Fixed Term Rental Agreement - Any Options?

SausageCat_2

Hello all

I've been living in a rented flat for about 10 months. I have been ill for many years and am unable to work, and the only way was to pay 12 months's rent in advance as I cannot get a satisfactory reference. As the property was very popular, I had to pay more than the asking price in order to win over several other interested parties (and hoped I would live for many years at the property).

The estate agents have recently been in touch regarding renewal, and although I requested a rolling contract the landlord would only agree to a minimum of 6 months' fixed term contract, and the rent is going up by £25/month (no doubt due to a neighbour paying £75 more than my current rent and recently moved in). The agents have also said that once I agree to another 6 months I won't get a refund if I leave early.

Having read other threads here, it seems I just have to agree to this, but this feels very unfair. It means I can only move out at the end of the 6 months, or after another 6 months, and the window to find a new property would be very small and choices limited, while my rent would probably go up again.

Is there anything I can do? I'm kind of resigned to another fixed term, but I would be grateful for any advice or suggestion. Thank you.

sputnik1957

Don't have to agree to anything. Just tell them you are happy as things are and pay monthly. The fixed term is then a periodic. If you can afford to lose the place or want to take the risk you can call their bluff. Tell them your not intreested in the rent hike or new fixed term and you'll be waiting for notice.

SausageCat_2

The agents enclosed notice to vacate just in case it becomes relevant, when they wrote to me. It is a really popular area, and I know they can easily get a new tenant with higher rent. Unfortunately also I'll be away in 2 months' time, so I can't move then.

HappyMJ

SausageCat wrote: »

The agents enclosed notice to vacate just in case it becomes relevant, when they wrote to me. It is a really popular area, and I know they can easily get a new tenant with higher rent. Unfortunately also I'll be away in 2 months' time, so I can't move then.

You don't have to agree to a fixed term.

You can pay the increased rent if you wish on a periodic tenancy without signing a new tenancy agreement. As long as you pay the asking rent I doubt the landlord will actually go through with evicting you to get a void and no extra rent.

You do want to stay there so it doesn't really matter if you do sign for a new 6 month term or not.

Rents go up by a small amount each year. At least your landlord is keeping up with market rates instead of waiting years before making one huge increase which if you haven't budgeted for becomes unaffordable.

Even if you don't agree to paying 6 months rent up front the landlord cannot make you leave on or before the date on the section 21 notice. You can stay until instructed by the court that you must leave.

SausageCat_2

Thanks for your replies sputnik1957 and HappyMJ.

As I wasn't and am not working, when I initially signed the 12 months contract I could not give reference, hence the advance rental payment. Is this not relevant? From agents and landlord's point of view, there is nothing to prove that I can keep up the payment.

Also, as the agent is one of the largest in the area and has the most properties on the market, I'm reluctant to annoy them if I can avoid it.

HappyMJ

SausageCat wrote: »

Thanks for your replies sputnik1957 and HappyMJ.

As I wasn't and am not working, when I initially signed the 12 months contract I could not give reference, hence the advance rental payment. Is this not relevant? From agents and landlord's point of view, there is nothing to prove that I can keep up the payment.

Also, as the agent is one of the largest in the area and has the most properties on the market, I'm reluctant to annoy them if I can avoid it.

It's not relevant any more. You're going to be paying the rent each month so obviously you can afford to pay the rent. They've got a deposit to cover some unpaid rent and as long as they follow their procedures correctly the month you miss paying the rent they'll issue a notice requiring possession, you then leave, they lose very little and you end up paying anyway to avoid getting a CCJ against you.

Annoy them? How? By ignoring the correspondence....who cares. It's just a letting agent who leeches off your wallet charging you for tenancy renewal fees when in reality it's just about £1 in printing costs and 50p in postage costs which the landlord should pay for.

SausageCat_2

Just to clarify then, are you saying even though landlord has said they won't accept a monthly contract, I can just go ahead and pay monthly anyway?

HappyMJ

SausageCat wrote: »

Just to clarify then, are you saying even though landlord has said they won't accept a monthly contract, I can just go ahead and pay monthly anyway?

Yes you can. I can guarantee to you the landlord is in a worse situation having a tenant on a fixed term. You as the tenant have protection from eviction during the fixed term. What does the landlord have? Nothing...they have to wait until the fixed term expires before they can evict.

They will accept you on a rolling monthly contract. They won't take the risk to evict you to get nothing extra in rent.

Pixie5740

How did you come to the conclusion, from reading other similar threads on MSE, that you have to agree to a new fixed term contract? You don't. As spunik and HappyMJ have already said, you can let the tenancy become periodic.

See Ending/Renewing an AST for further information.

It is quite likely that the LA are just using an aggressive tactic to extract more fees out of both you and the LL just for changing a date and pressing Ctrl+P.

My advice would be to say nothing and just start paying the increased rent amount at the end of your current fixed term and serve notice if/when you want to leave. If the LL really does want you to sign a new fixed term (which you absolutely do not have to do) you could suggest that he pays any LA fees associated with the renewal and have a break clause put in the new TA.

pmlindyloo

[QUOTE=SausageCat;70864695]The agents enclosed notice to vacate just in case it becomes relevant, when they wrote to me. It is a really popular area, and I know they can easily get a new tenant with higher rent. Unfortunately also I'll be away in 2 months' time, so I can't move then.[/QUOTE]

Although everyone is giving the right advice about your being able to go onto a statutory periodic tenancy I am wondering if this is the best advice since you have been issued with a Section 21 already.

This section 21 (if legitimate - was your deposit protected? What are the dates on the notice) is only a notice for possession and you would not have to move out until the LL got a court order but do you want this stress?

The LL may not go ahead with possession proceedings but since you admit that the property is easy to rent (perhaps even with a much increased rent) do you want to take that risk?

Personally I would be asking for another year long tenancy agreement but if this is not possible then I would sign for another six months. This gives you six months when you can consider your options.

I do not agree with LAs getting money for the simple renewing of a tenancy but it is what it is.

You have to consider your own position.

Can you speak to the landlord rather than the letting agent and find out what their position is?

SausageCat_2

Thank you everyone for being so helpful, but what pmlindyloo says is exactly what I'm thinking. I'm actually quite confident that if I don't say anything they will 'activate' notice.

I was hoping there may be a loophole with a fixed tenancy agreement so that I can leave mid-term. Rental accommodations come up in very short or no notice and they want people moving in asap. Being locked in a minimum of 6 months every time, it's giving me disadvantage when looking to move (I moved to this flat because it saved me money).