Periodic Tenancies Explained, Including The Advantages & Disadvantages

Page contents:

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?

138 Comments- Join The Conversation...

Showing 88 - 138 comments (out of 138)
Guest Avatar
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.

88
Guest Avatar
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?

89
Guest Avatar
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

90
Guest Avatar
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).

91
Guest Avatar
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)

92
Guest Avatar
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.

93
Guest Avatar
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.

94
Guest Avatar
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.

95
Guest Avatar
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

96
Guest Avatar
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.

97
Guest Avatar
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

98
Guest Avatar
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.

99
Guest Avatar
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.

100
Guest Avatar
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?

101
Guest Avatar
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

102
Guest Avatar
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

103
Guest Avatar
MdeB 24th November, 2016 @ 00:16

Nick,

Yes.

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

104
Guest Avatar
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.

105
Guest Avatar
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 https://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.

106
Guest Avatar
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

107
Guest Avatar
Claire H 24th January, 2017 @ 23:05

I am a landlord with a tenant that has had a 3 year assured shorthold tenancy that ended in December 2016. She did not renew the agreement so I assume she now has a statutory periodic tenancy. We informed her that the rent would be increasing from £650 to £900 per month which is reasonable for our area. She did not pay the increase and she was issued a Section 21 notice for the rent to officially increase in March 17. She has informed us recently that she cannot pay the increase with the absolute maximum she could afford being £700. She is a single parent on housing benefit and became a tenant as a favour to a relative. She states that she cannot find anywhere else to live and council will not assist until she is served with eviction. I have always been upfront (right from the start) with her about future increases and this would be the first increase. Any suggestions as to next action are gratefully appreciated as this is the first time I've had to deal with this.

108
The Landlord Avatar
The Landlord 25th January, 2017 @ 10:15

@Hi Claire

My initial thoughts are... that's quite a big jump in rent.

Despite whether or not you were undercharging, you set the rate at £650, and now forcing a 30% rent increase after 3 years of being a tenant. I don't think anyone would be comfortable with that.

In any case, you can't serve her an eviction notice until you have grounds e.g. 2 months of arrears. But if she fights her corner and this goes to court, my opinion is, I don't think the Judge would actually favour you in this case. But as said, that's just my opinion.

I think the only thing you can do is wait and see to see if she vacates on the day that is specified on the Section 21 notice. If not, you'll have to get a court order to get her removed. Assuming you have served a valid Section 21 notice, it should be relatively straight forward in your case.

I would personally talk to her, accept the £700PCM for now, and advise her to look for a new property.

109
Guest Avatar
MdeB 25th January, 2017 @ 19:17

@Claire 108

Seems to me that you are being greedy.

110
Guest Avatar
Sarah 7th February, 2017 @ 09:54

We have rented our current property since 28 august 2012. The initial 1 year period came and went and we didn't sign a new contract. We are now going into married quarters and after enquiring about notice period, have been told it's 1 month in line with our original start date. We have been given our move date by the mod and are happy to give 5 weeks notice to our letting agents, taking us to Monday 13th March. But if we have to wait until the 28th to give notice, we will be paying rent on 2 houses for a full month. Which we can't afford to do. We have already moved our move in date once due to my husbands deployment and the mod won't allow us to move it again. Can our letting agents insist we go 28th to the 28th? Tia. Sarah :)

111
Guest Avatar
John 7th February, 2017 @ 15:31

I had agreed a 6 month shorthold tenancy and stayed 6 months more on a periodic tenancy and would like to move out now. The estate agents have said I need to give a 8 week notice in writing which seems a lot I would have thought 4 weeks would be ok? even if its contractual periodic is 8 weeks legal?

112
Guest Avatar
MdeB 7th February, 2017 @ 21:15

@sarah 111: They can, but try going in and talking to them to explain the situation; you might talk them round.

113
Guest Avatar
MdeB 7th February, 2017 @ 21:44

@John 112: If it is a contractual periodic tenancy, then it can be anything that you and the landlord agreed.

