Ending a Tenancy – How to Give Notice Correctly

One of the most common questions landlords ask is how to give notice to end a tenancy. To address this, I’ve crafted this article to explore the various scenarios under which a standard Assured Shorthold Tenancy (AST) may be terminated and to outline the correct processes for each situation.

Throughout this article, we will assume the tenancy is a standard Assured Shorthold Tenancy (AST).

1. Tenant Leaving at the End of a Fixed Term

A common misconception is that tenants must give notice to end a tenancy. However, if a tenant plans to vacate on the last day of their fixed-term agreement, they are not legally required to give notice. While it is helpful for management purposes if they do, tenants cannot be expected to pay an additional month’s rent if they don’t provide notice.

2. Tenancy Becomes Periodic

When the fixed term of an AST ends, the tenancy can become either a statutory or contractual periodic tenancy. It’s crucial to know which type you have, as the rules differ:

• Contractual Periodic Tenancy: This occurs when the fixed-term agreement includes a clause stating the tenancy will continue on a month-by-month basis under the same terms. In this case, all original terms, including those for rent increases and tenant notice, carry over.
• Statutory Periodic Tenancy: This occurs when there is no continuation clause. The law then governs the tenancy, and the original terms do not carry over. For a statutory periodic tenancy, tenants only need to give one month’s notice in line with the rent due date.

3. Early Termination

Sometimes, tenants may need to leave before the fixed term ends. While landlords are not obligated to agree to early termination, it’s often beneficial to cooperate to minimize losses and avoid void periods. Any costs associated with early termination must comply with the Tenant Fees Act 2019, which allows landlords to charge:

• Rent: Up to the day before a new tenancy starts.
• Advertising Costs: Exact out-of-pocket expenses.
• Referencing Costs: Direct charges from the referencing company.

Prohibited fees, such as check-out and check-in charges, must not be applied. It’s advisable to have the tenant sign a deed of surrender that outlines the agreed termination terms and costs. The security deposit will be handled as usual upon the tenant’s departure.

4. Break Clause

Many tenancy agreements include break clauses that allow either party to terminate the tenancy early with specific notice. However, the wording of break clauses can vary, and some may be poorly constructed, leading to ambiguity. It is important to thoroughly understand your AST’s requirements regarding the break clause. Note that you cannot charge a tenant for vacating early if they are exercising a break clause.

5. Landlord’s Notice to End the Tenancy

As a landlord, you can end a tenancy in two primary ways:

1. Section 8 Notice: Issued if the tenant breaches the tenancy agreement or if you need to move back in (Ground 1).
2. Section 21 Notice: Issued to end a tenancy without fault, giving a minimum of two months’ notice. Remember, even if a break clause is exercised, a Section 21 notice must still be issued.

Conclusion

Ending a tenancy can be complex, requiring careful consideration of legal and ethical factors. Both landlords and tenants should understand their rights and responsibilities. Clear communication, proper documentation, and adherence to legal protocols are essential for a smooth and fair transition. By following these guidelines, landlords and tenants can navigate the end of a tenancy with confidence.

ABOUT JULIE FORD

With over 30 years of extensive 360° experience in the Private Rented Sector, Julie Ford brings a wealth of knowledge and expertise to the table. Her career has encompassed roles from Housing Law Caseworker at a national solicitor firm to Head of Property and Asset Management in the City. She has had the privilege of managing properties for high-profile clients, including premiership footballers, actors, and A-list comedians.

Julie successfully founded and ran a Lettings and Property Management company, building an impressive portfolio of over 500 single-let properties. After selling the business, she transitioned to the third sector, providing specialist housing and homelessness law advice for Citizens Advice and working with a local homeless charity to optimize their mixed property portfolio and lease options.

Currently, Julie serves as a board member on the Zoopla Lettings Advisory Board and acts as a judge for several industry award ceremonies. She is also a frequent property commentator in the media. In addition, she is a qualified property and civil mediator with over 600 mediations to her credit, and a registered expert witness for the courts.