 2015 @ 12:44

Thank you, Landlord. Very helpful. Will se if I can get his details.

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Neil Blake 3rd August, 2015 @ 20:18

Hope someone can guide me in the right direction. Just this morning been to court with my tenant who owes me 6 months rent. The 6 months Assured Term Contract has ended last month so is now I presume a rolling (periodic) one.Although I went through the process of issuing a Section 21, the judge dismissed it stating I'd not gone about it the right way due to the fixed term contract ending before the notice period or something, but warned my tenant (advising me) that now I can issue a 14 day notice to quit to get them out. Would this be the Section 8 or Section 21? Or can I just press to issue with an accelerated possession procedure? Many thanks.

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Mike 3rd August, 2015 @ 21:32

1. 14-day sounds like S8 for rent arrears..
Then you have to go back to court to get order for tenant to leave.

2. What was the exact reason for judge throwing out the S21?
There may be a case for appeal if his reasoning is wrong.
Given the short time between end of tenancy and court hearing, I would guess that S21 "after" date was before the last day of the tenancy,

It appears that you should have issued S8 immediately tenant was 2 months in arrears (that is missed 2 payments). S8 can be used during fixed term; S21 only for a date after last day of fixed term.

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Neil Blake 4th August, 2015 @ 10:23

Thanks Mike. We can forget the Section 21 issues as yesterdays court proceedings was my attempt at Reinstating the previous court case because I didnt attend due to not getting the letter from the court (the judge argued that we were also sent an email - which ended up in my unchecked Spam folder! So he dismissed the whole case and said I had to start again. £400 down the pan- £250 for taking it to court (Section 21- done from the .gov.uk website) and £150 for the attempt at reinstating it. The fixed AST tenancy has now ended so rolls on as a Periodic tenancy if I'm not mistaken. Now, as the arrears are 6 months, we can take the Section 8 route I believe, but I'm very green and don't want to fill in the Section 8 wrongly. I've spotted online that someone offers a video presentation of the filling in of the form (plus where to download it free) for the price of £29.99 for access to the "How To..." video. Is this a route to go down? We also took the tenant on without a deposit, though this is stated as such on the original fixed term agreement ("no deposit taken"). Would this be a problem? Really glad of your quick support and excellent website by the way, thank you.

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Mike 4th August, 2015 @ 21:07

Neil,

On the two occasions I hve needed to use S8 I have used a solicitor. Then if it is not filled in correctly, you can go after them.

Also issue S21.

Note for the future that S8 can be issued with 2 months arrears ay any time (initial term or periodic).

The only problem with not taking a deposit is that there is no money to offset. There is no legal problem.

Note that any notice has to be served before 5pm, otherwise it is deemed served the next working day; you need to ensure that minimum notice is given.
If you hand-deliver, then take a witness.

Don't forget to ask the judge to award all arrears and costs of eviction.
If you have an interest clause in the contract for late payment, then remember to ask for
a) interest on the arrears from the date money was due.
b) interest until the money is paid

Remember to ask for award of payment to cover damage caused to property (if any).
Remember to ask for award of any future costs, such as baliffs fees if he does not leave, and rent until he does leave.

If the tenant does not pay, then you will have to go back and ask for attachment of earnings order.

It is a hell of a lot of hassle to get your property back and the money you are owed.

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Neil Blake 5th August, 2015 @ 09:35

Thanks Mike. I've gone down the S8 route and attached rent arrears dates etc downloaded all paperwork from web along with guides on how to fill it in. Hopefully done everything right. Do I have to notify the court that I've served the notice or wait until the 15 days period is up? Thank you.

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Mike 5th August, 2015 @ 11:50

Unfortunately you are back to stage one with the courts.

You cannot start court action until the notice period has expired and the tenant has not left..

If the tenant does leave, then (I believe) you can go to the Small Claims Court to seek payment for money owed

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Velvet Slug 31st August, 2015 @ 17:26

Can anyone help me please?

Our fixed short term tenancy ends today. Our landlord would like to increase our rent by 7.5% to cover the bathroom refurbishment(the tiles are falling off the wall). We signed our last contract agreeing a 2 month notice period, does this still stand as we have requested to go on a one month notice period now we are on a periodic contract.

Thanks in advance now!

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debbie 7th September, 2015 @ 13:16

Hi
I signed a 12 month AST which runs until April 2016. In this contract it actually states it's a periodic tenancy. What I need to know is I plan to move before the tenancy is up but it says I must give 2 months notice and also pay any rent left on the lease if property not let to new tenants by the end of my 2 months notice. Is this right that I would be liable for the rent until property let.

