Notice Period for Fixed Term Tenancy

rps1980

Having read and re-read every possible forum with regards to this subject we felt compelled to share our experience in this matter as tenants which we successfully defended only just this week. For any tenant in this position – stay strong and try not to be bullied by the LA or the LL.

In summary, our experience demonstrated that many Lettings Agents:
- Only have the landlord’s and their own interest in heart. The (future) tenants are NOT their clients and they feel no duty of care over them.
- Do NOT know the law with regards to tenancy agreements or contract law.
- Can behave at best unprofessionally, and at worst fraudulently.

Facts of our case:
- We had an assured shorthold tenancy (AST) which ran until 24th February 2013.
- On 20/01, after 6 weeks of us chasing the LA’s as to our LL’s intentions, the LL correctly issued a section 21 notice to reclaim possession of the property on the 25/03. This Section 21 notice essentially assumed that we would overstay our AST, and that we would create a Statutory Periodic Tenancy.
- A term in our tenancy agreement said that we had to give two month’s notice if we wanted to leave “on or before the end of the AST”.
- We were able to move out before 24/02, and, assuming that we had to pay rent until 24/03, tried to negotiate with the LA so that we wouldn’t pay a full month’s rent for when the property was empty. They wouldn’t have any of it.
- But then we found out via more scrupulous lettings agents, forums such as this, the OFT and Shelter that we could leave on or before 24/02 despite the term in the contract, and were not liable for a month’s rent.
- We told the LA this, and their behaviour was aggressive, unprofessional, and arguably fraudulent. They claimed their contract had the backing of their solicitors, ARLA (who are an embarrassing outfit, don't be intimidated by them) and that they had successfully claimed rent in the past for identical situations.
- After 7 weeks of fighting with the LA’s they finally caved in and returned our deposit in full, without the need to go to a dispute with the Tenancy Deposit Scheme.

Key learnings:
- We HAD to vacate the property in full by 24.02, so as to avoid a Statutory Periodic Tenancy, otherwise we would have been liable for a month’s rent. We initiated the check-out report and inventory check – which the LA tried to postpone despite us having a direct contract with the Inventory Clerk! – and made sure the keys were returned in person. This way there was no way they could claim we were in ‘possession’ of the property which is the wording of the SPT.
- The term requiring two months notice is unfair and unenforceable, as per the OFT’s guidance on unfair rules in lettings agreements (2005)
- Our Tenancy Deposit Scheme (TDS) claim that in a dispute it would be erroneous of them to ignore specific guidance by the OFT, and so I was confident that if we took it to dispute we would be successful.
- Typically LA’s have 10 working days after the end of the AST to contact you to confirm if any deductions were to be made against your deposit.

We fought them, and in doing so went through a lot of stress and worry, but they eventually folded and gave back our deposit in full – without any reference to the issue at hand. No apology, no explanation, nothing.

Looking at all the internet forums out there it appears bad practice on the part of Lettings Agents is widespread, and like us, many tenants will feel weak, isolated, powerless and bullied to conform to the Lettings Agent’s behaviour. It’s worth reflecting that you don’t need any qualifications or licence to become a Lettings Agent, and so it’s hardly any surprise it’s an industry that attracts and rewards the ‘less than scrupulous’...

Good luck to anyone in a similar position.

rps