Statutory v Contractual Periodic Tenancy: what to issue?

Statutory v Contractual Periodic Tenancy: what to issue?

10:21 AM, 16th December 2020, About A year ago 44

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Despite having been a landlord for over 20 years, I only became aware yesterday of the existence of contractual periodic tenancies, as opposed to statutory periodic tenancies! I am now rather worried about this; when one of our fixed-term tenancies has come to an end I have – in good faith – been telling our tenants that their tenancy has now become a statutory periodic tenancy, and issued them with an updated Deposit Protection Certificate.

However, having read up on the difference between the two types of periodic tenancy, I am wondering if I should also have been sending them the most recent ‘How to Rent’ guide, and perhaps all the other paperwork associated with the start of a tenancy (EPC, Gas Safety Cert, etc), exactly as though it was a brand-new tenancy? Can anyone clarify this for me?

And if I assume I definitely should have re-issued the ‘How to Rent’ guide, could I retrieve the situation by sending the new version to all our tenants now? (We have one tenant where we may wish to issue a Section 21 notice in the next month or so, hence my worry about this!)

Many thanks

Annabel



Comments

by Annabel Blake

9:25 AM, 19th December 2020, About A year ago

Reply to the comment left by David at 19/12/2020 - 09:19
Ok, thanks. Although they told me they do the same as me at the start of statutory periodic, i.e. reissue Dep Protection Cert, they also said they send H2R and all the other bumph (EPC, EICR, etc) when they send out a Section 21, which I think is the point you are making. Interesting that there is no penalty for late issue of H2R! Where did you get this useful bit of info from?

by Puzzler

10:07 AM, 19th December 2020, About A year ago

Reply to the comment left by Annabel Blake at 19/12/2020 - 08:35
Yes that is what I understood but Prakash said his tenant benefitted from the contractual one, perhaps was a typo...

by Prakash Tanna

10:46 AM, 19th December 2020, About A year ago

Reply to the comment left by Puzzler at 19/12/2020 - 08:13
Hi, Sorry if what I said was confusing. Contractual PT is better for the landlord as it makes the tenant responsible for CT & utilities etc. until the 'legal' point in time the landlord regains possession whereas if it was a statutory PT then the landlord becomes liable the day the tenant leaves with or without notice.

On a irrelevant point here but one worthy or sharing as I recently clarified it to my annoyance ... if a tenant moves out before midnight the landlord is responsible for CT for that day. For example, a tenant moves out Sunday and new tenant moves in on Monday as is often the case, the landlord has to pay CT for the Sunday! Reference: LGFA 1992 s.2(1)

by Prakash Tanna

10:54 AM, 19th December 2020, About A year ago

Reply to the comment left by Puzzler at 19/12/2020 - 10:07
Correct! The landlord benefits from a Contractual PT v's Statutory PT and I can't see any benefit for the landlord in not having the contractual clause in place. Can anybody else?

As others have also mentioned, not having the clause allows agents to charge a fee to re-new the contract. Funnily I came across a situation in the recent weeks where an agent (not me!) charged the landlord a fee when the tenant decided to stay on after the fixed term ended on a Statutory PT basis but without signing a new contract. Clever agent had it in their t&c's that they can charge the full 12 months commission upfront and an additional fee of £150+vat as if they had signed a new contract even if they did not! IMO, that's totally wrong and unacceptable !!!

by Puzzler

11:30 AM, 19th December 2020, About A year ago

So check your agreements very carefully....

by Annabel Blake

11:54 AM, 19th December 2020, About A year ago

Reply to the comment left by Prakash Tanna at 19/12/2020 - 10:54
That is a bit sneaky! I have found this discussion thread extremely useful, and I will definitely be asking my regular agents to include a clause about continuing as Contractual Periodic in future (while checking for sneaky clauses re fees).
It just goes to show: even after 20+ years as a Landlord, and various training courses attended, you go on learning ....

by Prakash Tanna

12:11 PM, 19th December 2020, About A year ago

Reply to the comment left by Annabel Blake at 19/12/2020 - 11:54
As humans, we must evolve and learn something new everyday! haha There's so much to take on and things change all the time. These threads are very useful and I too am learning all the time. It's great for us Landlords to share knowledge and experience and make the industry a better place for all. Thanks for taking them time to take part.

by Seething Landlord

1:45 AM, 20th December 2020, About A year ago

Reply to the comment left by Annabel Blake at 18/12/2020 - 17:40
I do not agree that a statutory periodic is a new tenancy each month. It is created by operation of law under the Housing Act if at the end of the fixed term the tenant remains in occupation. This happens only once and the tenancy continues until terminated by agreement or by a Court Order granting possession to the landlord.

by Prakash Tanna

2:27 AM, 20th December 2020, About A year ago

Reply to the comment left by David at 18/12/2020 - 17:19I agree with you. Sorry i missed that comment early. The SPT is created once at that moment in time when documents need to be served and most definitely does not create a new tenancy month on month.
That agent is telling porkies or is trying to mislead you sorry.

by Seething Landlord

8:13 AM, 20th December 2020, About A year ago

Reply to the comment left by Prakash Tanna at 20/12/2020 - 02:27Or the agent is genuinely under the misapprehension that a periodic tenancy renews monthly. There was a similar comment on another thread fairly recently - I seem to remember that at the time of the Superstrike case when nobody really knew what was going on there was speculation to that effect and it might be a hangover from then.


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