new to tenancy agreements

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  • new to tenancy agreements

    I am a new landlord, and have 2 flats on assured tenancy agreements of 6 months. The 6 month period is now coming to an end. The tennants are good and I need to know what I need to do next. There is a 1 month notice period clause in the contract.

    Do I need to organise a new contract or does the agreement stand still - may sound a stupid question and apologies if it is. Was not sure which was the best cover for both landlord and tennant


  • #2
    The tenants do not have to give any notice to leave at the end of the fixed term, you need to give 2 months notice for them to leave. At the end of the fixed term it will become a periodic tenancy with the same terms of the fixed term tenancy (month to month if the rental period is monthly) or you can create a new fixed term tenancy.


    • #3
      Dear Bytor - the easy way is just to contact them, remind them that their agreement is coming to an end and ask if they want a new one. If they do, write it out and give it to them to sign. It can be for any period you choose. If they are good tenants then you may want to offer them a 12 month agreement. Although I stick to 6 month agreements just in case they change! I personally think it is better for both tenant and landlord to have a new fixed agreement. I raise my rents every year by a small amount when I offer the new agreement. It seems to work fine. If they say they will be leaving in a few months, then you have the choice of letting it roll on and become periodic or give them a short tenancy agreement. Hope that helps. Susan


      • #4
        I tend to think allowing the tenancy go into a periodic tenancy is the best way forward. You are still protected by the original terms of the AST, but with the added benefit of being able to issue, or invoke a S21 at any time without the contraints of the end date of the AST. Its not unknow for tenants to become unemployed and you having to follow the laboureous S8 route. You can still raise the rent btw.


        • #5
          I would disagree with susan personally. Unless there is a real need to do so, I would suggest just leaving it.

          Basically, if you do not arrange a new AST agreement, then your tenants go onto what is called a periodic tenancy. You can do either. Periodic basically means the original contract is extended on a month by month basis(doesnt really, but this is the easiest way to imagine it). Unless there is something you wish to change in the AST terms, or you particularly want to tie down the tenant again for 6 months(which bear in mind they may not want to do), then it is easier, and more flexibile, to merely keep the status quo.

          Out of interest, you say that your AST has a 1 month notice period term in it. I hope that this is for the tenant, and not for you as the landlord, as such a term would not be valid unless negotiated seperately from the AST. Such a term would not permit you as a landlord to give a tenant one month notice.
          Any posts by myself are my opinion ONLY. They should never be taken as correct or factual without confirmation from a legal professional. All information is given without prejudice or liability.


          • #6
            Follow Dazalock's advice, it is safer for you and if the tenant continues to pay the rent and abide by the tenancy agreement, makes no difference to you or them.


            • #7
              Dear Dazalock - Could clarify something for me then. First what does btw stand for? Probably something absolutly obvious! I think from your comments, I must have the wrong idea. I thought you could only raise the rent when a new AST is signed. Which is what I do. I increase them yearly by a small amount. As so far none of my tenants has refused the increase I'm happy. But I do agree with you that not having the bother of issuing new agreements is easier. If you have a periodic tenancy how do you raise the rent. I have been very lucky so far, in that I have only once had to issue a S21 and was a long time ago. I suppose thinking about it, the reason I always renew agreements, is because we include bills and council tax in the rent, and of course they are always going up. Our flats are self contained studio and 1 bed flats, in big old houses. So including bills has been the easist way. Best wishes Susan


              • #8

                Originally posted by susan 2
                First what does btw stand for?
                Well AIUI, it's "By the way" (IIRC).


                • #9
                  Susan. Have you not heard of using the Section 13, Form 4B route to raise your rents? It's a very powerful marketing tool, and you don't need to keep drawing up new AST's each time. The tenant has 28 to reply and if they don't the increase is autmatic. If they do appeal you're at liberty to serve a S.21 Notice.

                  You can only use this method after the tenant has been in residence for 52 weeks. It's considered onerous to raise rents more often than annually, but it's not illegal. It leaves the opportunity open for the tenant to appeal against the raise, which they are much more likely to do if it goes up after only 6 months.
                  The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.


                  • #10
                    Thank you gentlemen for your words of wisdom. Eric you will have to forgive me - I haven't even learnt to text yet, to the dispair of my children. However one is never to old to learn.
                    Paul - no I had not heard of that particular form.Many thanks for the clear explanation. I only ever raise the rent annually. As the increase is usually only 50p to £1 a week nobody so far has complained. I'm in the lucky position of having paid off all my mortgages!


                    • #11
                      Yup, all of the above, init.

                      gtg brb.


                      • #12
                        A big thank you to everyone who has responded...I am pleased that it raised a good debate. A lot of points for me to consider...probably the leave it alone route sounds best and let it go into periodic.


                        • #13
                          Form 4B

                          Whilst this thread was about expiry of a term, can I just pick up on what Paul F said.
                          I've never heard of this form before but it seems that it would be very useful. It could cut out a chunk of paperwork. Can someone point me to where I can find out more. I've usually done what Landlordzone says at and sent out S21 notice and new agreements.


                          • #14
                            I believe this is the form to which you refer.


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