Rolling tenancy - any problems?

  • Filter
  • Time
  • Show
Clear All
new posts

  • Rolling tenancy - any problems?

    I have some tenants living in a property I rent out. They've been there for 3 1/2 years now. The first year they rented through two six month contracts, paying the rent in advance as they have a CCJ and couldn't pass credit checks.

    When the second contract ended they could not pay the next six months upfront, and asked if they could use a guarantor to stay on and pay monthly. To cut a long story short, the agent handling the contract advised me against keeping them as tenants and refused to issue a new contract. However, her colleague recommended I simply let them stay on on a rolling contract.

    And that is exactly what I have done. They're good tenants, always pay the rent (which has remained the same), maintain the property, rarely need any work done, and we enjoy a friendly relationship. They have no plans to leave the house and I have no plans to sell.

    However, a friend mentioned yesterday that after a certain period of time on a rolling contract, tenants can acquire rights - such as the right to remain in the property for life at a set rent. Is this true? And if true or not, are there any precautions I should take? Is it not a good idea to continue with a rolling contract long term?

    Thanks in advance for any advice.

  • #2
    "Friends" are seldom wise!


    • #3
      Is tenancy an AST for a residential property in England or Wales?
      The information in my posts is provided 'as is'. This is not intended to be legal advice. Legal or other professional advice should be sought before acting or relying on this information or any part of it. I will not be held responsible for loss or damage arising from errors in the information or the way in which a person uses the information on this . For more information on your query use the '' link at the top of this page. Agreements, Forms & Notices can be found .


      • #4
        Originally posted by cahaya View Post
        I simply let them stay on on a rolling contract.
        Does this mean a statutory periodic tenancy under s.5(3) of the Hosuing Act 1988?
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).


        • #5
          Assuming this is an E&W tenancy that has moved onto a periodic tenancy, I would only be wary in regards to notice period, but otherwise with good tenants, its a reasonable state of affairs.

          As they paid 6 months in advance on their previous fixed term tenancy, this is counted as "the term". Term is based from the period for which the tenancy is paid for on the last fixed term agreement (in this case 6 months). A section 21 notice for periodic tenancies therefore would be 6 months from the expiry of the CURRENT 6 Month Term

          If it has been 3 and a half years, that would indicate a term has just finished so if you wanted to ask them to leave, it could be up to 11 months before you can legally do so (short of them causing a major issue worthy of a section 8 notice).

          The periodic tenancy in this case is possibly a little risky, as if they take advice legally for whatever reason they may become aware of this.

          However, your friend is wrong about the tenant acquiring additional rights beyond the terms of the last fixed term agreement, but regardless of the friendly relationship with them.
          I would perhaps suggest getting them onto a new fixed term agreement with the rent being paid monthly so that when they go back to a periodic tenancy you have more flexibility should you wish to issue notice, which would be 2 months.

          But good tenants are worth keeping, and there are a multitude of innocent reasons for people to have a CCJ and their record is good.
          If I am offering advice, I am doing so purely because I think I know the answer and would like to help, but... and its a big but, I do occasionally get things wrong, as anyone does.

          So please don't sue.


          • #6
            NoMoreFaith, That depends on whether the rent reserved is stated as monthly or six-monthly (bi-annual, semi-annual) in the tenancy agreement. The question has not yet been asked.

            Cahaya, If the main thing you are worrying about is whether your tenants will gain additional rights by their length of stay, the answer is no if the tenancy is an assured shorthold tenancy or has become a statutory periodic tenancy. What was your friend thinking of, scaring you like that? I hope that friend is not affiliated with the property industry.


            • #7
              Thanks so much for all your replies. The contract was the 'usual' 6 month contract issued by letting agents (sorry, am unable to be any more technical than that!). The 6 months rent in advance did not change notice terms, it was simply in lieu of monthly rent. My tenant explained the CCJ, and I am quite happy with the circumstances.

              I have no wish to evict the tenant - quite the contrary! But I was just scaremongered by my friend (who clearly knew nothing...) and wanted to know if I needed to do anything to protect myself. Thanks to all your advice here, I am happy now that we can continue on as we have been. Phew!


              • #8
                Oh and Poppy - no, the friend is not affiliated with the property industry exactly... it was a building contractor friend. I'll be sure to put them right so they don't scare anyone else!


                • #9
                  Naughty friend. Tell 'em to stick to bricks!


                  Latest Activity


                  • Help re flatsharing legal position!
                    Hello, I moved into a friend's flat when she moved out of London last year. It was agreed that I would pay market rate, would not need to pay a deposit, be able to bring various items into the flat, work from home, have a certain amount of storage etc.etc. I was also to share with my friend's then...
                    24-07-2017, 13:18 PM
                  • Reply to Help re flatsharing legal position!
                    I'd find somewhere else and move out.
                    Let your friend deal with the problem.

                    If your flatmate threatens you or to destroy your goods, report them to the police (call into the station and put it on record - you might get lucky).
                    If they actually do any damage, call the police...
                    24-07-2017, 14:42 PM
                  • Non- protected deposit, and disputes
                    Q1 – Where is the rented property located? England

                    Q2 – What type of Tenancy Agreement (TA) is this? Multiple tenants (a couple) - one tenancy agreement

                    Q3 – What date did current TA start 01/11/2016

                    Q4 – How long was initial fixed term 6 months
                    24-07-2017, 12:25 PM
                  • Reply to Non- protected deposit, and disputes
                    If you served a s21 notice, it isn't valid because the deposit wasn't protected.
                    You need to "return" the deposit in full to the tenant (or agree to use it in lieu of rent, or agree the damage) before you can serve notice under s21.

                    Your tentants can sue you for a penalty...
                    24-07-2017, 14:37 PM
                  • Reply to Help re flatsharing legal position!
                    Many thanks. It is only a verbal agreement (like so many flatsharing agreements are) with two months notice either way and that I would be given certain storage (some of which the Hungarian has nabbed), that I would be able to work from home, get a cleaner and bring items into the flat ie television...
                    24-07-2017, 13:56 PM
                  • Reply to Help re flatsharing legal position!
                    The only thing that matters is your contract. What contract do YOU have (not what Emma has signed with someone else)?
                    24-07-2017, 13:43 PM
                  • Reply to Non- protected deposit, and disputes
                    Unfortunately (I know its not going to be what you want to hear), I suggest you will have to chalk this one up to experience. Without an inventory you are up the proverbial without a paddle I'm afraid. In the grand scheme of things the damage you have described is very slight (bar perhaps the carpet)...
                    24-07-2017, 13:04 PM
                  • Landlord: When will I get a bailiff date?
                    I'm so sorry if this has been asked before, but for some reason I am unable to search the forum as it's not bringing up any results.

                    I know the eviction date will vary depending how busy the local courts are. My local court has indicated 6-8 weeks.

                    My solicitor submitted a...
                    24-07-2017, 12:04 PM
                  • Tenant's energy debt.
                    I am a landlord of a 2 bed end terrace, the property is owned out right. I am registered Disabled and this was the main reason I decided to rent my property out. As it was not a suitable property for my Disability. I would have to make some major changes that would devalue my property like installing...
                    20-07-2017, 22:08 PM
                  • Reply to Tenant's energy debt.
                    The deemed contract is with the owner or occupier and commences when gas is supplied.

                    There's no obvious hierarchy of owner/occupier and, while there are references elsewhere to the owner being liable for things when the property is unoccupied, that isn't reflected in the deemed contract...
                    24-07-2017, 11:47 AM