Does accepting a rent increase imply accepting a new tenancy agreement?

Gopes

Dear All,

I am in the process of house-hunting at the moment, with my other half. We are in no great hurry, partly because she is due to give birth in a couple of months, and partly because we are happy where we are - so ideally we would like to find and move into our new home mid-late summer.

My current (12 month) tenancy agreement expires in May. The agency that manages the property on behalf of the landlord have always set out that they insist on a new tenancy agreement being entered into.

They have also indicated that the landlord would be willing to renew the tenancy, at a slightly increased rent (an extra £30 per month - 2.5%), which given that we have had the same rent for 4 years is acceptable from our perspective

If I increase the standing order from May, but do not sign the new tenancy agreement, would the agency regard the fact that I have increased the rent payments, as an implicit acceptance of the new tenancy - hence tieing me in to a new 12 months agreement?

I had been hoping to simply not sign the agreement, thus moving on to a simple one month notice period - relying on the fact that the landlord would be unlikely to seek to evict me / take a dim view, if the rent is paid on time (as it always has) - and I give reasonable notice of when I will be moving out.

Does anyone have any views?
Gopes

Cissi

If you don't sign the new agreement then you automatically move over to a periodic tenancy, just as you planned. Even if the LL decides to give you notice, they'll have to give you two months, not one, so the earliest that you could be asked to leave would be in July. (Even then they'd need a court order to actually get you out, although that has always seemed like a rather unpleasant situation to me and one that I wouldn't push unless absolutely desperate).

theartfullodger

Nope: Same tenancy, but different rent & now periodic...

Gopes

Excellent, it sounds like I can increase the rental payment (which I am happy to do), but just go on to a standard periodic tenancy.

Should we just increase the rent payments, but not bother signing the agreement - or should we formally write to the landlord indicating our wish to proceed to a standard periodic tenancy?

Cheers
Gopes

silvercar

Will the landlord let you stay without signing a new agreement?

To increase the rent requires you to be given notice, I think its a section 13, or to sign a new agreement. I'm not sure how increasing the rent could be viewed by a court being you haven't been served a rent increase notice.

Gopes

Last year it was August before we got around to returning the signed agreement (effective from 15 May).

I am not sure what you mean by being given notice? I have been given notice - the agent has written to me asking if I wanted to renew for a further year - at the (slightly) increased rent. I want to go back to the agent saying yes - but "stall" on signing the contract.

The other approach would be to write to the landlord, indicating that I wanted to go on to a standard periodic tenancy, at the higher rental rate, so as not to commit to a full 12 month term. Ultimately, there is a risk that he will decide to serve notice and get someone permanent in - but hopefully, he will acknowledge the fact that we have been in situ for 4 years, and always paid rent on time - so better having a paying tenant in place (albeit with no long term commitment), than take the risk of the place being empty for 1-2 months, whilst a new tenant is sought.

I suspect the agent is gunning for a new 12 month tenancy, just so they can charge a fee to the landlord - so maybe by communicating directly with the LL will solve the issue - just need to find his address (I think it maybe on the tenancy agreement).

Cheers
Gopes

G_M

If the tenant/landlord agree a new rent, the formal rent increase Notice is not required. It would only be necessary for the LL to follow statutory procedures if you did not consent.

If no new fixed term agreement is signed, the contract becomes periodic.

Yes, if the LL is unhappy about a periodic tenancy he could serve 2 months (plus) notice, but at the end of the day he'd be mad. Tenant leaves. No rent coming in. Cost/agravation of finding new tenant which may/may not be easy at the higher rent. Most LLs would prefer to keep a relaible, paying tenant than kick them out just because of the contract type.

Now the agent, of course, has more incentive to get a fixed rerm signed or the tenant replaced. Either way he makes commisssion, whereas the periodic route earns the agent nothing.

So make sure the agent does not mis-advise the LL. Far better for the tenant to discuss with the LL.

property.advert

My guess is that this is all contrived from the agent. They want their commission for "finding" a tenant for this new tenancy and to appear in a good light where the landlord is concerned, they are seeking to increase the rent slightly. They then present this to the landlord as the fruits of their extensive labour, well worth their fee !

!!!!!!, just go to periodic tenancy and save the landlord a large wedge of money.

tyler80

I would just ignore the correspondence and carry on paying the existing rent.

josievg

Maybe a dumb question but have you actually asked the agents?

I used to get standard letters stating we had to sign for another 12 months which we did for two renewals.

Last year we were looking to buy a house and didn't want to be so tied to dates. I rang them and explained and it was no problem. I certainly had the impression before I spoke to them that it was the standard 12 months tenancy agreement or nothing.

They sent me a one page 'Memorandum of Agreement' to sign renewing the existing tenancy for 12 months - all terms the same except in this new tenancy I could give 1 month's notice at any time.

Worth an ask?

Ulfar

Do not tell the agents if your are planning to move for whatever reason.

The two most likely outcomes of this are you getting notice to leave or the landlord insisting on a new contract.