If it is a statutory periodic, then it does not matter what the tenancy agreement says (Housing Act 1988 S5(3)(e)). I believe the rules are (but I cannot find them):
If you pay rent monthly, then it is 1 month ending on the last day of a rent period.
If you pay rent weekly, then it is 4 weeks ending on the last day of a rent period.

114
Guest Avatar
Jay E 14th February, 2017 @ 18:36

We are tenants who have been renting a property for two years now, the first year on a fixed tenancy agreement which then was changed after 12 months onto a Contractual Periodic Tenancy, currently on going.

12 Months into this Contractual Periodic Tenancy the landlord has requested an increase in rent by a small amount which we have agreed is fair and reasonable and they have also appointed an agent to draw up a new 12 month fixed contract, which again is fine with us. The changes the landlord has requested are fine , however the agent is asking us to pick up the bill for this new contract? This doesn't seem right at all?

Our original tenancy agreement (for the initial fixed term 12 month tenancy) outlines extending our tenancy will come with a renewal fee which we paid when we went from a fixed to a Contractual Periodic Tenancy. However the agents are asking us to pay yet again (pointing out this original clause in the fixed agreement) for this new fixed contract which was requested by the landlord, which will change us from a Contractual Periodic Tenancy to a fixed.

Can anyone shed any light onto why we need to pay for this contract and why this isn't being paid for by the landlord?

Many thanks in advance!

115
Guest Avatar
plug 14th February, 2017 @ 19:35

@Jay E Why not agree to a new fixed contract but only subject to no fees? The contract renewal fees in the UK are a scam and do not reflect the actual cost as it really just involves some office lacky changing a few items on a document and getting a few signatures and does not really add any value in your case, so don not pay it. The letting agent is already fleecing the landlord, so is really just double dipping. Don't let the agent bully you and if they do, get the landlord involved as they will not want to lose a good tenant as it costs them dearly in agent fees (bit of a theme going here with agent fees). Letting fees in the UK charged to the landlord and tenant are out of control and letting agents are really just taking the piss. In most civilised countries these types of fees to tenants do not exist and the fees agents charge landlords are lower, so letting agents in the UK are a big con and just need to be regulated. Have you ever wondered why there are so many letting agents in the high street? Fees, fees, fees!

116
Guest Avatar
MdeB 16th February, 2017 @ 11:02

As the landlord has requested the new contract it seems unreasonable to me to ask you to pay for it (although there is the clause in the contract).
What exactly does your existing contract say about renewal (as it also seems unreasonable to pay for the tenancy to go onto a periodic); it may be that the clause is unfair under consumer protection law.

As a landlord I do charge a small fee (£20) for a new contract if the tenant asks for one, because it does involve some work on my part. My preference is to allow tenancies to run as periodic, as it gives the tenant flexibility to get out if they need to, but if tenants want to commit for a new term, then I will accommodate them.

117
Guest Avatar
bill 11th March, 2017 @ 16:29

Unaware of licence scheme introduction I issued a section 21 notice to my joint tenants as I dont wish to let to the remaining tenant (partner split unable to afford only income DSS) I now find I cant enforce section 21 as not licensed.The tenancy is currently jt periodic the initial 6 month assured tenancy expiring in 2014. Do I have to issue a new tenancy agreement to the remaining partner which ties me to a minimum 6 month tenancy (plus 2 months to give notice) or could I leave the tenancy as it is (periodic jt tenancy) register for the licence then re issue section 21 notice?

118
Guest Avatar
bill 11th March, 2017 @ 19:04

@claire108 im sure if it is a periodic tenancy you can serve Notice 21 without any reason so long as you haven`t contravened any rules/regs re tenancy and you give the appropriate notice which is probably 2 months

119
Guest Avatar
Chris 14th March, 2017 @ 12:56

Hi, hope you can help. I'm a landlord who has a tenant that I like with the existing 12 month contract expiring in mid June. He has indicated to me that he is looking at buying a property but has nothing concrete in place right now, however I would say he is unlikely to want to sign a new 12 month contract when this one expires. Ideally I would want 2 months notice when he wants to move on, as mentioned he's a good tenant and I don't want to stand in his way when he does find somewhere to buy however I would like to be covered as best as possible when he does hand his notice. Am pretty confident in finding new tenants in 2 months. What would people suggest is the best way of covering myself but also having something flexible enough that the tenant would be happy to sign? I've heard about contracts with 2 month break clauses, this on the face of it sounds perfect but in reality don't know how these work or if the paper they are written on is worth anything!
Cheers
Chris

