Converting to a 12 month tenancy agreement

by Readers Question

20:52 PM, 25th November 2013
About 7 years ago

Converting to a 12 month tenancy agreement

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Converting to a 12 month tenancy agreement

Hi Mark,

This is my first property and the initial 6 month tenancy agreement is finishing at the end of this month.

As a newbie I am wondering if there is anything I should be aware of or actioning before I agree to a 12 month tenancy agreement.

Although my tenant has been very good and kept the house in excellent order I am aware that she is looking at a possible change of job and working further away from home. I’m guessing this change could effect her housing benefit and income levels as she is currently on a 3-day week. Would it be sensible at this stage to do any other checks or ask any questions for clarification before we get tied into a 12 month agreement?

I do not have copies of the original application or the references. Should I request a copy of these from the letting agent to review before proceeding further? Converting to a 12 month tenancy agreement

The rent is covered by RGI.

Regards,

Suzanne



Comments

Mark Alexander

21:04 PM, 25th November 2013
About 7 years ago

Hi Suzanne

Are you sure you have RGI insurance? That would be very unusual for a tenant on benefits to qualify for? Which company is the underwriter of the policy? Did the tenant have a guarantor?

Sorry about all these questions but is renewal of the tenancy agreement a condition of the RGI? How long was the RGI in place for?

Unless the renewal of the tenancy agreement is somehow tied into the renewal of the RGI then I can't see why you would want to renew. Why not simply allow the tenancy to roll over to a a Statutory Periodic tenancy. That way you could get the tenant out with just two months notice and your tenants could leave by giving just 30 days notice to you. That arrangement can continue forever. Do you both really want to commit for another 12 months?

Either way, your agent will either needs to provide a new set of prescribed information in respect of tenancy deposit protection or reprotect the deposit and issue a new deposit protection certificate and prescribed information. Your agent may wish to charge you a fee for organising all the extra paperwork but the reality is that it's usually completely unnecessary.

If your letting agent used a an RGI company to do the referencing the chances are that only a report confirming acceptance or failure will have been provided. This is because RGI companies generally do their own referencing before they agree to accept the RGI risk.

I hope this helps.
.

12:44 PM, 26th November 2013
About 7 years ago

Hi Mark,
Just to clarify on RGI - i have worked for some agents that offer this off their own back - no underwriters and they then are the ones that pay out should the tnt not pay - i know sounds risky - but ive known a few that do.

I definately agree, a periodic seems the sensible option given that the tenants circumstances may change in the near future.

user_ 685

13:51 PM, 26th November 2013
About 7 years ago

Obfuscated Data

Mark Alexander

14:11 PM, 26th November 2013
About 7 years ago

You are in safe hands, the other alternative is a Deed of Assurance, see our legal section

user_ 685

20:27 PM, 27th November 2013
About 7 years ago

Obfuscated Data

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