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Mr Henchliffe 7th September, 2015 @ 14:12

Hi Debbie,

A short hold tenancy isn't the same as a period tenancy (you appear to know this). If in doubt, take your tenancy document to the Citizens Advice and gain assurance of your rights under the agreement you have signed.

Ask the Citizens advice if they will supply you with something in writing about what's agreed regarding your rights.

It doesn't make sense to worry about it, or to ague with anyone about it. Simply find out your rights first, then act accordingly. Keep it simple.

Just let your agent and landlord know in writing what you intend to do based on what your rights are (keep a copy of this letter which must be signed and dated by you). Then you have done everything you can.

If someone wants to moan after that, then that's their problem.

Good luck

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kate 13th September, 2015 @ 06:53

We rented our first rental property in the end of July. The tenants signed a six month agreement. If we want to extend this to another six months when does this have to be done?

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Mike 18th September, 2015 @ 19:27

@Kate:
Any time you like.

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Pat 28th September, 2015 @ 13:09

Hi , I'm a landlord and have the very best tenants. They've had a two year contract that is due to expire. Before that they had six months, and before that I had the tenant and agent from hell. But it taught me how to do everything myself. The tenants are a couple in their 70s,and have been very open with me....If either one dies, the other won't be able to pay the rent. They have done a lot of work on the house and it is immaculate. We also have done everything they have asked us to do. Perfect. I don't feel that I could give them two years again, but would be prepared to cut my losses at a six month tenancy. Would not risk letting again, so while the house is in good condition would hope to sell. Would this be better than letting it go to a rolling tenancy.They would have a little more security. Also as they would be going for council property, is it enough for me to give the end of the tenancy date, for them to have to quit my house. From previous dealings I understood that the council will not recognize anything, other than an eviction notice from the court. Without that they are intentionally making themselves homeless.Also they have a daughter with children, who also lives in rented property.I don't want to risk them moving in so the full rent is paid.Is there a way that they could move in without my consent ?

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Jamie 14th October, 2015 @ 09:20

Hi, I currently rent a property which I signed to live in for 2 years, now there has been some confusion as the landlord wanted us to sign a new contract for 2 years and incresed the rent by £30 pcm. We signed the agreement but there was confusion at the estate agents who said they had not received the contract, now all of a sudden they apparently have. Also a £90 charge to sign the new contract has not been by us and having looked on the tenancy deposit scheme website it says our deposit runs until 'periodic'. Does this mean we are not actually tied down for the next 2 years and are actually rolling month to month?

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pat 18th October, 2015 @ 14:35

Hi,

Three question please, our 6 month assured tenancy with contract has expired, the landlord does not want to pay for a new contract and wants us to pay him monthly directly bypassing the agent. Do we get our deposit back? Our property had no water supply for 3-4 weeks during assured tenancy we had to buy bottled water and had to boil that water for washing, also we had to vacate does this make the property uninhabitable we had to go on holiday for one week after the water board issued a 30 day compliance, new pipes and supply had to be fitted, how much rent are we entitled to reclaim? If our rent expired on the 26th September and we are continuing on a non contract periodic basis is one month due again on the 27th October as the Landlord is trying to ask for 2 months so we stay ahead, and also even though he no longer uses agent feels our deposit will stay with them, we feel that contract has ended and should be returned to us what is the law please? it seems wrong we have to fork out now £2,000 in one month and still have our deposit with-held. Thank you.

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sammy 27th May, 2016 @ 16:06

can somebody advise me, I was a guarantor for somebody but thought it would only be for 6 months. Once she could prove she was responsible for paying rent I thought the agreement would end

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helen 28th May, 2016 @ 08:54

My tenant had a 12 month contract which expired last October and went on to a rolling contract. He has now advised he is looking to move and asked how much notice he needs to give. I would like to say 2 months, but would this be legal as we have no written rolling contract, or must I accept one month.He has been a good tenant but now needs something bigger.

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MdeB 4th June, 2016 @ 23:19

Helen, I believe that the law for notice by tenant is "at least one month's notice ending on the last day of a tenancy period is required".

The law (I believe Housing Act 1988) states that the tenancy becomes a Statutory Periodic tenancy on the same terms as the original tenancy EXCEPT for the notice period.

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MdeB 4th June, 2016 @ 23:32

Sammy,
It depends on what the document you signed says, and the type of tenancy agreement.

If the tenancy agreement gives the term of the tenancy as a fixed period and does not state something like "continuing thereafter on a periodic basis", then it is likely that you are guarantor only for the fixed term.

If it does say something like the above, then it is likely that you re guarantor until the tenancy ends.

If a new tenancy agreement is signed then you are no longer guarantor.

