Renters' Rights Act and Fixed Term Contracts

p4t12

Hi everyone.

I'm between properties and i need to rent somewhere - i've had an offer accepted but the Agent wants a fixed term 12 month contract.

I'm under the impression that come the 1st of may then and AST reverts automatically to a periodical one.

It seems wierd with this in mind that they are asking for a 12 contract.

I may well be there for 12 months but i'd prefer to have the protections afforded by the new laws.

Is there anyway they could prevent this happening?

Is it sensible to sign a 12 month contract now?

thanks in advance

mills112

Until the new laws come in, the AST is still in place so even if you sign the 12 months contract, you will still not be tied into the property come 1 May subject to you giving 2 months notice.

That is my understanding. If anyone knows different then please advise.

p4t12

Thanks for your reply

They have added this to the contract.

SCHEDULE 2 – ADDITIONAL TERMS AND CONDITIONS
The Parties agree that the following Additional Terms and Conditions have been individually
negotiated and agreed between the Parties are binding. Where there is any contradiction between
the standard terms in the Agreement set out above and the following Additional Terms and
Conditions, the Parties agree that the following Additional Terms and Conditions shall prevail:
The following clauses have not been drafted or approved by Rightmove:

1. The property does not come with a parking space.
2. Should either party wish to terminate the Tenancy, it is agreed that a minimum of 2 months
   advance written notice must be served on the other party and the tenancy must not expire
   within the first 10 months of the Tenancy commencement date.
3. Please ensure the garden is maintained during your tenancy

monkey-fingers

They can put what they like in the tenancy agreement.

Statutory rights override anything in the tenancy agreement.

They do this, because they can charge the Landlord a fee.

mills112

https://forums.moneysavingexpert.com/discussion/comment/81929439#Comment_81929439

as someone had already said, the housing laws will always override whatever is agreed in the rental contract so it won't matter about the 10 months clause. until 1 may, the old AST will continue to be issued as they are still currently legal.

caprimad

https://forums.moneysavingexpert.com/discussion/6660333/renters-039-rights-act-and-fixed-term-contracts

Based on the reading I've done, I agree with everything that's been said so far; but for clarity:

• You are correct that, from 1st May, your tenancy will convert to a periodical tenancy, which requires you to give at most 2 months notice to leave. There's no minimum time, so in theory you could move in, give notice on the 1st May, and move out 2 months later.
• The "12 month contract" IIRC was pretty normal for an AST (although IME it was usually 3 years).
• You will automatically get the protection of the new laws come 1st May. Irrespective of anything else, your tenancy WILL convert to a periodic tenancy on the 1st May.
• No, there is no way they can prevent this happening.
• Sure - you can sign any contract you like! Come 1st May, the law changes so that:
  • the landlord cannot legally evict you except under some very specific circumstances (basically, if you're being delinquent in the property - e.g. causing damage, or not paying the rent for an extended period of time)
  • you can give 2 months (or less, if agreed in the tenancy agreement by you both) notice to leave, for any reason, at any time.
  • IIRC there are specific conditions on increasing the rent, which I believe have to be set out and agreed by you both in the tenancy agreement.

Long story short: The new laws basically protect you from being evicted for no reason (e.g. the landlord wishes to bump up your rent, or put someone else in the property for any reason); you are protected from unfair rent rises. There's some stuff related to deposits as well - to the point where I'm wondering if taking a deposit is even worth the hassle these days.

Full disclosure: I'm not a landlord (yet).

monkey-fingers

https://forums.moneysavingexpert.com/discussion/comment/81930531#Comment_81930531

A Landlord can bump up the rent to the market average.

So if someone is paying £800 a month, even though the local average is £1000 a month, then the Landlord can serve and S13 (only once a year).

And with rents rising across the UK, that's something a Landlord can easily do.

The tenant can ask for the rent to be assessed at tribunal, but ultimately, if the tribunal says the rent is fair, the tenant has to pay it.

I think there will be a lot of this going on.

Although as a LL, the question I'd be asking is "Why would you want to get rid of a paying tenant?"
I've not had too many problems, although a lot of forums and groups I'm in, they've had terrible times.