Forced For Another 12 Months

Radicalrooster

Hi all!

I'm currently renting an apartment with two friends. We've been here a year and received an email asking for us to renew our contract and pay a £120 renewal fee. There was also a small increase in our rent.

Looking over our original contract it states that after 12 months it turns into a one month rolling contract. This was our understanding when we signed up as it gives us flexibility.

We went into our estate agent who explained that they put that on the contract for 'legal reasons' and they would have to check with the land lord if he was happy to continue with the existing contract.

We are somewhat confused, could anyone help answer our below questions?

- We understand they want us to sign up for another year as it guarantees them rent from us for another year, but why would they put the one month rolling clause in the contract if they were going to request is to sign up for another 12 months?

- Where do we stand? If the landlord comes back saying no we must sign up for another 12 months, does that mean he's broken the contract?

- If we receive a no to the one month rolling and don't want to do another 12 months what can we do? We have to give two months notice if we don't want to renew but this has passed as we have been waiting for an answer. We have been chasing the estate agent who is chasing the landlord.

- Any other thoughts? To us it feels like we have kept up our end of the contract and we were offered a brand new contract for no real reason. Surely if both sides have agreed to 12 months then one month rolling this should be the case? Legally can we do anything if they come back saying they want us out because we didn't want to sign up for another 12 months and instead continue with the original contract?

To me to put it metaphorically it feels like we have taken out a loan, paid it off, and now the bank is asking us to take out another when we don't want to! (Apologies for the rubbish metaphor!).

Any help will be greatly appreciated.

melstar11

By law your tenancy will become a statutory periodic tenancy, i.e. a rolling contract, unless you sign up for another fixed term tenancy. It sounds as though the agents have automatically asked you to renew quite possibly without consulting the LL or have suggested to the LL that this would be the best way to proceed. They make money out of it - they are probably trying to charge both you and the landlord for their services in the 'renewal'. You can refuse to sign up for any fixed term and you will still have a tenancy. If the landlord is determined you must have a fixed term tenancy and you don't sign for it then his/her recourse is to serve notice. They then run the risk of a void period with no one in the property once you have moved out. That's the worse case scenario. It's unlikely to come to that.

kinger101

You will automatically go to the rolling contract at the end of the 12 month term, but it doesn't stop them serving notice if they want you out.

Agentus letticus is a parasitic organism, and tries to feed off tenants and landlords at every available opportunity. Often, the do this by tricking landlords into things which are not necessary.

In your situation, I'd contact the landlord, explaining that I've enjoyed living in the accomodation, would like to do so for the considerable future, but think a rolliing contract rather than fixed term would be in both your interests (no renewal fees for you, easier for him to get you out if he wants to sell for example).

kinger101

melstar11 wrote: »

By law your tenancy will become a statutory periodic tenancy, i.e. a rolling contract, unless you sign up for another fixed term tenancy.

In this case, it would be a contractual periodic tenancy.

[Deleted User]

This is standard practice for LA's as it gives them the renewal fee.

The LL may have requested it, they may not. I suggest rather than pushing it you let the situation lie. Its sounds to me as if the LA has tried it on, given their scripted responses to try and get you to sign and are now floundering (but I could be wrong|).

Or you could ask the LA for the LL's address (they have to give this within 21 days) and contact the LL direct yourself, if you don't already have the LL's address.

I see you feel like you have been conned to some degree but I am afraid this is all fairly common practice. Once your year contract is up, you have flexibility if you don't sign up to a new one, but so does the LL. Just because the contract said you could go to a periodic tenancy, it doesn't mean that this WILL happen.

agrinnall

It does sound to me like the LA trying it on in order to get extra fee income. But even if they do put it to the LL and he decides he wants to renew the fixed term you don't have to agree, and he can either accept your decision or go through the correct process to evict you - I'd guess if that did happen you might well have another 4-6 months there if you want.

dgtazzman

I'd keep quiet and wait to see if notice is given, as this does seem to be coming from the LA, rather than the LL.

If no notice is issued, rejoice, you're on a rolling tenancy with no rent increase.

If one is issued, you can always still agree to the new 12 month contract, it would be in the LA/LL's best interest to keep you in and avoid a void period + fees for finding a new tenant.

pmlindyloo

dgtazzman wrote: »

I'd keep quiet and wait to see if notice is given, as this does seem to be coming from the LA, rather than the LL.

If no notice is issued, rejoice, you're on a rolling tenancy with no rent increase.

If one is issued, you can always still agree to the new 12 month contract, it would be in the LA/LL's best interest to keep you in and avoid a void period + fees for finding a new tenant.

A landlord can increase the rent during a periodic tenancy.

In this case, the OP and friends may want to consider agreeing to the small rent increase. It may avoid the LL issuing a Section 21.

http://england.shelter.org.uk/get_advice/private_renting/costs_of_renting/private_tenancies

paddyrg

If it's any help, I've been on a rolling monthly for about 8 years now, so it's a perfectly viable long term solution

Pixie5740

I guess the questions is, "are you feeling lucky punk?" Do you pay the £120 and sign a new 12 month fixed term contract or do you let the tenancy become periodic? You could always accept the rent increase on a periodic tenancy. Would a landlord go to the hassle of evicting perfectly good tenants?

You can certainly try going to the organ grinder but there have been threads on here where tenants have tried that, the landlord has agreed to a periodic tenancy, and then somehow the letting agent are involved again and it's a new fixed term or nothing and the landlord will no longer deal directly with the tenants. Some landlords use letting agents because they a) have no wish to deal with the tenants full stop, b) don't have a bloody clue what they're doing.

dgtazzman

Rent can of course be increased on a rolling tenancy, but this also has a procedure and it is up to a tenant to accept it, or not (risking a s21 notice).