Tenancy renewal question

TUS

We are approaching the end of our initial 6 month tenancy. Our assumption was that at the end of the 6 months we would move on to a periodic tenancy (ie, rolling monthly) as standard.

Yesterday we received a letter from the letting agents stating as follows:

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Dear Mr xxxx

According to our records, your tenancy agreement expires on 11/01/2011.

Please can you sign and return the slip below as to what your intentions are.

Please note: if you sign for a further 6 months, you will be bound by this agreement under which there is no provision for termination. However, if you are unable to sign for a further 6 months, please advise us if you intend to vacate at the end of your tenancy. If you wish to remain on a periodic tenancy (month by month), all the terms and conditions of the original lease apply and no new documentation has to be signed. Should you wish to vacate, you must still give us one months notice in writing of your intention. As always, the landlord must give you two months notice.

If we do not receive a reply from you within 10 working days of this letter we will assume that you wish to remain on a Periodic Tenancy consecutive to the expiry date of the current fixed term. Accordingly, the terms and conditions of the original lease apply.

Yours sincerely,

xxxxx

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Now ... my question is - is there any benefit to us signing for a further 6 months over moving to a periodic tenancy? We have NO intentions whatsoever of vacating and was planning on this being a long term let (assuming the LL doesnt give us notice at any point). Not sure whether 6 months or periodic would give a better impression to the LL in stating that we are more than happy to stay! Or if there are any benefits one way or the other.

I find it odd that if you take another 6 months it says you cannot terminate. I thought you ALWAYS could with appropriate notice?

Thanks in advance.

theartfullodger

Only advantage of signing a new deal is that it gives you (&LL) security that, if you keep paying the rent, you can stay for 6 months, LL is entitled to his money for 6 months

TUS

theartfullodger wrote: »

Only advantage of signing a new deal is that it gives you (&LL) security that, if you keep paying the rent, you can stay for 6 months, LL is entitled to his money for 6 months

Does that also mean he cannot give us notice during that time?

theartfullodger

TUS wrote: »

Does that also mean he cannot give us notice during that time?

He can give notice (usually an S21 notice) but it does not expire until the end of the fixed term of the new tenancy. Equally you can give notice at any time but remain liable to pay the rent to the end of fixed term.

chris_m

Only thing to watch out for on a tenancy extension is if the letting agent wants to charge a fee for arranging the extension - from what I've seen here, some try to charge almost extortionate fees (almost the same as for actively marketing a property and finding new tenants) for simply getting a signature on a bit of paper. That's not to say that all do, but it's something to be aware of.

tbs624

Some LAs will even try to charge an admin fee for sending you a letter about a stat periodic

OP - just write thanking the LA for the letter and confirm that you are happy to continue on a Statutory Periodic Agreement, if that is what suits you. It arises by law after Fixed Term expiry where a T stays in situ and the LL does not seek a Possession Order - it's not a case of it being as your LA puts it that its something you do if you "are unable" to commit for a further 6 months.Many LLs/Ts continue under a SPA for several years.

Others prefer to be tied in to a new FT ( particularly if the property is also up for sale) but as Chris says above, watch out for any "renewals fee"

DVardysShadow

TUS wrote: »

Yesterday we received a letter from the letting agents stating as follows:

---

Dear Mr xxxx

According to our records, your tenancy agreement expires on 11/01/2011.

Please can you sign and return the slip below as to what your intentions are.

Please note: if you sign for a further 6 months, you will be bound by this agreement under which there is no provision for termination. However, if you are unable to sign for a further 6 months, please advise us if you intend to vacate at the end of your tenancy. If you wish to remain on a periodic tenancy (month by month), all the terms and conditions of the original lease apply and no new documentation has to be signed. Should you wish to vacate, you must still give us one months notice in writing of your intention. As always, the landlord must give you two months notice.

If we do not receive a reply from you within 10 working days of this letter we will assume that you wish to remain on a Periodic Tenancy consecutive to the expiry date of the current fixed term. Accordingly, the terms and conditions of the original lease apply.

Yours sincerely,

xxxxx

---

Now ... my question is - is there any benefit to us signing for a further 6 months over moving to a periodic tenancy? We have NO intentions whatsoever of vacating and was planning on this being a long term let (assuming the LL doesnt give us notice at any point). Not sure whether 6 months or periodic would give a better impression to the LL in stating that we are more than happy to stay! Or if there are any benefits one way or the other.

I find it odd that if you take another 6 months it says you cannot terminate. I thought you ALWAYS could with appropriate notice?

Thanks in advance.

The letter actually looks very fair. If you want the option to terminate, then go periodic. Otherwise, if you sign up again, you are bound in again for as long as you sign up for.

G_M

Three cheers! Finally a letting agent acting professionally! Laying out all the options, and implications, for the tenant and providing choice.

The advantage of a new 6 month contract is security. You cannot be asked to leave before that. With a periodic tenancy you can be asked to leave at any time subject to 2 months notice.

The advantage of periodic is YOU get flexibility and can leave anytime (subject to one months notice).

An alternative option if you really want to stay, and to have security, would be to request a longer fixed term: 12 months or whatever.

So it's up to you. There are pros & cons to each.

chris_m

G_M wrote: »

Three cheers! Finally a letting agent acting professionally! Laying out all the options, and implications, for the tenant and providing choice.

Indeed - but I still say be careful, it only asks for the tenant's intentions and doesn't say whether or not a fee will be charged (nor how much) upon renewal if that is what the tenant indicates they wish to do.