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Periodic tenancies and new laws


ohdearme

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Assuming you are in England......cos Scots, Welsh & Irish now have their own devolved rule.....periodic tenancies are legal & unchanged.

Not sure how you think they save time.....there are advantages and disadvantages for landlords and tenants with tenancies that become periodic.

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Yes I recommend periodic tenancies.  I'm not a letting agent.  I see periodic as a quick way of releasing a tenant from a contract or getting rid of a tenant if they are a pain in the backside.  Outside my 6 month AST this is the way to go. One month notice their side and 2 months my side.

There is no legal change to rolling contracts - that would be a step toooo far. Just make sure you protect deposits, issue EPC and 'How to rent' government booklet at the outset of new tenancies.

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There is a change to the notice period of a periodic tenancy in that it doesn't need to end on a rent day any more and you can would use a s21(1)(b) to do this. This doesn't apply if it is contractually period and not statuary periodic.

Note: most periodic tenancies are statuary

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Mortitia,  I can see how a periodic tenancy may suit you but, for others it does rather depend on their market, target tenants and their priorities.

Having a fixed term tenancy provides both landlords & tenants some security. For landlords that security is the knowledge that their property is let and they have rental income for the duration of the fixed term. For some, that security of income is very important.

 

 

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On ‎16‎/‎01‎/‎2016 at 11:23 PM, Grampa said:

There is a change to the notice period of a periodic tenancy in that it doesn't need to end on a rent day any more and you can would use a s21(1)(b) to do this. This doesn't apply if it is contractually period and not statuary periodic.

Note: most periodic tenancies are statuary

 

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Thank you so much just one more query on the section 21 mentioned above., I understood that there was to be a new "one for both" (one form for fixed and periodic). Did this materialise or do we carry on using the two separate ones types, one to use before the end of the tenancy (fixed) and the periodic one?

 

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If you have an older tenancy agreement that is now periodic I recommend you use an old style S21 to end in time with the rental period.  Make sure your S21 has within it  'possession is required after .......... 2016'.

Reason:  Not all judges will be aware of the changes (sounds pathetic I know) so to make you life easy and come out with a result on the day go down this route. 

For tenancies started after October 1st 2015 go down the new style route - none will have been tried and tested yet.

Richlist - I think that you may be letting in a pretty exclusive market compared to the rest of us plebs and a 1 year contract or longer probably does suit you.   For newbies and BTLetters with just one or two properties I still say that 6 month AST is the way to go - that seems to be most of the enquirers we get on this site.

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Mortitia,

I don't think I am letting in an exclusive market. Many of my properties are small 1 or 2 bed properties in Essex  let at market rents for the area. My ' usp ' if there is one, is that I am very, very selective when choosing tenants. So it's not my properties or my area, or my rents that are exclusive.......I just handle the letting process a little different to other landlords.

I rarely go for initial 12 month tenancy agreements.....unless my lease for that property has adverse permission to let requirements that provide financial advantages for longer term AST's. I never go for terms longer than 12 months, 6 month terms are normal business and very occasionally they become periodic depending on circumstances.

I prefer a fixed term AST because that guarantees my income for the fixed term. Even if the tenant decides to leave part way thru the fixed term the rent is payable and we will often negotiate a mutually agreeable settlement which has far better financial benefits for me than if the tenancy was periodic.

There are circumstances where periodic is an advantage but I don't find there are many good business reasons. Most landlords will go with a 6 or 12 month AST initially and ater that period most landlords will know if they have a suitable tenant that they want to keep. 

Fixed term tenancy agreements maximise a landlords income. Periodic tendencies make it easy for tenants to leave with a months notice.

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Thanks everyone, but no one actually answered my last question on Sec 21, whether there is a new one form for both fixed and periodic, or are the old ones still in use?

I am sure that I read somewhere that there were new forms.

By the way Richlist, you are wrong. It's women, MUSIC then wine....in THAT order

Best to all.

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2 hours ago, ohdearme said:

Thanks everyone, but no one actually answered my last question on Sec 21, whether there is a new one form for both fixed and periodic, or are the old ones still in use?

I am sure that I read somewhere that there were new forms.

By the way Richlist, you are wrong. It's women, MUSIC then wine....in THAT order

Best to all.

It is a S21 6a for tenancies started after 1st oct 2016. Old style S21 for tenancies prior to that date.

 

You both are both wrong its wine, wine and more wine in that order.:wacko:

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Well this IS good!  Never have I been on such a fun filled forum. Thank you Grampa for telling me about the S21 6a  That's what I wanted to know, but I think that you may have meant 2015 not 2016?

Anyway, the other thing. You are all wrong . It's good tenants, women/men(decent ones) and people who help each other, such as the ones on this forum. 

Best to all

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