Can I renew a paper based tenancy on OpenRent?
Why do you want to renew?
You can see more information about renewing a tenancy created off platform with OpenRent here: https://help.openrent.co.uk/hc/en-gb/articles/115001596412-How-can-I-move-a-tenancy-onto-OpenRent-
Because I prefer to renew rather and a periodic tenancy
Yes, but this involves retrieving deposit already protected, returning deposit to tenant, and then tenant paying it to you. Too much hassle.
Why, when its generally worse for both you and the tenant?
sorry mate, you seem to know so much.
What exactly is generally worse?
What’s generally worse? Well first there is a lot more admin, which if you use an agent costs you a lot of money, but even if you don’t gives you lots of scope to make a mistake which could cost you dearly at a later date. Secondly, it prevents you serving notice during the new fixed term if the tenancy suddenly goes bad or you have a change of circumstances. Most experienced landlords let their tenancies go periodic after an initial 6 month term to give them flexibility to deal with anything that might arise.
I see - and what method do you use to increase the rent annually?
S13 notices, which can take effect during periodic tenancies, but actually Ive never needed one as my tenants have always agreed the increases Ive proposed informally.
I don’t like S13 notices - pages 3/4 give the tenants guidance how to seek advice and challenge you, and they will challenge you, and it will lead to contention, to and fro, and time waste.
I don’t like an informal agreement either, as it may be misinterpreted (What is the new rent? When does it apply from? How long is it for? etc etc…).
A renewal contract defines all these elements and provides structure, precision.
When I say informal, I simply mean by email stating the new rent and the start date for payment. You don’t leave those things vague. As soon as the tenant pays the first instalment, the new rent becomes legally binding. However, if you are worried that your tenants wouldn’t pay an informally arranged rent, you just use a s13 notice. I know the form tells them how to challenge it, but hardly anyone ever does for 2 reasons. The first is because the tribunal will only reduce the rent if its been set above the local market rent. The second is because if its been set under the local market rent they can re-set it above what the landlord has asked for to bring it up to the market rent and the tenant then has to pay this.
The other consideration is that a tenant is not obliged to agree a new tenancy contract and if it has higher rent they can just decline. This will then force you to allow them a periodic tenancy and use s13 or serve a s21 notice.
Look, at the end of the day its up to you. I’m just telling you what I know.
I also start with an email stating the new rent, start date, duration etc.
If they agree I issue a new contract for them to sign to formalize agreement.
If they don’t, I issue a Section 21 for them to vacate property at end of current contract.