120
Guest Avatar
Nick 25th March, 2017 @ 18:25

One month after my six month fixed term contract expired the letting agent contacted me and told me I had to sign another six month contract. At that point I had just lost my job and luckily got another within 2 weeks so as things were chaotic I did not research this. The agents also charged me a £75 contract renewal fee.
Am I correct in thinking that I should have turned around and told them that as the six month contract had expired I was automatically on a periodic tenancy and by the way you cannot charge me as the same contract terms continue?
It will be interesting to see if they try the next six month renewal before or after this one expires.

121
Guest Avatar
Simon Pambin 25th March, 2017 @ 21:31

Hi Nick,

You're right up to a point: there's no requirement to keep renewing the contract every time. Agents tend to like them because it's easy money. If you do let the agreement turn into an SPT then you lose a measure of security in that you can be given two month's notice to leave, but if the alternative is only a six month contract then there's not a lot in it anyway and, if you're a decent tenant, no landlord is going to be in any hurry to sling you out and go to all the expense of finding a new tenant who's an unknown quantity.

Ultimately, the decision is down to your landlord, though. Some just prefer a written contract every time, although few would think it worth the cost of replacing a good tenant.

122
Guest Avatar
Dee 8th June, 2017 @ 13:50

Hi,
I would like some advice please. I rented a property in November 2016 and, paid all the fees the letting agency asked for after signing the initial 6 month contract. I pay 1550 a month which is kind of steep for the area but, i love the house and it's location so agreed to pay same. I however spoke to the landlord at the time of renting saying i felt the rent was rather expensive. He assured me that he would leave it at that for a few years (no increase). This was a gentlemans agreement with nothing written down.
At the end of the 6 months, (in April 2017) the letting agency sent me a new contract showing an increase in rent by £50 to £1600pcm and, i was asked to pay £240 for the new contract too! I then called my landlord who said he knew nothing of the rent increase and that the agents onlý sent him an email to ask if he was willing to keep the rent same for the next 2 years.
Now i am sort of confused. I don't know who is not being straightforward here. I would like to stay in this house for a few years but then, i do not want to be conned by this letting agent.
What do you suggest? Go on to the rolling contract not signing any new contract? The other option would be to start to search for a new house.
Thank you!

123
Guest Avatar
Stephen 1st November, 2017 @ 12:50

Hi,
Big problem ! I was in a joint short hold tenancy for 12months, initially ending 26th Sept 2017. Landlord invoked a break clause in June & informed us to vacate the property on 26th Aug ( 1 month early). That was legal & we left on 26th August 2017 or so we thought until we all received a 'letter before action' from the landlord on 10th Sept stating that one tenant had decided to stay on in the property after 26th Aug. This has caused the fixed tenancy to roll into a 'tenancy on a periodic basis' ( I understand this to be a periodic tenancy). I interestingly the chap who 'decided to stay on' was not in the property between 28th Aug & 6th Sept which was 10 full days and the landlord 'explained' this by stating in writing that he changed his mind after leaving and returned after 10days thus, she says, creating a 'tenancy on a periodic basis' ( she appears keen to avoid the term 'periodic tenancy'). In her demand for full rent for September she included a deduction for the 10 days in which 'x' was out of the property.
Contact with 'x' produced a different story. He says'yes' he had decided to stay on since he had nowhere to go, that on his return to the property on 27th from a shopping trip to find the locks changed & his belongings on the street. He approached his local council who informed him that his 'eviction' was illegal and this was how he was able to return to the property 10dys later. I understand that 'eviction' in this manner is a criminal offence which migh explain the landlord's attempt to explain the missing days in a different way. Advice from cab & shelter told me forward a 'notice to quit', observing the correct time scales, & I would then have no further liability. My notice became effective on 26th Oct 2017 but the landlord refuses to accept it & states that she will seek ongoing rent from all former tennants until she can remove 'x' through court order ( Says it will take months). I do have legal advice which states that a judge 'should' look favourably on my (our) case but the stress & uncertainty are almost unbearable. The additional 2xmonths full rent is bad enough given that I moved to a flat @£800/my on the day I left the rental. A couple of questions !
1. Did a periodic tenancy ever exist given that 'x' either moved out for 10 days & changed his mind (landlord's version) or he returned to the property following illegal eviction.( On the day following his return (7th Sept) other tenants got an email inviting them to collect their new keys so for sure the locks had been changed) 'x''s story sounds more plausible due to this.
2. If, indeed, a periodic tenancy did exist & given that all rent due has been paid up to the date of the notice, by what mechanism can the landlord continue to 'keep us under the threat of court action' given we seem to have conformed to her demands however questionable they may prove to be.
3. Yes I have encouraging legal opinion ( also expensive) but even it says that it can depend on the judge on the day. How can this be? It's truly frightening.