The document you signed as guarantor may override the above generalisations e.g. it may say that you are guarantor for any Statutory Periodic tenancy.

If you are being chased as guarantor and believe that you should not be, then seek proper legal advice - I am not a lawyer.

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Steve 19th June, 2016 @ 06:07

We are just about to receive a contract for a 12 month let, but I would like it specifically stated in the contract that it revert to a periodic tenancy at the end of the 12 month period. Should this be included in the 'Special Conditions' section of the contract? The main reason I want to do this is that I don't want to pay the £140 fee the agancy will charge for a new contract and would like the flexibility of periodic tenancy once our 12 months is up. The agency is hesitant to even consider this, probably because they don't like to miss out on their fee, though I would think they should take this request to the landlord surely before they reject it?

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Simon Pambin 19th June, 2016 @ 15:18

Hi Steve, I can see why you might feel more comfortable with such a clause but in reality it's redundant. A statutory periodic tenancy is just what happens in the absence of a contract so, when your 12 month contract ends, if you don't sign a new contract at that stage, then a statutory periodic tenancy is what you will have. It's then up to your landlord whether he wants to retain you as a tenant on that basis or ask you to move out. I agree the £140 is a ripoff but I dare say if you demand a bespoke contract, they'll come up with a bespoke price to match!

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Steve 19th June, 2016 @ 15:43

Thanks Simon, that makes sense. I'll let it slide for now and deal with it at the end of the 12 months.

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Namratha 25th September, 2016 @ 13:19

hi,
my AST contract ended 20th August, I told my landlady I'd be staying on. During the tenancy I had I paid rent on a termly basis i.e 15 or 16 weeks. Since she increased the rent for the new term beginning 17th Sept, does this mean that my old contract cannot lapse automatically into a periodic tenancy?
I want to stay on but I won't be able to commit to a full year so I did not know what to ask. If I leave giving 1 month notice will I be entitled to ask for my deposit back?

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Dave 25th September, 2016 @ 14:41

Namratha.
My understanding is that as long as you haven't signed a new contract, the same terms apply?
However, the landlord is still entitled to increase the rent periodically. Hope this helps.

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MdeB 26th September, 2016 @ 17:50

Namratha,

[I believe that] The periodic tenancy has a period equal to the last rent payment period under the original agreement. Also your 1-month notice must end at the end of a rent period.

ou should be able to get your deposit back, less any reasonable deductions.
If you cannot agree on deductions, then the deposit protection scheme should arbitrate and require the landlady to justify the deductions and award you whatever is not justifiable.

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Namratha 28th September, 2016 @ 18:24

Thanks Dave and MdEB
if, I paid 4 weeks'rent for the time between when the AST fixed term ended and the new term started this would mean I'm on a periodic tenancy, right?
I'm not keen on signing a new contract so I've been dodging the landlady. I could ask for an individual contract but I'm sure she'd refuse and serve notice.
Does anyone know how long it takes to get a deposit back?

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MdeB 2nd October, 2016 @ 21:07

Namratha,

If the landlady has not served notice for possession after the end of the fixed term and you have not vacated by the end of the fixed term, then a periodic tenancy arises.

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Dave 2nd October, 2016 @ 21:21

Namratha

The deposit is only released once the premises are vacated.
Always received mine within a couple of weeks.

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Ray Bensley 12th October, 2016 @ 08:37

We took on a 12 month short term tenancy which ends on 29 Nov. We paid 1 year rent in advance and the Agent had an Introductory only contract with our Landlord. The Agent is now asking us to pay £240 for Bank/Landlord References and £84 for a new Tenancy Agreement. The Agent said we could either take a 6 month or another 12 month term by paying in advance for the agreed term, in either case we would only need to pay for a new agreement. We both thought that the tenancy would aoutmatically go onto a Periodic lease. Are we right?

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Dave 13th October, 2016 @ 09:30

Yes Ray you're right.No need to pay for new agreement. Go back through previous comments, it's all in there. Good luck

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MdeB 13th October, 2016 @ 21:42

Ray,

1. Have you spoken to your landlord to verify that he/she knows and agreed with the agent's action?

2. If no S21 notice is served before the end of the fixed term, then (I believe) the periodic tenancy will be a 12-month periodic, not a 1-month periodic. The law is that the period is whatever the period of the last rent payment due was [Housing Act 1988 Section 5(3)(d)]; so as you paid 12-monhs up front for a 12-month tenancy, the period becomes 12 months. However, if the agreement says the tenancy will continue after the fixed term as a periodic tenancy, then the period will be as stated in the agreement.
If S21 is served before the end of the fixed term, then no periodic tenancy is created.

