Are we allowed a rolling monthly contract?

G_M

As saajan says, the contract could easily specify that following the iniial 6 months fixed term, a monthly Contractual Periodic Tenancy will arise with rent payable monthly in advance.

The problem with the agent's proposal is that the options after 6 months are

* tenant leaves
* tenant moves to a 6 monthly periodic tenancy
* landlord might or might not offer a monthy periodic - no guarantee!

cybervic

Thank you everyone. The agent does not charge a fee for renewal so I guess I am fine if they want to re-referncing me come 6 month time.

My landlord did not specificaly request for a 6 month periodic contract. So I asked the agent if it's company policy that don't allow monthly contract for tenant who pay 6 monthly rent. She told me it's the law that restricts it, not them. She said "when tenants choose to pay for 6 month, then the contract has to be written " X amount 6 monthly" and accordingly because they are not allowed to take extra payment if the contract says monthly.

She (and her colleagues/boss) seem very certain that's how the law required them to do. She said she will contact ARLA to get a clarification though.

Has there been a change of law recently then, or most other agents doing it wrong? I had advised many students on finding private housing up until few years ago and never seen such contract. I would like to get to the bottom of this if its not too time-consuming to find out, not that I want to fight anyone, just want to know my right that's all.

G_M

No change in the law.

She is right so far as the fixed term is concerned.

And she is right so far as a subesequent Statutory Periodic Tenancy is concerned (it would be 6 monthly, since that is what the rent payment schedule for the fixed term was).

But a subsequent Contractual Periodic Tenancy can be on whatever terms or basis is written into the contract - that's what 'contractual' means.

The contract specifies exactly what happens when the fixed term ends if the tenant does not leave, rather than relying on the Housing Act (statute) to specify the terms.

An ARLA agent really ought to understand ths!

saajan_12

cybervic wrote: »

Thank you everyone. The agent does not charge a fee for renewal so I guess I am fine if they want to re-referncing me come 6 month time. - they may still charge a fee for referencing. Renewal often just covers signing a new contract under the same broad terms. Also, they can choose not to renew.. zero fee, but you have to leave or take the 6monthly rolling.

My landlord did not specificaly request for a 6 month periodic contract. So I asked the agent if it's company policy that don't allow monthly contract for tenant who pay 6 monthly rent. She told me it's the law that restricts it, not them. She said "when tenants choose to pay for 6 month, then the contract has to be written " X amount 6 monthly" and accordingly because they are not allowed to take extra payment if the contract says monthly. I don't think so. They can take extra payment upfront by specifying the rent payment date to be upfront. Since you would 'live out' the rent payment rather than expecting it to be returned at the end, it would not be considered a premium deposit or anything.

She (and her colleagues/boss) seem very certain that's how the law required them to do. She said she will contact ARLA to get a clarification though. sounds like they genuinely believe they have to do it 6monthly, but are trying to work with you.

Has there been a change of law recently then, or most other agents doing it wrong?- no law change, but most other agents could be doing it wrongly I suppose! I had advised many students on finding private housing up until few years ago and never seen such contract. I would like to get to the bottom of this if its not too time-consuming to find out, not that I want to fight anyone, just want to know my right that's all.You don't have a RIGHT to a monthly contract,
it's still a negotiation. But I don't buy the agent's reason that they
HAVE to do it 6monthly

The agents could, right now,
a. make the contract £1000 monthly, 6 month fixed term, 6 months worth of rent payable on start date.
b. leave the 6monthly contract but add a clause specifying a monthly CPT after the fixed term

If they do neither right now, with all the good will, there's no guarantee that later they won't charge for referencing or refuse a monthly contract outright.