124
Guest Avatar
Simon Pambin 2nd November, 2017 @ 14:29

Whilst I may have some sympathy for the situation in which your erstwhile landlady finds herself, it seems to me that, by her own actions, she has brought your tenancy to an end. She gave you notice, you all left (albeit perforce, in the case of one tenant), and she has acknowledged as much by not charging you for the ten days before the one tenant moved back in. I don't know what she's inadvertently created as a result, but it can't be a statutory periodic continuation of the existing tenancy, as far as I can see. Having said that, I'm not a lawyer!

125
Guest Avatar
Stephen 3rd November, 2017 @ 13:03

Simon,
Very pleased that you took the trouble to respond. Which Legal are currently studying all the docs & communications having raised exactly the same points made by yourself. They said that the rents paid for Sept & Oct may not have been required as the tenancy may have been terminated by the absence of 'x' from the property for 10 days & like yourself irrespective of the true reason for his absence. We offered by email to 'take the hit' of the rent for Sept& Oct provided she accepted that the tenancy was now at an end. She has declined !
Everyone else agrees that my served 'Notice to Quit' was correctly actioned & legal so I don't know what she's up to other than trying to squeeze rent from us which will not be flowing in as long as 'x' occupies the property. I have hearsay information that this lady is a member of the legal profession which has stricken fear into the other co tenants. If true is this fitting behaviour for a legal professional?

126
Guest Avatar
Stephen 4th November, 2017 @ 10:50

Following my most recent post, I can now confirm that I'm truly on my own. As predicted my last remaining ally in the above dispute has now deserted & moved back into the premises on Sun 29th Oct. In order to explain why he was the last one standing, I need to fill in other info about this 'tenancy from hell'.
This 4 person joint tenancy started on 27th Sept 2016. In Feb 2017 the lead tenant moved out and found his replacement 'R'. Landlady asked me to become lead tenant which I agreed to as no one else wanted to do it. As well as appraising me of my new duties the landlady told me that she had just discovered that tenant 'x' had not paid his rent for the first three months of 2017. I asked if she expected me to do something about it, to which she replied:- 'No, leave it to me to sort out'.
Next event @ end of March 2017 female tenant 'RA' moved out without finding a replacement
In July 2017 Landlady informed myself & 'R' that if she could not trace 'RA' then we were liable for her rent arrears (4mts) but also that 'x' had continued to default on his rent & we were now liable for his rent also (6mts). She had also invoked a break clause allowing her to end the tenancy one month early (26Aug 2017).
'R' and myself left as dictated on 26th Aug believing that 'x' had also left.
We received a 'Letter before action' on the 10th Sept stating the following:-
'X' had left the premises on 27th & changed his mind & returned 10 days later. This, she said, meant that the tenancy was 'continuing on a periodic basis' & ' All tenants were liable for rent on an ongoing basis 'til she managed to remove 'X' from the premises.(could be end of year).
In addition we were all jointly liable for rent arrears of both 'X' (9mts) & 'RA' (4mts).
Given that only 'R' & myself were actually paying, it fell to us to pay the arrears which we did.
CAB & Shelter advised that the only way to end this 'periodic tenancy' was to forward 'Notice to Quit' observing correct notice period etc. I done this & the tenancy end date was 26th Oct 2017. Land lady is not accepting that the tenancy is ending & has sent further demands for full rent. I joined WhichLegal who are in the process of reviewing the case.
As you can imagine this is a rare 'can of worms'. Both 'R' & myself are already over £5000 out of pocket each & if the landlady is somehow proven lawful then financial ruin beckons. 'R' in the light of hearsay info, has decided to move back into the premises whatever advantage he believes this will give him. I, In my new flat & £800/my cannot even think along 'R's lines.
Can anyone offer any lawful or logical reason why this landlady believes that she can hold 'R' and myself accountable for ongoing rent given all of the above circumstances. Should it go to court there are additional matters which will be highlighted which will not show the landlady in a favourable light inc broken window catch leaving the building insecure which she refused to repair due to cost plus other more minor items which reflect badly on her general demeanour.