3. Personally, I use an agent for tenant-find only and take responsibility from day one (no more agent involvement), and I let tenancies become periodic UNLESS the tenant wants a new agreement (no charge for periodic, charge for new agreement because I have work to do).

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Michael 10th November, 2016 @ 14:00

Hi, Apologies if this has been answered but a friend of mine is having an issue.

Lets call them 'A'. A's fixed term contract is ending on 30th November. There are 3 housemates, treated as 'the tenant', all signed the contract and are jointly and severally liable. A wants to leave the house and the contract. However, the estate agent has said that the tenancy will become periodic and A will still be liable for rent if she leaves. A periodic tenancy was not stipulated in the contract they signed last year.

What are A's options?;

1) A leaves and hopes the housemates cover the rent. Unless agreed by them does she still need to pay rent until the tenancy ends or they find a new tenant?

2) Convince housemates to end the tenancy agreement?

All help welcome, we are under a bit of a time constraint due to a new contract at another proprty waiting for us( we wont sign obviously until this is sorted)

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Namratha 10th November, 2016 @ 19:15

@Michael - Is A's housemates ok with her finding a replacement? If yes, it can't hurt A to put an ad out there to find someone to replace her in the tenancy. In a joint tenancy, housemates can object to you bringing some unknown person in , citing that they're the ones who will have to put up with this new person but it is best for A to let them know of her intention to let the room out in the first place so there's no surprises.
As far as I'm aware, a periodic tenancy offers either party the chance to end the contract giving 4 week's notice (sometimes shorter-say 2 weeks). So I don't understand what the agent meant when they said she'd still be liable? She's only liable for rent if she fails to find someone to replace her and fails to provide enough notice of her intent to leave.

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Michael 10th November, 2016 @ 21:29

Hi Namratha,

A has given 2 months notice to the tenants, agency and landlord. Does this mean that she would have to at least one month of periodic tenancy and give notice? I.e AST contract ends on 30th, she gives notice on the 1st?

She has been actively looking for a housemate and everyone is aware. We just need to know if she can legally leave the property and contract on the 30th without being responsible for any payments after that regardless or what the other housemates choose to do.

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Namratha 11th November, 2016 @ 10:17

Hi Michael,
If she's successful in finding someone to take over and this person signs the contract, it essentially releases her and she won't be liable for further payments. Her other (and more difficult to negotiate) option is to get everyone on board the idea of terminating the contract jointly. But its easier to find someone to replace you than to convince several people it is in their best interest to terminate.
I'm drawing this from my personal experience as an AST tenant, I lived for a year on a student property and carried on to the next year not notifying my landlady I don't plan on staying the whole year. When I didn't sign the contract she asked me what was up and wasn't exactly too pleased (as you can imagine if you were in her place) when she heard I was leaving before the new term expired. I however assured her I'd find someone to replace me and did so after advertising it on gumtree. The new person met her and me, signed the contract and he's moving in Jan which worked out well for all 3 of us. Luckily for me my housemates didn't object and landlady didn't outright refuse to allow replacement. As far as I know, periodic tenancies offer more power to the tenant because if the living arrangements don't suit, they can easily just go since they're not bound by a contract stipulating a certain time frame ( is there such a contract in place? if so, she's on some sort of Assured Shorthold Tenancy-min term 6 months) I hope this helps.

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Michael 11th November, 2016 @ 10:37

Hi Namratha,

Thanks for the further reply. The 12 month contract expires on 30th November. Is she automatically tied to the periodic tenancy even though this is not stipulated in her original 12 month contract?

She has also been told twice by the agency that she is ok to leave on the 30th, other tenants become liable, however, they then clled back to say sh was given false information. we are seeking legal advice from citizens advice today so hopefully clear it up

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MdeB 11th November, 2016 @ 11:12

Michael,

If A has given valid notice to the landlord/agent, then the tenancy ends at the end of the notice period (assuming that is the end of the fixed term) and she has no further liability.

ALSO, that notice ends the tenancy for ALL the tenants.

If the other tenants wish to remain after the fixed term, then they will need a new agreement with the landlord/agent. If they do not do this and stay in the property, then under the Distress For Rent Act the landlord can claim double rent from them. I do not know how this 'double rent' claim would affect A if she has vacated; I can see arguments both for and against her being liable.
A needs to tell her co-tenants that their tenancy will end so that they can take appropriate action (they have already had 2 months' notice, but may not have understood the legal implications of this), probably seek a new agreement to stay.

For information: A periodic tenancy automatically arises if the fixed term ends, neither side as given notice to end the tenancy at the end of the fixed term, no new tenancy agreement is signed, and the tenant stays in the property.

