Rolling contract (periodic tenancy) - good / bad?
Discussion
Management agency for my rented house has contacted me about the tenancy renewal.
The tenants want to go on a rolling contract with 2 months notice and I can give 2 months notice as long as it's 2 months to renewal.
I know nothing about the advantages or disadvantages.
Should I grab them by the hand or throat?
Ta.
The tenants want to go on a rolling contract with 2 months notice and I can give 2 months notice as long as it's 2 months to renewal.
I know nothing about the advantages or disadvantages.
Should I grab them by the hand or throat?
Ta.
Depends what you want really.
Their position is probably that they don't want to commit to the usual 12 months - could be job-related (looming redundancy, possible relocation or new job elsewhere), they could be looking to buy their own place, could be any number of other reasons. Might blow over and they'll stay, or they could be seriously looking elsewhere but don't want to give notice yet and fix a date.
Advantage of taking it is that you get to have tenants for the time being paying you rent till they decide to leave. Downside is that you don't know when that would be.
Their position is probably that they don't want to commit to the usual 12 months - could be job-related (looming redundancy, possible relocation or new job elsewhere), they could be looking to buy their own place, could be any number of other reasons. Might blow over and they'll stay, or they could be seriously looking elsewhere but don't want to give notice yet and fix a date.
Advantage of taking it is that you get to have tenants for the time being paying you rent till they decide to leave. Downside is that you don't know when that would be.
OK - I should know this but I don't;
Is there any disadvantage to me as a LL in going for a rolling contract rather than insisting on a new AST?
On an AST they need to give 2 months' notice iirc so they have a slight advantage on the rolling contract in that they can get out quicker.
Is there any other advantage to them?
Is there any disadvantage to me as a LL in going for a rolling contract rather than insisting on a new AST?
On an AST they need to give 2 months' notice iirc so they have a slight advantage on the rolling contract in that they can get out quicker.
Is there any other advantage to them?
rfisher said:
OK - I should know this but I don't;
Is there any disadvantage to me as a LL in going for a rolling contract rather than insisting on a new AST?
On an AST they need to give 2 months' notice iirc so they have a slight advantage on the rolling contract in that they can get out quicker.
Is there any other advantage to them?
It gives them flexibility over security - they only have to give you 1 month but they could also be out at with only 2 months from you at any time. It's that simple. All other aspects of the original AST stand. Is there any disadvantage to me as a LL in going for a rolling contract rather than insisting on a new AST?
On an AST they need to give 2 months' notice iirc so they have a slight advantage on the rolling contract in that they can get out quicker.
Is there any other advantage to them?
Firstly, a Periodic Tenancy gives both the LL and tenant the same legal rights, including Notice to terminate the Tenancy of TWO months Notice by the LL, and ONE months Notice from the tenant.
The difference in renewing the tenancy Agreement now with a new 6 months term AST, is that the LL can not give the tenant Notice to terminate the AST, until 4 months time (4 + 2 months=6months term), and the tenant can not give Notice until 5 months time (1 + 5 months = 6months).
So obviously the tenant not wanting a new fixed term AST, but for the present agreement to roll over thereby becoming a Periodic Tenancy, is that there is a possibilty the tenant will presently be on the move.
As a LL myself, if a tenant requested a Periodic Tenancy, then I would agree to the same, since I would much rather still be obtaining a rent/income from the property, rather than an empty property, which in my area of the UK, there are lots.
The difference in renewing the tenancy Agreement now with a new 6 months term AST, is that the LL can not give the tenant Notice to terminate the AST, until 4 months time (4 + 2 months=6months term), and the tenant can not give Notice until 5 months time (1 + 5 months = 6months).
So obviously the tenant not wanting a new fixed term AST, but for the present agreement to roll over thereby becoming a Periodic Tenancy, is that there is a possibilty the tenant will presently be on the move.
As a LL myself, if a tenant requested a Periodic Tenancy, then I would agree to the same, since I would much rather still be obtaining a rent/income from the property, rather than an empty property, which in my area of the UK, there are lots.
rfisher said:
OK so now they're saying they'll leave if I don't agree to go to rolling contract.
Think I'll chuck them as I still can't decide if it's better to insist on renewing the AST and the agency can't be bothered to advise me as to what's best.
Great.
You might want to talk to the tenants direct on this one. Last place I rented, when it came to the anniversary, the agents wanted me to sign another AST, with the same ridiculous fees. Quick chat with the landlord, and it turned out they wanted fees from him too. Erm, do one, squire.Think I'll chuck them as I still can't decide if it's better to insist on renewing the AST and the agency can't be bothered to advise me as to what's best.
Great.
No real downside to you, and no upside for involving the agents at all, as far as I can see.
I am, obviously, not a letting agent
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