Do I need a new rolling contract agreement?

Landlord Discussion Legal
1

Hello,
Our tenants are coming to the end of their one year lease. We would like to go rolling, there are no changes to the rent.
Can we just slide into a rolling contract without doing anything or do we need to create a specific rolling contract for the tenants and us to sign?
Thanks

2

It will depend on what your tenancy agreement says. Have a read of it. Typically, you do nothing and let it go periodic. Less hassle for everyone.

And join a landlord association (search online for one) and do their training cos it really sounds like you could do with knowing the basics before something crops up that really costs you.

3

Thanks! I think we are good landlords and if it is a good idea to get some training!

4

Let’s put it this way, if you don’t do any training, you’ve no right to call yourself a good landlord :wink:

5

Your contract will document if it is a statutory , contractual or periodic contract.
If it is statutory you do need to serve documents again as it is classed as a new contract .

6

Thanks so much! That’s very helpful :blush:

7

I can’t remember if you need to redo right to rent check as I run on contractual periodic so you will need to clarify the law if you have a statutory periodic

8

The right to rent check is not connected to the type of tenancy, so a fresh check wouldnt be triggered by this.

The things that may be required with a Statutory Periodic Tenancy are a new How to Rent booklet if its changed since the original tenancy and to check with the deposit scheme if any action is required, although its only a possibility with insured deposits.

9

I’ve checked the contract it says

If the Tenant remains in the Property beyond the end of the initial fixed term and no new fixed term tenancy
comes into being then the Tenant will have a Periodic Tenancy by virtue of Section 5 of the Housing Act 1988.

So I think we are ok just rolling it. The deposit is in DPS scheme, so that should be fine too.

Thanks so much everyone for your super helpful replies

10

That’s fine the periodic is Contractual

11

No, the periodic tenancy is Statutory, as per s5 of the Housing Act 1988.

1 Like
12

I’m confused if the word statutory does not precede periodic then is it not contractual by default ?

Is that not the whole argument of Broadly vs Leeds council ?

13

Not if it states that it arises specifically by virtue of the Act. That is the definition of an SPT. Also the clause is conditional. It doesnt say that the tenancy WILL continue, just that if it does it will be periodic. The clause is legally redundant.

14

Thanks, it seems it will be a statutory periodic tenancy.
I think we will write up a new contractual periodic tenancy agreement
Does that mean our tenants (and us) are tied into a 6 month contract then, as it will be considered a new tenancy agreement, so as to speak?

15

yes they would… but why would you want to do that?

16

So you don’t get lumbered with council tax bills for the first six months if they don’t pay !

17

Fair enough.

@B116 if you trust them for another 6 months then you’ve got nothing to lose by creating a new TA that will become CPT when the fixed term expires. This is because even if you don’t a new tenancy will be created anyway it goes statutory periodic. As A_A says, it will provide you with an exemption from council tax while they are responsible for the property.

18

If its an SPT now, then I would say its not worth changing. Id leave it as it is.

1 Like
19

Yes, on reflection we will stay with it as a statutory periodic tenancy.
I’m not sure why the govt has made this so complicated with two types of rolling contracts…what’s the point?!

Thanks everyone so much for your help. Really grateful

20

If you keep the SPT, be aware that if there’s been a new How to Rent leaflet issued since the fixed term began, it’s worth issuing a new one when it goes periodic. That’ll mean you can serve an S21 if needed without it being invalid.