Thinking of going periodic..

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    Thinking of going periodic..

    Hi I have a tenant who looks after the property and pays her bills on time. She seems quite invested in the property (has done up the garden etc).

    Coming up to the end of first 12 Month AST in Mid July. Renting terraced house in London

    She is an EU National.

    I'm thinking of going period if she agrees, simply to avoid paying the Agents renewal fees.

    I've read the five year old article here - https://www.landlordzone.co.uk/infor...riodic-tenancy

    Are there any steps we should both take before allowing this to go periodic? What do we need to do with the deposit? Any strong recommendations either way since the article was written?

    Thanks



    #2
    I always have my ASTs go periodic after the 1st year, i simply prefer it this way, i don't wish to keep a tenant in my property if they don't wish to be there, its not good for them and the property being looked after properly. In regards the deposit..... i understand you need to re-issue all the PI information to the tenant (i don't take deposits). I understand there is nothing to massive which needs to be done other than explain what periodic means to the tenant as most do not know.

    Comment


      #3
      You don't need to issue the prescribed information again.

      I'd explain your reasoning to the tenant simply so they don't feel insecure.
      I also let all of my tenants go periodic (currently they all are), none of them have ever asked for a new tenancy (possibly because of agents fees) and I explain to them all that this is what I do for a living and that it's unlikely that I'd ever want to evict a reasonable tenant.
      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).

      Comment


        #4
        Yes i agree with above, i find that tenants who come from other landlords expect me to want them to sign another AST and also expect they will need to pay fees again..... so they are nicely surprised when the lease simply carries on with no financial cost to them,

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          #5
          I now have tenancy agreements that say that the tenancy continues as a contractual periodic tenancy, so that no new tenancy arises and I do not have to worry about failing to something that is required at the start of a new tenancy.

          Comment


            #6
            Thanks everyone for the feedback - the (high street) Agent wants 6%+VAT - which is almost one month rent - and the tenant really does like to look after the place . This is my only rental income - and my understanding is there is still good demand in S London in case she did want to leave. The property is close to the main-line station so I think rents out relatively easily should she decide to leave.

            Comment


              #7
              You'll probably be fine, although rental demand is definitely lower in the capital than it was a couple of years ago.

              Check your Agent isn't going to try and charge you a fee for letting the tenancy go periodic. Not unknown!

              Comment


                #8
                Thanks I checked with the agent - both on the phone and looking at the fees in the contract.

                On the phone they said there is no fee for going periodic (I asked several times) but I've just re-read the contract and it says :

                Tenancy Renewal

                "Where the Landlord has not selected the Agent’s Management Service, a fee will
                continue to be payable by the Landlord to the Agent where the Tenant remains in the
                Property beyond the Term of the Tenancy Agreement, as described in the Fee section of
                this Agreement. Such a fee will also continue to be payable by the Landlord to the Agent
                should the Landlord negotiate a renewal or extension of the Tenancy directly with the
                Tenant."
                [ME: Note this does not say periodic here?]

                Fee Section:

                Extension of fixed term onto a periodic tenancy is subject to the Agent’s minimum fee (applies to letting only and rent collect service) - £690

                [ME: Does this wording cover a AST becoming periodic]

                Now one of my acquaintances (who is a letting agent for an online company) also said, if either of us really wanted another fixed term, we could go periodic and then draw up a much cheaper 12 month AST with a different agency?

                Comment


                  #9
                  A periodic tenancy is actually a new tenancy, so you're not (technically) extending anything.

                  You almost certainly can't simply switch agents - there will be wording elsewhere to either stop you doing that or confirm a fee for such a change.
                  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).

                  Comment

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