Rent calculation on Periodic Tenancy termination by tenants

Rent calculation on Periodic Tenancy termination by tenants

11:01 AM, 4th March 2019, About 3 years ago 7

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Hi everyone. I would like to seek advice on final rent as terminated by my tenants.

Original AST signed through agent (introduction service) on 27/10/15 for 12 months. An amendment was signed directly with tenants on 27/10/17 with rent increased, other clauses remain. New deposit certificate issued although deposit amount unchanged. After 27/10/18 the contract became periodic. The relationship was excellent until now.

The original terms say tenants can terminate the contract with minimum a month notice after 4 months, and notice period ends on the last day of a period. There’s only rent apportionment mentioned in event of fire.

The tenants noticed me on 8/2 that they are moving out on 9/3 and I accepted it. I got new tenants from 10/3 with increased rent. When rent payment date came on 27/2, tenants paid me monthly rent*12 months/365 days*11 days for the final rent. I drew their attention to both clauses of min one month notice and notice expiry at the end of tenancy period, but they said now it’s periodic and so one month notice only according to common law.

Who’s correct in final month rent? If I am, what is best way to resolve this?

Many thanks for your advice.

Joe



Comments

by Neil Patterson

11:13 AM, 4th March 2019, About 3 years ago

Hi Joe:

If I have understood correctly you have no void period so this example can be filed under result 🙂

From Shelter so this is the advice given to tenants:

How much notice to give

You must give the correct date for when your notice period ends. Your notice letter won't be valid otherwise.

Check your tenancy agreement. If it sets out the amount of notice you must give your landlord, follow what your agreement says.

If your tenancy agreement doesn't set out a notice period, you must give your landlord at least:

1 month's notice for a monthly tenancy
4 weeks' notice for a weekly tenancy

Your notice must end on the first day or last day of your tenancy period. This is not always the date you pay your rent so check your agreement carefully.
Monthly tenancy end dates

If your tenancy started for example on 15 April:

the last day of your tenancy period will be 14th of the month
the first day of the next tenancy period will be 15th of the month

It's easier to calculate the final month's rent if you give notice to end on the last day of the tenancy period.

by Clint

12:21 PM, 4th March 2019, About 3 years ago

I am in a similar situation where last week, a tenant gave me a notice to leave where she ended the tenancy on a date which was not at the end of the periodic month and this was on advice from someone I believe from the council. The tenancy agreement clause stated that the tenancy must end at the end of the periodic month.

It was pointed out to me that section 5 of the Housing Act 1988 applied which I did not find easy to understand.

I was informed that since the fixed term had ended, one month's notice had to be given and could end at any time and did not need to end at the end of the periodic month.

Just out of interest, can a landlord have a clause stating that two month's notice is required and if so, would this be valid during the periodic term of the tenancy. Landlords have to give two months notice to terminate the tenancy S21.

by Ray Davison

12:48 PM, 4th March 2019, About 3 years ago

Joe,
Your existing Tenants should have given notice to end on 27/3 and you should have confirmed this with them rather that agreeing to their request to a short notice period

Given the position you are in n ow, If you want to attempt to enforce your existing Tenants to honour their Tenancy until 27/3 then you should not have granted a Tenancy to new Tenants commencing on 10/3. You cannot have your cake and eat it! So either fight with your existing Tenants and change the commencement date of the new Tenancy or just accept the the reduced notice and let you new Tenants take occupation on 1o/3. I know what I would do!

by Ray Davison

12:50 PM, 4th March 2019, About 3 years ago

Reply to the comment left by Clint at 04/03/2019 - 12:21
You cannot put a Tenant notice period of longer than one calender month into your Tenancy Agreement - or if you do it is illegal and will be over-ridden by The Housing Act

by silversurfer2017

18:55 PM, 4th March 2019, About 3 years ago

I would just be thankful that I've have had good tenants for over 3 years and that the tenancy has just ended with no void period.
I will be selling one of my properties in about 12 months time because I am relocating to a different part of the UK. The tenant has been with me nearly 12 years and always paid the rent on time. I will be giving him 2 months notice on a periodic tenancy. I will not hold him to it if he finds and wants to move in to another property after say 5 weeks and will refund any rent overpaid. Similarly I will not be unduly fazed if he wants to stay a week longer if he can't move into his new place until then.
Using a bit of empathy, as a tenant it must be difficult for tenants to time exactly their moving dates if going to another rented property or even moving into a property they are in the process of buying so a good landlord should allow some flexibility if he/she can.

by AP

7:39 AM, 9th March 2019, About 3 years ago

Hi Joe,

I was under the impression that if it becomes a periodic tenancy then notice does not have to be served in line with a rental period - but I don’t know the legislation so I would check the housing act yourself if you want to be sure.

I always take the line that if a tenant wants to move out early (even in contract) that’s fine as long as I’m not out of pocket (void period and agents fees for example). In this case you aren’t out of pocket so even if the tenant is wrong about the notice period, it shouldn’t matter.

by Robert M

23:36 PM, 10th March 2019, About 3 years ago

This is a boring technical legal point I was one told. How accurate it is I do not know. You cannot unilaterally end a periodical tenancy, it automatically renews for (usually monthly rent) a month. What you actually do is give notice you do not want it to renew at the end of a period, which is why notice always had to expire at the end of a period. How this reconciles with the "new" rules for section 21 notices I do not know. Of course both parties may agree short notice.


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