Agent ignoring periodic option

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    Agent ignoring periodic option

    My last tenant stayed for about 7 years, the last 6 being a periodic tenancy.
    I haven't asked the current tenant but in view of his circumstances I think he will want to stay on at the end of his 1 year tenancy.
    I've now received the following from the Agent, abbreviated to just the relevant bits.

    As you know, the Tenancy Agreement on the above expires on 27 November 2019, and we would be pleased if you would confirm whether or not you wish us to extend the Tenancy Agreement for a further period. It may be that your present tenant may like to extend the tenancy, but if not, we will advertise your property to re-let should you so wish.
    Your prompt reply will be appreciated. In the event of you not wishing to extend the tenancy, we are required by law to give your Tenants no less than two months’ written notice. A delay in issuing notice could mean that your Tenant’s vacating date could fall beyond the current end of tenancy date.

    I'm puzzled; they seem to be saying that unless I extend the tenancy (~£200), 2 months before it expires, they will serve notice on the tenant.
    My questions are;

    - can an agent give notice to my tenant? Required by law, they say??
    - why no mention of the periodic option, which is what I want?
    - does the tenancy automatically convert to periodic if neither me nor the tenant take any action?

    Thanks for advice.

    #2
    The agent is either out to maximise their fees (most likely) or they just don't know what they are doing.

    1. Agent can give notice to tenant on your behalf. What they mean by the 'by law' part is that IF you want the tenancy to end with the fixed term then notice must be given at least two months prior to that.

    2. They haven't mentioned periodic either because they do not make additional fees from conversion to a periodic tenancy (most likely) or because they don't understand what happens at the end of a tenancy.

    3. Yes, if no action is taken then the tenancy will become periodic.
    There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

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      #3
      Thank you doobrey. Agent must be trying it on which is disappointing as they have served me well for many years.

      Comment


        #4
        Just tell the agent that you do not wish them to serve notice and that they should not do so.

        I would (personally) ask them to advise you which law requires them to serve notice, because it's something you have never heard of and would be extremely concerned to find that you had been lied to.
        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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          #5
          I get this from my agent -branch are great, hq are hard work. Just write back stating.you want the tenancy to become periodic at no charge, and are aware of the notice requirements.

          They play on the possibility that you are clueless.

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            #6
            The letter from the agent doesn't seem to say they will automatically issue a notice without you telling them.

            They are simply trying to suggest you to either extend the tenancy or re-let, which of course will be in their interest as it will provide them with extra fees.

            If you want peace of mind simply write back saying you want to leave everything as is. Of course I would assume the tenant also got a similar letter asking them to ask for the tenancy to be extended, whether they take the "bait" will be another question.

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              #7
              The letter is inaccurate and is designed to make you do something you don't need to do in order to enrich the agent.
              That's fraud, not "acting in their own best interest".
              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


                #8
                I would guess in order to mitigate the effects of the Tenant Fees ban your agent is looking to find ways to make extra money eg by charging for a new tenancy.

                The Statutory Periodic Tenancy is created when neither tenant or landlord do anything so I would just tell the agent you want it to roll on and not to do anything else as neither you nor your tenant will be paying fees for a new agreement.

                Comment


                  #9
                  Originally posted by oakhill View Post
                  Agent must be trying it on which is disappointing as they have served me well for many years.
                  I have had the same thing myself - more than once - and my thoughts were much the same as yours.

                  If it was done deliberately (which seems highly likely) then it is just dishonest. It is failing to act in your best interests. It could of course be some individual member of staff who doesn't know what they are talking about, and not representative of company policy. Either way, not good.

                  An agent should be contributing knowledge and experience, guiding the landlord who may not know much about letting property. All too often it is the other way around.
                  There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

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                    #10
                    You need to ensure that agent will do all the paperwork associated with the spt, such as
                    • continue deposit protection
                    • issue How to Rent guide
                    • possibly more (I use contractual periodic to avoid the hassle)

                    Comment


                      #11
                      We have had this issue countless times with one agency only. We use them as a tenant finder only and manage ourselves. They frequency send out letters alarming the tenants. Following the latest they have emailed us to say that under new rules if the tenancy is periodic and the council tax is in default, the council will come after the landlord Am in the process of checking this out. Has anyone else heard this?

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                        #12
                        Originally posted by Karen View Post
                        Following the latest they have emailed us to say that under new rules if the tenancy is periodic and the council tax is in default, the council will come after the landlord Am in the process of checking this out. Has anyone else heard this?
                        You can always ask them specifically what new rules. Ask them to cite the actual legislation.

                        Council tax liability is set down in law. It doesn't change based on whether a tenant is paying or not. Assuming not council tax HMO (i.e. multiple tenants on separate contracts), generally the tenant is liable so long as they live there as their main home and with no live-in landlord. For a SPT where the period is less than six-monthly however, the tenant's legal liability ceases when they move out even if the tenancy is still continuing.
                        I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

                        I do not answer questions through private messages which should be posted publicly on the forum.

                        Comment


                          #13
                          Originally posted by KTC View Post
                          You can always ask them specifically what new rules. Ask them to cite the actual legislation.
                          Agreed ; good idea. Having it in an email helps because it is there in black and white. Persist, and if you get fobbed off, escalate the query. If agent has made such as assertion they should be able to justify it.
                          There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

                          Comment

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