A contract renewal but want to switch to a rolling on monthly basis.

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    A contract renewal but want to switch to a rolling on monthly basis.

    Hi Guys,

    My 12 months contract is ending in 2 months (beginning of August). The letting agency called me today to tell me about that and that the landlord is happy with us and also that she would like to re-new the contract, however with £50 increase (from 870 – 920) as the letting market went up – apparently.

    I said to the agent that I will have a word with my wife and will get back to him.

    The problem is that we don’t want to re-new the contract for another 12 months but on a monthly rolling basis. Do you think it will be ok to get the rolling on monthly basis contract with one-month notice? How to deal with it, as this is a must for me - the one-month notice.
    I wrote something like this, do you think this is ok or should I re-word it?

    “Dear…

    Hope you are well.

    I have discussed with my wife the new contract and we would like to renew it but on a monthly roll-on basis. We lived in the flat for 12 months, and we are expecting to stay for another 12 months, however we think that the contract on a rolling on a month to month basis would be better for us right now.

    Also, we think that £50 is bit too much and we can agree on £25 which would put the rent to £895.

    Please let me know your thoughts, ..”

    Thanks guys!

    #2
    Then you are saying you DONT want to renew and you want to let the tenancy go into a statutory periodic tenancy (SPT). Perfectly OK as long as the LL is happy with that. He cant force you to renew but you cant force him to accept the SPT. Obviously the LA get a fee for a renewal and they might be happier if you renew. In the end they work for the LL and its the LL who decides. The rent increase is also a matter of negotiation between you and the LL. He might be OK with £25, or not. I think anything in the 0-£50 range would not surprise me in your case, £50 (5.7%) being a bit steep if your current rent was a fair market price 12 months ago

    Bear in mind that this also gives the LL the option of giving notice to terminate in 2 months.
    All views posted reflect my personal opinion only and do not constitute professional advice which I am not qualified or knowledgeable enough to provide.

    Comment


      #3
      Even if your LL does not agree to your terms, a statutory periodic tenancy will arise by default if you do not move out or sign a new fixed term agreement. To end that tenancy the LL would have to serve 2 months' notice and if you still do not vacate, obtain a court order.
      'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

      Comment


        #4
        Thanks for the answers.

        Bdw. In the current contract I have a point which states that I can give 2 months noticed after 4 months. If I sign a new contract, would this mean a totally brand new contact, or will this be just a continuation of the old one, so if i.e. I decide to terminate it can I do it anytime giving 2 months notice or I would have to wait again 4 + 2 months?

        Comment


          #5
          A new tenancy agreement starts the whole process off again for a new fixed term. You are referring to a break clause within the AST, which is optional but is often included.

          Stay with the statutory periodic tenancy; you don't need to do anything and there shouldn't be any charges to be met. The prospective rent increase does not require a new tenancy agreement.
          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.

          Comment


            #6
            Assuming this is in England..

            Periodic tenancy notice is (for tenant) at least one month, expiry on end-of-monthly-tenancy-period date. So if your original tenancy started 12th August 2011 and you roll on to SPT & eventually give notice 28th August 2012 that cannot expire before 11th/12th September 2012.

            btw if you want to leave at end of tenancy Aug 2012 you do not have to give any notice at all (but must leave before end of last day..) but giving notice & arranging check-out inventory & key-handover would be sensible & polite. If you go this route expect agent to squeal & insist it is not legal (it is legal...)

            Cheers!
            I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

            Comment


              #7
              Hey guys,

              Thanks for all your responses. Really helps.

              Does the below email sounds good?

              "Dear..."

              Hope you are doing well.

              After discussion with my wife, we definitely want to continue living in the apartment. We think however that the £50 increase is bit steep and we could agree on £25, which would put the rent to £895.
              Also, as we’ve lived here for almost 12 months we would like the tenancy go into a statutory periodic tenancy (SPT), rolling on monthly basis.

              I hope that the landlady will be happy with this.
              Kind regards
              .."

              Comment


                #8
                Sounds OK. Whether the agents will be happy with that, remains to be seen. mine werent.

                You can back your rent increase suggestion with the latest RPI/CPI figure of 3.5% which translates into a £30 increase.

                Whether you have lived there for 12 or 6months is irrelevant with regards to going into an SPT. an SPT starts after the fixed term ends, regardless of how long that is.
                All views posted reflect my personal opinion only and do not constitute professional advice which I am not qualified or knowledgeable enough to provide.

                Comment


                  #9
                  But the final call has the landlord anyway? They must tell him my proposal? Is that correct?

                  Comment


                    #10
                    You would expect so, yes. In the past they have translated "I do not wish to renew" to "Tenant gave notice to leave". Cat really trust them. Bear in mind though that agents cant evict you and you can insist on the LL signing the S21
                    All views posted reflect my personal opinion only and do not constitute professional advice which I am not qualified or knowledgeable enough to provide.

                    Comment


                      #11
                      Well, the agent said that the landlord is happy with us as a tenants so hopefully she will agree on that.

                      Comment


                        #12
                        Depending on the agent it may get lost.

                        You have your landlords address on your tenancy agreement to write to him directly or print off email and send it to him. Then you know you have done everything possible to tell him.

                        Some landlords don't want to know the details of the let - their choice but the landlord is ultimately responsible for the deposit.



                        Freedom at the point of zero............

                        Comment


                          #13
                          Originally posted by Interlaken View Post
                          Depending on the agent it may get lost.
                          Depending on the agent, the OP's request might get translated to "Not only is the tenant refusing to pay the rent increase, he's also refusing to sign a new contract. I suggest you evict him ASAP; we'll have absolutely no problem in immediately finding a new tenant who'll pay an even higher rent than that."

                          OP - yes, you really need to contact the LL direct... one problem is that many of those who use agents have no idea that a periodic tenancy is perfectly OK and above board; and since agents get paid handsomely for renewing agreements (or failing that, replacing the incumbent tenant), they have no reason to want to spill the beans...

                          Comment


                            #14
                            Cool, thanks for the advice guys. So, saying in the email about me contacting landlord directly, wont help as they will "rephrase" everything anyway?

                            Comment


                              #15
                              Originally posted by MSaxp View Post
                              Bear in mind though that agents cant evict you and you can insist on the LL signing the S21
                              What does "insist" mean?
                              To me, it means that the tenant can beg, plead or threaten, but it means nothing legally.

                              Originally posted by Ericthelobster View Post
                              and since agents get paid handsomely for renewing agreements (or failing that, replacing the incumbent tenant), they have no reason to want to spill the beans...
                              Generalisation alert.
                              Allow tenants to protect their own deposits. I want free money when they do it wrong

                              Comment

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