Can this tenancy become periodic?

by Readers Question

14:57 PM, 29th September 2016
About 2 years ago

Can this tenancy become periodic?

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Can this tenancy become periodic?

This is a query about whether this particular tenancy can become periodic.baton

We have a flat which have let to the same tenant for two, consecutive, 12 month tenancies. In each case, the rent for the whole 12 months has been paid in advance. The tenant is a single mother but with some sort of family trust paying the rent. The deposit was protected at the beginning of each 12 month tenancy.

We are not in a position to grant another 12 month tenancy as we are making changes over the next year or so which may mean having to sell this property.

My question is, can we let the current tenancy just rollover into a periodic tenancy when the 12 months is up (October 31st) or does the fact that the existing contract stipulates that the 12 months rent is to be paid in advance whereas we would now want it to be paid monthly in advance, mean that we would have to grant a new AST for 6 months, paid monthly and then allow that tenancy to become periodic?

Apologies if I have got any of the terminology wrong!

Many thanks

Dougal



Comments

Hazel de Kloe

18:44 PM, 29th September 2016
About 2 years ago

Hi Dougal

As far as I'm aware, the tenancy could now roll on to a periodic at the end of your current 12 month fixed term agreement. I would imagine the fact that it states that the 12 months rent would be paid upfront only relates to the existing 12 month contract.

Have you spoken with you tenant already about your potential plans over the next year? It will also depend on whether she is happy to stay on the periodic basis, of course!

Hope that helps, and I stand to be corrected if anyone knows any different. 🙂

Hazel

angela

10:28 AM, 30th September 2016
About 2 years ago

Reply to the comment left by "Hazel de Kloe" at "29/09/2016 - 18:44":

As you have accepted 12 month's payment upfront, my understanding is that any "Period" as in Periodic tenancy would also be 12 months. This is something to consider when accepting any amount more than a single month's rent in advance. Your idea of granting a new 6 month AST with monthly rents payable in advance should resolve this problem, but please take legal advice on this as I am not a lawyer. Before the end of the next 6 month term you should write to the tenant to advise that upon expiry of that term the tenancy will become a contractual periodic tenancy (otherwise it will become a statutory periodic, which means that if the tenant vacates prior to the end of a period you will have to pick up the bill for council tax as soon as the property becomes vacant). Hope this helps.

Dougalbid Shersby

12:27 PM, 30th September 2016
About 2 years ago

Thank you for the replies. Problem solved as tenant has just emailed to give notice that she is moving out at the end of the tenancy. I'll definitely try to avoid payment in advance in the future though.

Michael Barnes

11:43 AM, 2nd October 2016
About 2 years ago

Reply to the comment left by "Dougalbid " at "30/09/2016 - 12:27":

I believe that the 'period' for a periodical tenancy is equal to the last rent payment under the fixed term.

Therefore a 12-month tenancy with 11 months in advance and 12th month due at beginning f 12th month would result in a monthly periodic tenancy.

I also have some recollection that regardless of the period, landlords only need to give 2 months notice, but tenants need to give notice ending on last day of rent period (but for 12-month period, this may be 3 or 6 months). Perhaps someone with more knowledge could confirm or deny this.


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