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Renewing your tenancy agreement

Most tenancy agreements, like the Assured Shorthold tenancy start having a fixed term. During the fixed term there could be no alterations on the tenancy agreement unless both parties agree.
The positives associated with a fixed term tenancy

The fixed term provides you with an assurance that the home you rent can provide exactly the same problems at the very least until the time ends.

For instance, when the landlord desires to boost the rent, they need to wait for the fixed term to end, and acquire the tenant’s endorsement and ask them to sign an extra agreement. The landlord cannot make use of a Section twenty one notice first and also finish the tenancy before the fixed term has expired.

The fixed term also calls for you to lease the property for the whole time. Landlord’s are assured that the tenant is going to stay and pay rent for no less than twelve months.

When the fixed time ends, you will find a few items which could happen:

The tenancy is renewed for the new fixed term
The tenancy immediately rolls right into a periodic tenancy
The tenant or even the landlord decides to not continue the tenancy

If your agreement is an assured shorthold tenancy (AST) and also you want to keep in the home after the fixed expression, a brand new written agreement (or maybe renewal’) is not vital. The tenancy turns into a periodic tenancy’ and continues with exactly the same conditions and terms as before.

The period’ inside a periodic tenancy is equivalent to that that the rent is payable. For instance, where rent is paid out monthly, the period’ will usually operate from month to month.

This is extremely common practice and periodic tenancies can, in several instances, continue for a lot of years. Nevertheless, there’s advantages and also factors for renewing the tenancy for another fixed period.
The positives associated with a periodic tenancy

Process for ending a periodic tenancy even more flexible as there’s simply no extensive fixed’ time to discover out and is of particular interest to tenants that go often for job commitments. This enables tenants the flexibility to search for other home and also provide notice to the landlord when they want.

Additionally, it allows landlords to stop the agreement should they want to renovate and take occupation of the home for some other reasons. Offered that the appropriate legal notice procedures are implemented, the landlord or maybe tenant is able to decide to cease the understanding at any time after the fixed phrase that suits best suits them.
Reasons for renewal

At the conclusion of the fixed term notice period certain tenants choose to restore the tenancy for other fixed term. The advantage of this is longer term security and knowing every exactly where another party stands. This is especially widespread for families with school aged kids in which the repair is a signal of future planning and dedication.

On another hand, the landlord of yours might ask you to sign a repair in case they wish to alter the conditions of your respective tenancy agreement. This usually means that an increased rent or even an update to comply with new legislation.

If either party would like to restore there’s apt to become a small charge to pay. Many landlords are ready to cover the price of this in exchange for an extended tenancy with total occupancy of the home. If you’re requested paying this fee you might love to recommend sharing the price with the landlord. If your landlord insists on you paying the renewal fee, you need to talk with them. Remind them just how costful finding new tenants is, as opposed to just addressing the fee.