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Michael 11th November, 2016 @ 11:16

Hi MDeb,

Please can you explain how this ends the tenancy for all tenants if only she has given notice? (IS this to do with Joint and Severally liability?)

Only she has given notice of ending the tenancu

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MdeB 13th November, 2016 @ 21:49

Michael,

It ends the tenancy for all because that is what a court determined (I do not have the reference to hand).

The essence is that every named person constitutes the 'tenant', so notice by one is notice for all.

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MdeB 13th November, 2016 @ 21:59

I have googled this and found:
a) Hammersmith and Fulham LBC v Monk (1992), confirmed in
b) Sims v Dacorum Borough Council (2014).

See http://www.wilsonbrowne.co.uk/joint-tenancy-sims-v-dacorum-borough-council-confirmation-notice-given-one-joint-tenant-ends-tenancy/

However, there is a suggestion that if the tenancy agreement has a term to the contrary, then that term takes precedence.

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Michael 14th November, 2016 @ 09:02

Hi MDeb, really appreciate the help and this is what we wanted to hear! I am not too clued up on legal knowledge, to clarify;

If a replacement cannot be found, A has to switch to the periodic tenancy, serve notice on 1st December (4 weeks as this is how frequently rent is paid) to signify ending the periodic tenancy on 29th December, this in turn ends the tenancy for all?

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MdeB 15th November, 2016 @ 20:53

Michael,
NO.

If, as you say, A has already given notice to end at the end of the fixed term, then the tenancy ends then. As notice has been given, A does not have to find a replacement.
If the others wish to stay in the property, then they will need a new tenancy agreement, either just for them or for them plus one other who THEY need to find.

It is only if A has not served valid notice to end the tenancy at the end of the fixed term that she would need to serve notice ending at the end of the first month of the periodic tenancy. Note that minimum of one month notice ending on the last day of a rental period is required to end a periodic tenancy (even if the tenancy agreement says something else, UNLESS the tenancy agreement explicitly says the tenancy will continue on a periodic basis at the end of the fixed term).

SO, if A has served valid notice on the letting agent, then she need do nothing more as the tenancy ends at the end of the fixed term and she can walk away. If the letting agent then accepts rent from the remaining tenants, then that creates a NEW 6-month tenancy for them.
If A has not served valid notice, then she should serve it now to end at the end of the first period of the periodic tenancy.
See http://england.shelter.org.uk/get_advice/private_renting/ending_a_tenancy/ending_a_periodic_agreement

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Nick 22nd November, 2016 @ 09:46

I have a tenant originally on a 6 month shorthold tenancy which automatically become a periodic tenancy and has been so for many years . I would like to make a modest increase in rent (still below market rent) . Can I simply secure agreement in writing from tenant or do I need to issue a section 13 notice ? Thanks

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MdeB 24th November, 2016 @ 00:16

Nick,

Yes.

If tenant agrees to the increase, then that is all there is to it.

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Alison 29th November, 2016 @ 16:02

We have been tenants on an Assured Tenancy for 24 months with no problems on either side & happy with the arrangement. However, We have today received a letter informing us that the we are now residing at the property on a Periodic Tenancy and with a rent increase £1,150 to £1,6500.00 per calendar month.

Is this possible and in accordance with current legislation. Please advise.

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Simon Pambin 29th November, 2016 @ 17:19

Hi Alison,

If your previous AST has ended and you haven't signed up to a new one, then you are indeed in a Statutory Periodic Tenancy, so that much is true. However, your landlord cannot just hike the rent up by 40% (or at all!) without either gaining your consent or going through the proper process, which is a Section 13, see http://www.propertyinvestmentproject.co.uk/blog/notice-of-rent-increase-form/

How does £1,650pcm compare to similar properties in the area? Is it reasonable? Ultimately, if you're unable to agree a fair rent, your landlord could serve you notice and find new tenants but in doing so he will incur costs and still may not find anybody who is prepared to pay what he wants.

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Louise 8th January, 2017 @ 18:37

I used my agent's contract which was a monthly tenancy agreement but the rent was payable 6 monthly. Now this annual tenancy is about to expire. I have served a s.21 and am waiting to see whether my tenant (or subtenants, rather) will leave.

I am unsure whether the court will accept a s.21 with a 2 month notice period, given that I received two payments of 6 months' rent during the year's tenancy. Also, my s.21 expires 10 days after the tenancy agreement ends. Does this mean I am on a periodic tenancy? If so, is it a 6 month periodic tenancy? (because rent was paid 6m in advance) Can I ask for rent monthly during the process of applying to the court?

with thanks

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