tenancy renewal with keys

Posted by Admin - 04/05/2016

 

Tenancy Renewals

Under the Housing Act 1988, after a fixed term tenancy agreement, the tenancy will continue on a weekly or monthly basis (depending on how the rent is paid), and the same terms and conditions as the preceding written agreement will apply. This sort of tenancy is called a periodic tenancy.

Although it is not strictly necessary to renew a tenancy agreement, there are some circumstances where it’s a good idea to do so.

Rent Increases.

The safest method to issue a rent increase to your tenant is to get them to agree to, and sign, a new tenancy agreement.  The rent increase cannot be challenged by the tenant once they have signed the new tenancy agreement.

Changes in Occupancy.

If there is any change in the parties to the tenancy agreement you should issue a new tenancy agreement. For example, if one of the tenants has left and a new tenant is taking their place, or if you, as landlord, have sold the property on to a new landlord and they are keeping the tenant on.

Changes In Terms.

If you want to change the terms of the tenancy agreement then issue a new agreement to your tenant. This is a good idea if you find that your tenancy agreement is quite old.  There may be changes in legislation that the old agreement does not cover or there may be something you want to alter.

Fixed Term Security.

If you want the security of a further fixed term. This can be beneficial for both you and the tenant. You know that his property is let and that you will receive rent from your tenant for a specific period and the tenant knows that they cannot be evicted during that time.

Sometimes, however, if either you or the tenant are not sure how much longer you want the agreement to run for (perhaps if you’re considering selling the property but you’re not sure exactly when), a periodic tenancy will be the best option. It’s more flexible as you don’t have to wait until the end of the fixed term to end it.

If you let your property through a letting agent, they will generally do a ‘renewal’ as part of their process. If you want the tenancy to run on as a periodic tenancy, it’s important that you tell them this. Otherwise, you may find that your agent has renewed for a new fixed term and is charging you a renewal fee.