Are we allowed a rolling monthly contract?

cybervic

Just passed referencing and now looking to sign the rental contract on 22nd.

We would have need to use guarantors but decided to pay 6 month rent in advance because we need to move asap and I want to avoid any communication delays.

Agent has just send us our tenancy agreement which stated the payment terms is "£X six-monthly, " and the due date is "22/Jul and 22/Jan of every applicable year."

When viewing the flat, we specifically asked about the type of contract after 6 month and was told we can have a monthly rolling contract afterwards. We don't want to commit to another 6 month because we are looking to buy a place soon.

So I contacted the agent, the person responsible for handling my case was not in, a newbie in the office told me that because we paid 6 month in advance, we can't have monthly contract afterwards. I told her I believe that legally I can pay monthly with a monthly rolling contract, she went and ask somebody else in the office, and then told me "yes, it should be fine, it's probably just the standard wording on the contract and I don't have to worry about it."

We feel very uncomfortable signing a contract that state we have to pay every 6 monthly but at the same time don't want them to think we are difficult tenants and not renting the flat to us. How can I get them to change it, if it's possible at all?

DumbMuscle

Does the contract have a termination date? The only way I can see this being good for you is if the original contract ends in 6 months (i.e. the 6 month rental period is just a useful legal fiction for paying the lot in advance). otherwise, you definitely want to get this changed - probably to a 6 month AST (paid in advance) which specifies a 1 month rolling CPT afterwards.

The contract end date determines how long you are locked in. The dates you pay your rent, and how much you pay each time, are less relevant (depending on what the notice terms on any break clauses are).

cybervic

DumbMuscle wrote: »

Does the contract have a termination date? The only way I can see this being good for you is if the original contract ends in 6 months (i.e. the 6 month rental period is just a useful legal fiction for paying the lot in advance). otherwise, you definitely want to get this changed - probably to a 6 month AST (paid in advance) which specifies a 1 month rolling CPT afterwards.

The contract end date determines how long you are locked in. The dates you pay your rent, and how much you pay each time, are less relevant (depending on what the notice terms on any break clauses are).

Thanks, it says "The Term of the Tenancy: 22/Jul/17 to 21/Jan/18" on the contract, and then followed with "rent payable" and "rent due date" section.
so I am guessing this means the contract terminates at 21/Jan/18?

always_sunny

only if the LL allows it; it depends on the LL really.
After the first term expires, unless there's notice it will automatically become a rolling contract.
Many LL however prefer set terms.

DumbMuscle

cybervic wrote: »

Thanks, it says "The Term of the Tenancy: 22/Jul/17 to 21/Jan/18" on the contract, and then followed with "rent payable" and "rent due date" section.
so I am guessing this means the contract terminates at 21/Jan/18?

Yes - so what you have is a 6 month AST, with the rent payable every 6 months - so you are only locked in until 21 Jan 2018. What does the contract say happens after the termination date? If it doesn't say anything, then the contract will default to a Statutory periodic tenancy - though someone more knowledgeable than me will need to tell you what the tenancy period of the SPT would be (I think monthly, but I can't back that up).

See: Ending/renewing an AST: [/B]what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

Or you and the LL can negotiate a new CPT to start when the original term ends, on whatever terms you wish (either as part of this contract, or at a later date).

AndyTails

DumbMuscle wrote: »

Or you and the LL can negotiate a new CPT to start when the original term ends, on whatever terms you wish (either as part of this contract, or at a later date).

A Contractual Periodic Tenancy (CPT) can have (maybe always has, I'm not sure) the terms of the periodic tenancy set down in the AST. It sounds likely to me that the OP's contract has terms for after that AST ends: it goes into a 6-month rolling contract with every 6 months' rent being paid in advance. I believe this would be completely legal.


OP - I would be very careful about signing this contract, as I suspect you may not get the rolling tenancy you desire.

ThePants999

This would worry me, as you'd have to give one full period's notice under SPT rules. If they're defining a period as six months, that's a lot of notice!

Pixie5740

How frequently does the TA say the rent should be paid weekly, monthly, 4-weekly, 6-monthly, etc.....

cybervic

Um, it sounds alarming, How do I find out if they define "periodic" as 6 month or monthly?

this is part of the contract:

Pixie5740

Your tenancy periods are 6 monthly. That's going to make serving notice interesting. On the plus side there's absolutely no benefit to you signing another 6 month fixed term contract after this one ends.

saajan_12

cybervic wrote: »

Um, it sounds alarming, How do I find out if they define "periodic" as 6 month or monthly?

this is part of the contract:

That sounds like the 'periods' are 6 months each. IF there is not mention of what happens beyond the fixed term, then it rolls into a Statutory Periodic Tenancy after, with the same periods. So,

- you can leave by the end of the initial fixed term with no notice
- if not, a rolling tenancy is created with 1 period (6 month) notice on your part, and rent payable 6-monthly

In your place, I would do one of the following
1. get the contract changed to a monthly tenancy, stating the rent as a monthly figure, but that 6 months is payable upfront.
2. Add a clause specifying a Contractual periodic tenancy after the end of the fixed term, with monthly periods and specifying 1 month notice for you (LL can be 2 calendar months, in keeping with the spirit of a monthly SPT
3. Go elsewhere