Beyond the Fixed Term of the Tenancy a landlord has 3 choices:
1. Allow tenancy to continue
2. Grant a new tenancy
3. Terminate tenancy
Each of these options is explained below.
1. Allow Tenancy to Continue
If a landlord wishes to allow the tenancy to continue beyond the fixed term on the same terms, there is no need to take any further action. Depending on the terms of the Tenancy Agreement, the tenancy will either continue as a ‘contractual periodic tenancy’ or ‘roll over’/’hold over’ and a new ‘statutory periodic tenancy’ is automatically created. If the rent is paid monthly, the ‘period’ of the tenancy will run month to month. The terms and conditions imposed on the landlord and tenant at the start of the tenancy will continue.
During the periodic tenancy, if a landlord wishes to terminate the tenancy they must give the tenant a minimum 2 months’ notice that they require possession.
During the periodic tenancy, if the tenant wishes to terminate the tenancy they must give the landlord one months’ notice in writing. Unless stipulated otherwise, the notice period will be one full rental month.
The advantage of this option is you do not need to wait until the end of a fixed term to get possession of the property. The disadvantage of this option is the tenant does not need to wait until the end of a fixed term to end the tenancy.
• Action a landlord will need to take if they want to allow the tenancy to continue – Nothing
2. Grant a New Tenancy
Granting a new tenancy to the same tenant for the same, or substantially the same, premises is referred to in law as a ‘’ and is commonly referred to as a renewal. If a landlord wishes to grant a new tenancy they may want to consider whether it is on the same terms as the previous tenancy or whether they want to vary any of the terms.
Commonly, a break clause is added to aAgreement entitling both parties to end the tenancy early. For replacement tenancies without a break clause included, neither party would be entitled to end the tenancy until the end of the new fixed term.
The advantage of this option is the tenant must wait until the end of a fixed term to end the tenancy. The disadvantage of this option is you must wait until the end of a fixed term to get possession of the property.
• Action a landlord will need to take if they want to grant a new tenancy on the same terms – Using the previous Tenancy Agreement as a template, prepare aAgreement and arrange for it to be signed.
• Action a landlord will need to take if they want to grant a new tenancy on different terms – Using the previous Tenancy Agreement as a template, insert, update or delete any terms as required in theAgreement and arrange for it to be signed.
3. Terminate the Tenancy
If a landlord wishes to terminate the tenancy at the end of the fixed term, they must serve the tenant a notice telling them the landlord wants possession. The notice must give the tenant not less than two months’ notice and cannot be served in the first 4 months of any tenancy. This is known as anotice.
• Action a landlord will need to take if they want to terminate the tenancy – Serve anotice.
Landlord Handbook – Chapter 5
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