fleming Posted July 14, 2006 Report Share Posted July 14, 2006 What is the general opinion on whether to keep renewing tenancy agreements or just allowing them to become periodic tenancies? I can see pros and cons to both. We plan to hang on to our house for another few years. Say we find a tenant who stays for that length of time. Do you suggest renewing 6 monthly agreements till nearer the time of sale and then going periodic? Or what? Link to comment Share on other sites More sharing options...
scoot2001 Posted July 14, 2006 Report Share Posted July 14, 2006 I asked this question in an earlier thread but due to my curiosity I actually rung my solicitor who said the only real reasons for not letting it go to periodic would be if you wanted to perhaps put the rent up or change some part of the tenancy (and therefore sign a new one). Other than that no real advantage (according to him) and obviously you have the advantage of being able to then serve notice without waiting the duration of the tenancy to expire. I do know the only time (touchwood) I have had REAL problem tenants was when they nagged and nagged me into another 6 months shorthold and then promptly started being very unreliable with rent when signed. They eventually had to be evicted. There does however appear to be mixed views on this. Scott. Link to comment Share on other sites More sharing options...
Trenners Posted July 15, 2006 Report Share Posted July 15, 2006 Hi Fleming, The main advantage (to both landlord and tenant) of fixed term tenancies and tenancy extensions to the fixed term is "Security of Tenure". In other words - if I extend the tenancy by another 6 months (or more) then neither party can serve notice on each other to terminate until the end of the term. Tenancy extension - rather than periodic - is really advantageous to the landlord because 1) the tenant has already been paying you rent (for the last 6 months) so why wouldn't they continue? 2) the tenant can't give you 1 months notice because they are locked into another 6 month contract and c) you don't care about the lock-in because you don't want possession back anyway ! I always ask for the extension towards the end of the 5th month - this tells me whether they are planning on staying or going. If they won't commit to another 6 month term, in my experience, they rarely stay another 6 months on a periodic tenancy. ie: the reason why they won't extend is because they are already planning their exit. Hope that helps Mark Link to comment Share on other sites More sharing options...
fleming Posted July 17, 2006 Author Report Share Posted July 17, 2006 Thanks for that. In other words, if a tenant has proven to be a good one, we are as well to keep doing 6 month tenancy agreements until such time when either party may wish to move on or sell in the near future. We are referencing a prospective tenant now, so here's hoping we will soon have some rent coming in. Link to comment Share on other sites More sharing options...
Trenners Posted July 17, 2006 Report Share Posted July 17, 2006 Hi fleming, Exactly ! I usually start off with a 6 month fixed term and then encourage the tenant to sign a 12 month fixed term extension. I explain, by doing this, the tenant can effectively fix the rent for a further 12 month term. This means that I get a solid 18 month period (minimum) without any voids ! Mark Link to comment Share on other sites More sharing options...
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