Tenant wants to extend tenancy: is it a good idea?

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  • Tenant wants to extend tenancy: is it a good idea?

    I am a 1st time landlord. AST agreement coming to end on 14th march 2008. My tenant want to extend the stay for further 6 months in 1st instance. Having gone through this site, i believe the option are- a) make a new fixed term AST for 6 months or b) do nothing- so that it becomes periodic tenancy.

    My queries-
    1- what are cons of letting it become periodic tenancy. is it advisable to make another fixed term AST

    2- The tenant was found by estate agent. I paid them fees worth 4 weeks of rent for finding the tenant. Now since the tenant is continuing to stay do i need to pay to the agent fees worth 2 weeks of rent. if yes, why and is there a way around it

    thanks

  • #2
    In your situation I would just let the current tenancy run onto a SP.
    The only advantage from a LL's point of view in getting the tenant to sign a new six months AST is that you would then be guaranteed six months rent.

    Comment


    • #3
      And another advantage would be that you could ask them to leave with two months' notice.

      The disadvantages are that if you issue a new tenancy, you are stuck with the tenant for at least 6 months as you can't start legal eviction proceedings unless they breach the agreement (Section 8).

      Disadvantage of letting it go periodic are that your tenant can give you one month's notice.

      It's up to you to decide which is a better set-up for you.

      Comment


      • #4
        If i let the tenancy to continue as periodic tenancy and then the tenant defaults ie does not pay electric , gas bills, how will i prove then to the respective companies that it was tenant staying at the property who defaulted as then i will have no proof of their stay in the property witout the AST.

        am i correct

        Comment


        • #5
          Originally posted by drmjafri View Post
          If i let the tenancy to continue as periodic tenancy and then the tenant defaults ie does not pay electric , gas bills, how will i prove then to the respective companies that it was tenant staying at the property who defaulted as then i will have no proof of their stay in the property witout the AST.

          am i correct
          No you are not correct.

          Two points.

          1st, The Gas electric bills are not your concern, they are between the tenant and the suppliers. Don't worry about it.

          2nd, You do have proof of a tenancy, the original AST which will then still be fully valid as a periodic tenancy.

          Comment


          • #6
            Thanks for the quick reply. So for tenancy to become periodic tenancy, i dont have to do anything- just let the tennat continue to stay at the end of Fixed term.

            Comment


            • #7
              Originally posted by drmjafri View Post
              Thanks for the quick reply. So for tenancy to become periodic tenancy, i dont have to do anything- just let the tennat continue to stay at the end of Fixed term.
              Yep. Nice and easy.

              Comment


              • #8
                Originally posted by Colincbayley View Post
                Yep. Nice and easy.
                Thanks

                having now decided to go for periodic tenancy. i have 2 more queries-

                a- How do i increase the rent when AST rolls into periodic on 13/03/08

                b- tenancy deposit scheme- The letting agent kept the deposit of approx 1000 pounds and registered with Tenancy DEposit scheme. The certificate of registration is as follows-

                This is to certify that the tennacy of the property at Tenancy address-xxxxxbetween the landlord- My name and the tenant- tenant name beginning on 2007-09-14 ending after 2008-03-13 has deposit of xxx protected by the dispute service limited.

                what should i do with regards to TDS. Should i ask the letting Agent to transfer the deposit to me Or dont do anything- just leave it with TDS and inform them only when tenant decides to leave. Do I need to renew it.

                Thanks

                Comment


                • #9
                  Originally posted by drmjafri View Post
                  Thanks

                  having now decided to go for periodic tenancy. i have 2 more queries-

                  a- How do i increase the rent when AST rolls into periodic on 13/03/08 ( If your AST includes a clause to increase the rent, then use that. If not you will have to issue a S.13 notice

                  b- tenancy deposit scheme- The letting agent kept the deposit of approx 1000 pounds and registered with Tenancy DEposit scheme. The certificate of registration is as follows-

                  This is to certify that the tennacy of the property at Tenancy address-xxxxxbetween the landlord- My name and the tenant- tenant name beginning on 2007-09-14 ending after 2008-03-13 has deposit of xxx protected by the dispute service limited.

                  what should i do with regards to TDS. Should i ask the letting Agent to transfer the deposit to me Or dont do anything- just leave it with TDS and inform them only when tenant decides to leave. Do I need to renew it.Do nothing, the deposit is safe until the tenant leaves

                  Thanks
                  You will still have to give the tenant notice that the rent will increase, so you won't be able to increase the rent from March, April will be the first chance.

                  Comment


                  • #10
                    a. Use procedure under section 13 and serve appropriate Notice on T. NOTE: this s.13 procedure does not apply if the Tenancy Agreement already contains a rent increase mechanism.
                    b. As you need to continue protecting the deposit anyway, why not leave it where it is (but, if you are now managing the property yourself and not using the services of your Agent, tell DPS so that it can amend its records)?
                    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 http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                    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).

                    Comment


                    • #11
                      Thanks

                      excellent

                      however,since DPS (i believe) is a insurance type scheme. i believe the letting agent has the depositis(so getting interest) as well as paying the yearly fees to register the deposit. So then If then I contact DPS to amend their records- does it mean I have to register and pay the yearly registration fees. i am happy for the agent keeping the deposit and earning interest.

                      i also looked at section 13- Thanks. i believe rent can increased from 3 to 6 %

                      Comment

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