127
Guest Avatar
Dean 22nd November, 2017 @ 22:20

My son is renting a property on a 12 month minimum term shorthold tenancy agreement which is due to expire at the end of the week. The agreement allows for the monthly periodic tenancy to kick in if the tenant decides to stay past the 12 month minimum term date. However, the agreement does not indicate a notice period to end the agreement to be given apart from within the first 3 months and for when the agreement becomes periodic. Therefore we interpret this agreement as being silent for any notice to be provided should the tenant decide to vacate the property at the end of the agreed 12 month minimum term and they can do so without having to provide notice. The landlord is disputing this and it stating that he is obligated to provide a months notice. Is she right?

128
Guest Avatar
Sophie Davis 3rd January, 2018 @ 15:08

My tenants are looking to buy a house and so want flexibility in their contract which is coming to an end. We'd previously had a break clause that kicked in earlier in their contract but they want the two month notice flexibility from the start of the contract.
If we allow it to become a periodic tenancy and don't resign a new contract will it keep the two months notice period stated in the contract even though they pay per calendar month? Or can they legally just give one months' notice? Thanks for any help!

129
Guest Avatar
NiceLL 10th February, 2018 @ 05:43

I'm a nice(?naive) landlord. Tenants have been in the neighbouring house since 2012. We both send each other food etc. I could see they were a young family and struggling at times to pay so didn't have heart to increase the rent. Past 2yrs tenant has been missing payments & then paying later ( at a mortgage cost to me). Family inform me that tenant has a gambling problem (explains why i would get a text saying he'd come with rent then a no-show).We spoke abt how to allow council to pay me directly which they agreed but then reverted back again (wife set it up, hubby cancelled it). So once again chasing rent myself. They are on a periodic contract. I have asked them to leave or pay a higher rent (A becoz they are paying way below market value & B I need to increase rent due to daily mortgage charges&financial changes in my life). The rent increase is still below market rate. I wanted to serve Section21 but I'm worried as I didn't put their deposit in a DPS. I don't want to give another new 6m AST but if i did give new 6m AST, could I put rolling deposit into a DPS now? Tho he said he wouldnt sign it unless it was for 5yrs! Can I serve section21 & return deposit without being at risk of tenants claiming 2-3times the deposit? Im guessing if they refuse to move i will then have to serve section8 :(

130
Guest Avatar
Simon Pambin 10th February, 2018 @ 18:34

You're on the hook for a sanction of 1-3 times the deposit for each tenancy if your tenants decide to sue you, no matter what you do, so you may as well get the deposit protected asap and issue the prescribed information, as well as any other paperwork (such as the gas certificate where relevant) that you need to have in place before you can issue a valid Section 21. If you haven't got it all in place before you issue the S21, then it won't be valid, and you'll be another two months down the road and no closer to getting your tenants out. Given that they're not actually two months in arrears, I presume you'd be seeking a Section 8 on the basis of persistent lateness? That's not one of the compulsory grounds so can turn out to be bit of a lottery.

