Scenario with a tenant not signing.

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  • Scenario with a tenant not signing.

    Hello there

    Would someone be kind enough to highlight my options in this scenario, with my tenant and agent?

    1. My tenant signed a 6 month agreement in April, through an agent
    2. In Sept, the agent confirmed the tenants wanted to continue with monthly renewals only, when their agreement finished in October, as opposed to signing anything longer
    3. I declined that but offered a minimum of a 3-month contract
    4. I've had no word either way yet, even though we are still receiving funds from the tenant - the agent is chasing them for a signature, apparently.

    I would rather search out some tenants who were looking more long-term and I feel like they're getting their monthly renewal by default now, by not signing.

    Is this normal or is it out of order? We're based in sunny NZ, so we're somewhat powerless over here.

    Thank you.


    ..I posted this on the agents forum - but no-one really looks at that, it seems.

  • #2
    Replied in other thread, but in summary...

    Why would they sign, there is no need. It probably has nothing at all to do with them being short-term tenants. Signing means they have to plan their lives in 3, 6 or 12 months blocks and they probably also have to pay an "extension fee" of about £100! If you want to force them to sign then issue a S21 that you will withdraw when they do. But why upset them?


    • #3
      They are now in a Statutory Periodic Tenancy which is simply a continuation of the original conditions. Let them stay on, next time, if you want long term, ask for a longer contract but you will find that most landlords prefer six month initial terms and then let the tenancy continue as a periodic one. The reason is that it is easier for the landlord to get rid if necessary.


      • #4
        TenantZone, MrWoof - thanks. That's good info.

        Maybe I'll adopt this approach, when I'm next a tenant I've always signed on the dotted and had expected to make a commitment, for x amount of months, when approached by the agent at renewal time.



        • #5
          As a tenant you may have trouble. It is the standard policy of a number of agents to issue a six month AST with a section 21 notice and then about four months into the tenancy offer to renew for a further six months and, of course, for a renewal fee charged to both landlord and tenant. Altopugh this is totally unnecessary, it helps such agents make more money, particularly as their landlord clients assume they know best when it comes to L&T matters.
          Unfortunately no qualifications are needed to set up in business as a letting agent and some of them have very peculiar ideas as we often read here.

          Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.


          • #6
            A new 3 months fixed term would mean of course that you as tenant could remain in the property for another 6 months and the landlord could do nothing about this. (Also posted this reply in the lettings agent thread by the same poster)
            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.


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