Inherited a Rental Property - Tenancy Agreement still valid?

Brighty

Hi

My brother and i have recently inherited a rental property and tenants after our parents passed away earlier this year. It is/was not mananged by a letting agent as our parents were retired and managed it themselves.

My question is, is the original tenancy agreement between my parents and the tenants still valid, or do we need to make a new one as we are the new landlords?

Deposit is not currently in any kind of protection agency as the tenants have been in for 10years or so, well before they existed. If we need a new tenacy agreement, i assume we will have to find and protect their original deposit?

Cheers

Brighty

casperlarue

Brighty wrote: »

Hi

My brother and i have recently inherited a rental property and tenants after our parents passed away earlier this year. It is/was not mananged by a letting agent as our parents were retired and managed it themselves.

My question is, is the original tenancy agreement between my parents and the tenants still valid yes, or do we need to make a new one as we are the new landlords? Depends what sort of tenancy agreement your tenants have.

Deposit is not currently in any kind of protection agency as the tenants have been in for 10years or so, well before they existed. If we need a new tenacy agreement, i assume we will have to find and protect their original deposit? only for AST's that started after 6th April 2007

Cheers

Brighty

Assuming you are happy for the tenants to remain in place, then things carry on as usual. There is a prescribed method of informing a tenant of changes to Landlord..... first stop really is to establish what sort of tenancy agreement they have.....if they are assured tenants you could have them for a long time!

Sorry for your loss.

Brighty

Thanks for the info

We are happy for them to stay there for as long as they want, long term, trouble free tenants like them are hard to come by. Our intention is to leave it as a rental property for the forseeable future, we already own another rental property between us that we have with an agent, so are not new to it all, already do tax returns etc. We also intend to rent out our parents old home. I just wasn't sure if we needed to draw up a tenacy agreement as the landlords had changed and that would then mean the deposit would need to be protected. I'll look through the box of their paperwork tonight as i'm sure i saw something in there, think it was just one of those off the shelf DIY ones. Long term will look to put it with the same agent as our other property as they are over the road from each other.

Thanks

Brighty

G_M

The tenants still have a valid tenancy agreement - they just have new landlords. You. The terms of the tenancy are exactly as before, so you need to establish what those terms were/are.

It is likely the original fixed term of their tenancy expired and they now have a Statutory Periodic Tenancy (eg monthly). More info here on STP. Had their original Fixed term been renewed (say annually), then the deposit should have been registered.

But they may have a more secure form of tenancy, so you need to find out.

This post should be useful as you are new to letting.

You would have to register the deposit if you agree a new tenancy with the tenants (you cannot make them sign a new one, only ask!) and it would be good practice to register the deposit anyway, though this is voluntary.

pmlindyloo

It is unlikely that your tenants have an assured tenancy (which gives them more rights) if the agreement was created only 10 years ago,

It was most likely an assured shorthold tenancy.

If there have been no renewals of the contract since the original then they will be on a periodic tenancy.

however you need to look carefully at the details of the contract.

As has already been said you now take over the tenancy as landlords and assume all the responsibilites that entails.

As regards making a new agreement or just a renewal under the same terms then the deposit would have to be protected.

However, I have seen it suggested that in order for the tenants to have a valid address for the LL particulary regarding repair obligations then a new contract should be created.

I am thinking of the future where you may wish to sell and the tenants are unhappy and are forced to issue a Section 21 for example.

Would the incorrect address of the LL make it invalid or is it sufficient to notify the tenants just in writing of the change of landlord?

Not sure myself. Anyone else?

BitterAndTwisted

The OP should communicate in writing with the tenants, introducing themselves and informing them of the new bank-account details which future rent-payments should be paid into.

G_M

pmlindyloo wrote: »

However, I have seen it suggested that in order for the tenants to have a valid address for the LL particulary regarding repair obligations then a new contract should be created.

A good point. The Landlord & Tenant Act 1985 section 3 says:

Duty to inform tenant of assignment of landlord’s interest.
(1)If the interest of the landlord under a tenancy of premises which consist of or include a dwelling is assigned, the new landlord shall give notice in writing of the assignment, and of his name and address, to the tenant not later than the next day on which rent is payable under the tenancy or, if that is within two months of the assignment, the end of that period of two months.

(2)If trustees ....

(a)....
(b).....

(3)A person who is the new landlord under a tenancy falling within subsection (1) and who fails, without reasonable excuse to give the notice required by that subsection, commits a summary offence and is liable on conviction to a fine not exceeding level 4 on the standard scale.

but this does not require a new contract.

jjlandlord

2 different things here:

1. If the landlord changes, the new and old landlords must give correct notices to the tenant.

2. The tenant must be provided with an address for the service of notices.

None of the above require a new contract.

Regarding (2), as long as the tenant was provided with one address, I believe that that address remains the applicable one until the landlord provides a new one.
It is therefore in everyone's interests that the address remain accurate in order for the landlord to become aware of any notices.

G_M wrote: »

It is likely the original fixed term of their tenancy expired and they now have a Statutory Periodic Tenancy (eg monthly). More info here on STP. Had their original Fixed term been renewed (say annually), then the deposit should have been registered.

I think the key is not so much renewal vs. SPT, but rather whether the last tenancy has been created before 5th April 2007.

rpc

jjlandlord wrote: »

1. If the landlord changes, the new and old landlords must give correct notices to the tenant.

And how does a deceased LL (the old one) give notice?

The new LL must, the old LL should if possible.