What options does the landlord have at the end of the initial period?

Beyond the Initial Period of the Tenancy the 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 the landlord wishes to allow the tenancy to continue beyond the initial period on the same terms, there is no need to take any further action. By taking no action, the tenancy will continue after the end of the initial period. As the rent is due monthly (the ‘period’), the tenancy will run month to month. The terms and conditions imposed on the landlord and tenant for the initial period will continue.

During the periodic tenancy continuing after the initial period, if the landlord wishes to terminate the tenancy they must give the tenant a minimum 2 months’ notice that they require possession of the property.

Conversely, during the periodic tenancy continuing after the initial period, if the tenant wishes to terminate the tenancy they must give the landlord one full rental months’ notice in writing.

The advantage of this option is the landlord does not need to wait until the expiry of an initial period to seek possession of the property. The disadvantage of this option for the landlord is the tenant does not need to wait until the expiry of an initial period to end the tenancy.

Action the 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 ‘replacement tenancy’ and is commonly referred to as a renewal. If the landlord wishes to grant a new tenancy they may want to consider whether it is on the same terms as the current tenancy or whether they want to vary any of the terms.

Commonly, a break clause is added to a replacement tenancy Agreement 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 expiry of the initial period.

The advantage of this option for the landlord is the tenant must wait until the expiry of the initial period to end the tenancy. The disadvantage of this option for the landlord is they must wait until the expiry of the initial period to seek possession of the property.

Action the landlord will need to take if they want to grant a new tenancy on the same terms – Let us know and we will prepare a Tenancy Agreement and arrange for it to be signed.
Action the landlord will need to take if they want to grant a new tenancy on different terms – Let us know what changes they would like to make for the replacement tenancy and we prepare a Tenancy Agreement and arrange for it to be signed.

3. Terminate the Tenancy

If the landlord wishes to terminate the tenancy at the end of the initial period, they must serve the tenant a notice telling them you want possession of the property. The notice must give the tenant not less than two full rental months’ notice and cannot be served in the first 4 months of any tenancy. This is known as a Section 21 notice and as part of our service we will serve the notice on behalf of the landlord should they require it.