Creating a Contractual Periodic Tenancy

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    Creating a Contractual Periodic Tenancy

    I wonder if anyone has a view on this scenario we find ourselves in.

    Tenants are in place and are coming up to the end of the 12 months fixed term. The AST Agreement states:
    1. If you stay on after the end of your fixed term, your tenancy will be converted into a monthly tenancy which will run from month to month, starting on the day after your fixed term ended (this is called a periodic tenancy). You can end this periodic tenancy at any time by giving us not less than one months notice in writing, starting on the next payment date.
    So, as I interpret it, the AST becomes a Statutory Periodic Tenancy after 12 months.

    How do I create a Contractual Periodic Tenancy if there was no provision for it in the original AST? Can we create a new AST and ask the tenants to sign it, containing clauses pertaining to Contractual Periodic terms? Obviously it will be an extension to the original AST, so no minimum 6 or 12 month term in it. Would that be valid to do it in this way?

    Or have we effectively missed the boat as it wasn't provided for in the original AST, so we'll just have to chalk it down as lesson learnt and make sure our templates are correct for the next tenant?

    thanks



    #2
    Only a judge can decide if anything purporting to be a CPT is or isn't.

    You can create a new agreement but tenant does not have to sign nor agree to any particular changes.

    Offering a tenancy at lower rent is more likely to be signed !
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      You can create a new tenancy document and ask the tenants to sign it.
      But there's not much incentive in it for them to do it without a further fixed term, or unless the terms are more favourable to them.

      The only benefit I can think of is a longer notice period for the tenant (which isn't really a plus for them).
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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        #4
        Thanks both. Yes, have thought of creating some sort of benefit for the tenant to move them down this path. It's a tricky one, as no-one wants to reduce rent!

        The benefit for a landlord, as has been discussed in other threads, is the limit of liability for Council Tax should a tenant move out without a notice period.

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          #5
          Yes, but ONLY if it is a CPT. How would you ensure it is a CPT?

          Frankly the cost of council tax for a month or two is neither here nor there in the profitability of lettings.
          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

          Comment

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