Me and tenant have been trying to negotiate a new 12 months fixed term contract but currently stuck as I have made all sorts of accommodations and can’t do anymore. Only two weeks remaining to expiry. What is expected now? i.e. The tenants simply leave and vacate in two weeks? That would leave me with no time to prepare and find new tenants without a long period of empty property. If tenants do not leave, then what options are open to me - does it automatically roll over into periodic tenancy? But what if that is not something either party wanted in the first place and both wanted a fixed term?
Whh do you want to renew? If you just leave it, it will become periodic on the same terms, which is better for both of you and no work to do.
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Because there was a rent increase clause in the original 12 m contract. Me and tenant have agreed on the rent increase on emails. If it automatically goes into periodic then what happens to the rent increase - does it take a) the higher rent increase contained in original contract b) take the agreed negotiated rent which is lower than agreed rent clause but higher than previous rent or c) the same old rent continues?
you have both agreed a rent increase of a set amount ? Then that is it… Going periodic is ok
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It would depend how the rent review clause was worded, but you may well be contractually bound by the amount specified. If this amount is not going to work for you and the tenant is agreeable to a new contract with a higher rent, then I agree that might be your best option. I would suggest only a 6 month initial term then periodic though.
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The tenant is insisting on a 3 m break period instead of 6m so I have agreed but conditional on paying a compensation towards the costs I will bear towards renewal fees. But it seems there is no legal way to include this compensation due to tenancy fees act. Thats where it is stuck. I can’t accept a 3m break clause without compensation or further increase in rent amount.
I wouldnt accept a 3 month break clause and your insistence on compensation may be unenforceable. If the tenant thinks theyre not going to be there very long, Id suggest leaving it periodic and just agreeing the higher rent informally. Once they start paying the new rent it becomes legally binding. If they dont pay, you can give them notice, (something that youre prevented from doing if you grant a new tenancy)
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Thanks David. They are very demanding and rude tenants who like to arm twist the landlord at every opportunity. Is it easier to serve section 21 and evict during a fixed term contract (after the initial break period) or during a periodic contract? Or this has no bearing? Just trying to weigh my options on the basis that I might not want to continue with them for too long. Obviously, want to avoid legal challenges and unnecessary nuisance from them too.
Many break clauses are badly constructed and can have adverse effects. If you manage to get one that does exactly what you want then the only difference would be that with a periodic tenancy you can serve notice at any time wheras with a fixed term tenancy you have to wait for the break clause.
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