Hi, thought I’d see what the more experienced landlords preference is.
My tenant is approaching her final quarter of the tenancy, I’m a non professional landlord, renting out my flat while I work up north, in all honesty don’t see me ever moving back but it’s a nice security.
Renew to a new 12mths or allowing rolling? And do you guys ever ask the tenant which they would prefer? She’s been perfect tenant and if it means she was comfortable maybe she’d stay put longer?
I’d just ask them what they’d prefer to be honest, both have merits, some like the flexibility of the rolling contract, some prefer the perceived security of the fixed contract. You both still have exit clauses if needed either way I think?
opt for fixed term!
You wont want to receive a call on 10th December saying here is my one month notice -and thanks for everything
All those trips in deepest winter to interview the (rare) interested party!
I believe it’s always best to understand the future intentions of the tenant regardless of what term contract they are. If you know they are in for the long haul then a good relationship is key.
To be honest I always opt for a periodic tenancy as if the tenant runs into financial difficulties or wants to leave they have a way out. I agree interviewing tenants in December isn’t great but I would rather have the opportunity of a paying tenant than a non paying one who can’t leave.
This is your chance to review the situation and to communicate and build rapport, and as others have rightly said avoid being stuck with trying to find a tenant over Xmas. So just say that the tenancy is coming to an end and ask her to think about her plans and whether she will want to renew for another year. It’s also your chance to review the price you are charging and make that part of the offer when you write back. You may feel like she should be paying more and if that is the case then offer an increased rent but also mention that signing a years contract will fix it at the new price. If the uplift is in the contract then you should refer to that. You should also justify any increase by mentioning the new legislation that bans you from charging for an inventory and possibly deposit protection as well so there are 2 bona fuse reasons to put it up by at least £10 a month right there. Obviously you have to balance that with the risk of losing her but if she walks fir £10 extra then she deserves to leave as she has no respect for your position and will have to suffer the upheaval of finding somewhere else. I would also ask whether the new Landlord Fees Act is retrospective, I,e. Can it ban you from making charges for an existing old contract ? If you go into periodic can you still legally charge the fees as the contract was made before the legislation
Rolling is better
If you ask her what her intentions are you put a question in her mind-do I want to stay here which may not have been in her mind before and also make her feel she is being bulldozed
It also gives you the freedom to take back the property quickly if circumstances change-you never know what may happen in the future
Tenants also like rolling
It gives them a feeling of freedom and, at the same time security
If they are not comfortable in your property they will give you notice in December anyway p
It is their right
If you let it roll they know you are happy with them and will probably let them stay as long as they like
I used ask my tenants at renewal time but now usually ask them to commit to at least the minimum term that is mandated by my insurance policy (3 months IIRC). Prior to that I was happy with with either rolling or fixed term as I’ve never had trouble finding good tenants quickly due to owning in a high demand area.
Hello, if you choose to give another tenancy, make sure you cover yourself when it comes to the deposit. Technically you need to return this and start again protecting rhw deposit again, i didnt do this and I stupidly gave my tenants a new 3 year tenancy, it all ended very badly, they tried to sue me for 4 times the deposit amount on the advice of Shelter, it went to court and although their case was thrown out, it was very stressful. I am not saying that your tenants woyld do this, mine were professionsl scumbags.
I always leave it on a rolling basis for the reasons others have given. Particularly now with the new fees act, since if you issue a new fixed term contract you will immediatey have to comply with the act instead of having a 12 month transition period to comply.
If you leave it on a rolling periodic basis, be sure to amend your deposit protection record accordingly. I don’t know about other schemes, but if you don’t notify MyDeposits, they cancel the protection.
Hi there. I rent out a single property and always go onto a rolling tenancy once the initial AST has run. I have never had any problems with this and we always agree to one month’s notice either way. Hope this helps.
Thanks everyone, some really brilliant input, and really interesting reading the different perspectives, some like insurance t&cs that had never occurred to me.
I’ll let you know which way it goes later in the year
Still interested if anyone has any other input, cheers