Renewal service in a periodic tenancy

Landlord Discussion
1

Hi All,
Can anyone confirm the Renewals Service (removing a tenant) only removes the name and does not create a totally new 6mths AST agreement???

I have two tenants - one wants to leave and other stay.
Its now a Periodic tenancy after the 6 months AST rolled on.
Open Rent Renewal service is simple process to remove the one tenant.
However, the Renewal service appears to draft a completely New Fixed Term 6mths Contract ? Is this correct?
or am I and the tenant misreading it?
The remaining tenant does not want to sign up for another fixed 6mths AST - he wants to remain periodic to give him flexibility to only give one months notice if he finds it difficult to afford the rent on his own.
Please can anyone help? Many thanks R

2

It will require a new AST, as the tenants are changing.

You could put a new fixed length of less than 6 months, as that would give him flexibility to terminate sooner.

3

Ah thank you Karl11 that was quick!
I will check out the option of reducing the fixed term and see if tenant accepts.
Kind regards

4

Hello, I am a landlord and have a tenant that is on a periodic tenancy after the AST ended. I want to revert to a new AST but do I need to give notice that the periodic tenancy will end in 2 months time and at the same time issue the new AST to start in 2 months? Sorry if this is in the wrong place but as I am a new to this and couldn’t find out how else to post. Thank you in advance for any help.

5

Why do you want a new tenancy. The periodic is better for you and the tenant. You can increase the rent if you need to in a periodic tenancy. Most experienced landlords just do a short initial/fixed term and then let it go periodic asap.

6

I agree with David122, but in answer to your question, if you both want to sign a new AST, then just date it on a future rent payment date & both sign it. No need to serve notice for the existing periodic.

7

Hello David,
Thank David and Karl for your input. The rational behind reverting to a 6 month AST is that the tenant is paying well below the market rent - it hasn’t increased at all in three years. From what I understand with a periodic tenancy I can increase the rent once a year. He is a good tenant and I don’t want to suddenly hike up the rent and would rather do it smaller 6 monthly increases over a year or two. So it seemed logical to make an AST for 6 months with a small increase in rent and then a new one in 6 months time with another small increase etc.
Does this seem sensible?

Also with new legislation coming in next spring I might want to get out of the landlord business entirely in the not too distant future, I only became a landlord when my mother died and I inherited the property.

Helen

8

Rents are meant to be increased yearly unless you have a clause in contract that permits it sooner

Legal advice is to make sure you increase yearly as the government are putting a cap on it

Some landlords I have spoken to are putting their entry price higher as we don’t know how limited we shall be

9

Not sure this is correct. My understanding is that landlords will be permitted to increase once yearly to market rate, which is pretty much the status quo at the moment. The Renters Rights bill does not presently include any more rigorous rent control rules.

10

Ref landlord association website
I called to take advice from them

Currently statute is 5% once a year unless stipulated in contract in rent review clause (which should stipulate how much and when )
Obviously this will change next year

11

I’m very confident this is wrong, there is no 5% rule in any UK law. A landlord can increase rent by any amount, or as per any rent review clause in the contract.

I’m interested in what legislation you are referring to.

1 Like
12

That it what I was told by my solicitor and the landlord association
This applies to the absence of a review clause which is what I said in my previous post

13

I would agree with Karl. There is no law limiting rent increases. Ive no idea where your solicitor got that 5% rule from.

1 Like
14

Hi all,
The first tenant gave proper notice due to leave on 2nd Oct.
Remaining tenant thought he would remain BUT is not prepared to sign even an amended 1 month contract the landlord was prepared to draft…(we know the pitfalls of short contract)

My question is…

The remaining (lead) tenant has now asked can he leave on 2nd Oct - or does he have to give ‘proper’ one months notice ?

Effectively, Leaving the Landlord with less than 2 weeks proper notice!!!

My understanding is both tenants will have to vacate on 2nd as no-one is signing up to any new contracts… this is leaving the Landlord out of pocket and not even 2 weeks notice…

Or can the Landlord revoke the original notice and ‘require’ both tenants to give proper 1 months notice ???
honestly, I have jumped through hoops to accomodate these guys as I was happy for one to remain… but don’t want to be pushed into a situation were landlord has only 2 weeks to sort new tenants etc …
Can anyone help?

15

Are you in England? No limit applies.
Tenant can challenge through tribunal if they consider to be over market rate.

16

If notice was served correctly and accepted then that ends the tenancy for both tenants if on joint tenancy. both should leave on 2nd October.

17

Thanks A_A, My problem is that I haven’t increase the rent for more than 3 years and now have to do so because of personal circumstances. If I increase the rent in one hop it will be hard for the tenant to accept it and could leave, which neither of us want. He is happy for smaller incremental rises, thus the idea of reverting to a 6 month fixed term AST, with a rent review every 6 months. I am being as fair as I can to the tenant but I do need to increase the rent.

18

The problem is you need to get two increases before the government plans get through which is expects in less than 12 months
There will be a cap on increases and a yearly rise only
So you may want to increase it twice rather than three times or you may never catch up

Alternatively you could ask Keir Starmer or his cronies to pay his rent through his freebies or golden pensions ……

19

Assuming the tenancy is periodic znd the notice is valid, then David79 is correct. It isnt a question of CAN the second tenant leave on 2 Oct, he HAS to leave on 2 Oct because his tenancy will have ended

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