eat tenants'12 months with a break option', or .....

[King Herald]

I just had a tenancy extension mail come thorough, offering us these options:

• 6 months with a break option.
• 6 months with NO break option.
• 12 months with a break option.
• 12 months with NO break option.

What exactly does this mean? We have no intentions of hoofing the tenants out, they've been in for 4 1/2 years and are great tenants, so which one should I tick?

I can't remember which one I ticked last year either.

[randlemarcus]

Option E. Tenancy becomes a Statutory Periodic Tenancy, with no fees for you or for the tenant.

[nyt]

^^^^ That

[King Herald]

randlemarcus said:

Option E. Tenancy becomes a Statutory Periodic Tenancy, with no fees for you or for the tenant.

Hmm, no option E on the page, not sure what it means either. We have an agent who runs the whole show for us because we live on t'other side of the world. They just send us stuff to sign every now and again.

ps. I'm not sure where the 'eat tenants' bit comes from in the thread title.

[Pheo]

The agent is doing this so they can charge you fees for "drawing up the tenancy agreement" - and probably your tenants as well.

Despite the fact that it'll roll into a 1 month rolling statutory period automatically.

Do you, or your tenants, need/want/seek a fixed term contract? IF no, then do nothing.

[King Herald]

We pay a set 12% rate, no extra fees for drawing anything up. I might give them a phone call, see what they say, and I'll mention this automatic 1 month rolling statutory period.

[dazwalsh]

Speak with tenant and see what they are happy with, ideally a 12 month contract with no break clause as it puts your mind at ease for another 12 months.

Its very strange that they dont charge a renewal fee, which can easily extend into 3 figures for 5 minutes work.

[markbigears]

go with what you are happy with. I like to get the tenant to sign a 12 month no break, so I know I'll have no void periods for another year. It also lets me know what situation the tenants are in, ie: are they thinking of moving on then they want want to sign.

[surveyor]

dazwalsh said:

Speak with tenant and see what they are happy with, ideally a 12 month contract with no break clause as it puts your mind at ease for another 12 months.

Its very strange that they dont charge a renewal fee, which can easily extend into 3 figures for 5 minutes work.

Bet they charge the tenant....

[King Herald]

As per my original question, what exactly is this 'Break option'?

[surveyor]

It gives someone (probably you, but it's not clear) the option to terminate the tenancy.

If it's you you'd still need to give two months notice.