131
Guest Avatar
Kelly 13th February, 2018 @ 19:06

I have rented a commercial property for the last five years, we haven’t had a signed contract in place for the last 2.5 years due to damp problems at the property which we have tried on. Numerous occasions to resolve. My business partner has left because of the problems we are having and i have to leave the property because i just cant run my business from there any longer. I spoke with my landlord today who agreed to let me leave on the 04/03/2018, this conversation was then followed by an email telling me that he now doesnt agree with the verbal agreement and that i have to give three months notice. Is my tenancy now legally a periodic contract (rent paid monthly) as there are no roll over clauses or any other clauses to say anything other? So confused, I am leaving a great business because of the premises not being suitable and my landlord is threatening me with court action if i leave. Any helpful advice would be fantastic.

132
Guest Avatar
Reanne 15th February, 2018 @ 18:04

Hi, I wonder if anyone can help. I had a fixed term tenancy of 12 months which was then extended by 6 months (another fixed term) at the end of the initial 12 months with me paying £120 for the privilege of staying as well as them upping the rent.
The 6 month fixed term is up in March and I want to go onto a 1 month rolling contract to have more freedom in finding somewhere else - can my landlord/agent legally refuse me this and strongarm me into another fixed term agreement? Many thanks

133
Guest Avatar
Simon Pambin 15th February, 2018 @ 18:20

If you don't sign a new fixed term agreement then the tenancy becomes a statutory periodic tenancy by default. Your landlord can't force you into another fixed term but can end the tenancy on two months' notice via a Section 21, so it's really just a question of whether you're prepared to take the risk of having to find somewhere new at relatively short notice if the landlord gets the hump and decides to replace you with a longer-term tenant sooner rather than later.

134
Guest Avatar
TQ. 13th April, 2018 @ 20:10

Hi, I wonder if someone can help. We are close to the end of my tenants 1 year contract with 6 month break clause. I ask them if they want to renew the contract for another year and they say that were sure that during the viewing I confirmed them after the first year we were going on a periodic tenancy. This is not true but I'm sure it's been only a misunderstanding and so far they seem good tenants, but as I never used before the periodic tenancy I am a bit concerned of applying it without signing anything and I don't like the idea of a short notice of 1 month (as they pay the rent monthly). Do you know if it is possible to sign and new AST contract without the breaking clause of 6 month,only including that both parts need to give a notice of 2 month to leave?

135
Guest Avatar
vinny 14th May, 2018 @ 19:16

I have a tenency of will for land i rent the owners have gone bust so my agreement has not bin renued. For 2 yr there is no actually end date the insolvency company not saying nothing what are my rights

136
Guest Avatar
djchick16 30th May, 2018 @ 18:20

Hi there :)

I don't know if anyone can help me but I'm hoping someone can. Me and my husband are in a very bad situation. Until yesterday we both worked for the same small company (I was dismissed yesterday but am taking legal advice for unfair dismissal) My husband is there but today the boss has done certain things that probably amount to unfair dismissal), however he is also our landlord. We have been renting one of his houses since April 2015 and signed an original AST which was for 6 months I think (We never received a copy) It then reverted to a periodical and we were paying the same rent until 2 months ago when he decided to increase it by 125 pounds a month. We were not given a section 13 and nothing was put in writing, we just started paying this amount. He has now informed us that he is giving us 3 months notice to leave I presume by section 21 but we haven't received this yet. Also we never paid a deposit, no inventory was done and the gas safety lapsed on the 10th May 2018. My question is will the section 21 be valid?

Thank you for any help

137
Guest Avatar
Claire 13th June, 2018 @ 13:41

Hello
I am asking on behalf of a friend. She has a 6 month fixed term agreement back in 2016 which has never be renewed but just agreed that it has rolled on every 6 months. She paid her last 6 months upfront rent in April and is now moving to be nearer to her family. She has been advised she can give one months notice but they will not refund any of the extra rent she has paid to cover her rent until end of Oct? Can the estate agent do this as surely she should is allowed to give 1 months notice i.e. leave end of July she should get Aug, Sept and October months she paid upfront refunded to her.

138

Please leave a Comment...

Nobody

Nobody

Landlord

Landlord

Tenant

Tenant

Agent

Agent

Legal

Legal

Buyer

Buyer

Developer

Developer

Enthusiast

Enthusiast


Your personal information will *never* be sold or shared to a 3rd party. By submitting your details, you agree to our Privacy Policy.

Popular Landlord Categories