Letting agency insists on upfront 6 month renewal payment as I am self-employed

propertyrental

Ah! Then that solidifies their claim for 6 months upfront. You have agreed to a 6 monthly rent of £9000, and rent in advance is the norm. t also has implications on the notice period.

However it means the subsequent clause is meaningless:

thereafter shall continue as a monthly contractual periodic tenancy on the same terms and conditions until terminated by eather party.

You have a 6 monthly rent, so the subsequent periodic (rolling) tenancy will not be monthly, it will be 6 monthly.

In 

LAINE	Appellant
	- v -
	CADWALLADER

MR JUSTICE DAVID STEEL ruled that

 for a tenant to terminate a periodic tenancy notice is required. As to the length of the notice required, the principle which generally applies, and which would be applicable in this case, is that the notice should be equal to at least a period of the tenancy and expiring at the end of the period of the tenancy (see Hill & Redman's Law of Landlord & Tenant, Vol 1 A 8127).

_Penny_Dreadful

Geez Louise, what a silly contract. In the OP’s shoes I would stop contacting the mouth breather letting agent, let the tenancy become periodic and just pay monthly. Then, if a section 8 is issued and it goes to court which I doubt it will, I’d plead ignorance over the confusing contract. 

apvit

Yes I was a little confused signing the contract but reassured myself by the words "thereafter shall continue as a monthly contractual periodic tenancy". I don't understand is there any reason in why they insist I need to pay 6-monthly, do they think I will stop paying or do they expect one day I decide to leave early and they'll have money I have overpaid? And why do they say I cannot pay monthly because I am self-employed?

apvit

I looked again and another funny bit is the period of notice. The contract I signed says "Where the tenancy becomes a periodic tenancy at the end of the fixed term the Tenant is required to give at least 28 days notice (or one month in the case of a monthly tenancy) in writing to end the teneacy. The Tenant's notice must end on the first or last day of a period of the tenancy in accordance with the common law rules." So confusing. If I pay 6 months upfront will it bind me for 6 months?

propertyrental

apvit said:

I looked again and another funny bit is the period of notice. The contract I signed says "Where the tenancy becomes a periodic tenancy at the end of the fixed term the Tenant is required to give at least 28 days notice (or one month in the case of a monthly tenancy) in writing to end the teneacy. The Tenant's notice must end on the first or last day of a period of the tenancy in accordance with the common law rules." So confusing. If I pay 6 months upfront will it bind me for 6 months?

I've already commented on the poor and ambiguous wording of the contract. Is it a 6 monthly periodic tenancy as suggested by the rent (£9K) being quoted as 6 monthly? This would justify the 6 months advance rent. And require longer notice period.

Or a monthly periodic?

The notice period is pretty standard for a weekly (28 days) or monthly (1 month) periodic tenancy. Ending the notice on first/last day of a period is pretty standard.

But the text of the notice requirement reinforces the claim that this is a monthly periodic tenancy, not 6 monthly (which would normally require a longer notice period). If you'd paid 6months in advance and gave the required 1 months notice, you should get back the advance rent paid. In theory. In practice you might have an argument......

ArbitraryRandom

_Penny_Dreadful said:

Geez Louise, what a silly contract. In the OP’s shoes I would stop contacting the mouth breather letting agent, let the tenancy become periodic and just pay monthly. Then, if a section 8 is issued and it goes to court which I doubt it will, I’d plead ignorance over the confusing contract. 

I would suggest that depends on if the OP has been discussing this with the agent in writing. Best bet might be to look for an alternative property and plan to move at the 6 month mark during the initial term. 

apvit

Appreciate everyone's advice, I'll speak to the agency and will try to insist on what I want and if not they will get my notice.

propertyrental

apvit said:

Appreciate everyone's advice, I'll speak to the agency and will try to insist on what I want and if not they will get my notice.

I still see little point in speaking to them. Though I suppose they might roll over and let you tickle their tummies and then offer you a new contract on your terms......

"they will get your notice"? why?

a) provided you vacate when the fixed term ends (and not a day later) no notice is required. That's what 'fixed term' means!
b) make absolutely sure you have somewhere to go before doing anything
c) be aware that if you serve notice and then don't move out, you could be charged double rent.

apvit

Thank you propertyrental. Wow I did not know that when the fixed term ends I can simply vacate and there's no need for notice.

_Penny_Dreadful

ArbitraryRandom said:

_Penny_Dreadful said:

Geez Louise, what a silly contract. In the OP’s shoes I would stop contacting the mouth breather letting agent, let the tenancy become periodic and just pay monthly. Then, if a section 8 is issued and it goes to court which I doubt it will, I’d plead ignorance over the confusing contract. 

I would suggest that depends on if the OP has been discussing this with the agent in writing. Best bet might be to look for an alternative property and plan to move at the 6 month mark during the initial term. 

I don’t see what difference a few emails would make. I’d expect the court to go off the contract not some emails and the contract says it will continue as a monthly contractual periodic tenancy. It just so happens that contradicts another clause in the agreement but I’d expect the court to find it reasonable that the tenant thinks there’s a monthly contractual periodic in place once the fixed term ends.