Introduction
K&G lettings Limited are often asked by tenants what happens at the end of the fixed term of their tenancy agreement. This article is designed to answer this question for current and future tenants, with the aim of providing a hassle free service for our tenants.
When renting a property a from K&G Lettings Limited, a tenant signs an Assured Shorthold tenancy agreement. This tenancy agreement lasts for a fixed term (usually 6 or 12 months) and then reverts to a monthly periodic tenancy.
Difference between a fixed and periodic tenancy
The difference between a fixed term and a periodic tenancy are significant. In a fixed term tenancy, the tenant can not end the tenancy without finding a suitable replacement or paying the outstanding rent until the end of the fixed term. In addition, the landlord can not evict the tenant without a breach of the terms of the tenancy agreement until the end of the fixed term. If the tenant breaches a term of the tenancy agreement and a judge rules in the favour of the landlord, the tenant can be evicted during the fixed term. This effectively gives the tenant security of tenure for the fixed term (traditionally 6 or 12 months), unless they breach a clause of the tenancy agreement.
In a periodic tenancy the period of the tenancy is usually a month (but can be a week), this means that the tenant has the right to occupy the property during this period. If they want to leave the property they must give one months (monthly tenancy) or 4 weeks notice (weekly tenancy) ending at the end of a period – for more information, see the
article ‘How to end your tenancy agreement.doc’. If the landlord wants to evict the tenant and the tenant has not breached a term in the tenancy agreement, they must provide the tenant with 2 months notice. With a periodic tenancy, the tenant has security of tenure for at least 2 months and can move out within one month if a monthly tenancy or 4 weeks if a weekly tenancy.
What to do if you want to start a new fixed term tenancy agreement?
At K&G Lettings Limited we offer our tenants the opportunity to begin a new fixed term tenancy agreement when their current fixed terms ends – assuming the tenant has looked after the property and paid the rent on time. This affords the tenant the added security they know they can not be evicted from the property within the new fixed term.
Starting a new tenancy means that the old tenancy must be ended in a prescribed way and the new fixed term tenancy agreement signed. K&G Lettings Limited will deal with all of the paper work when it comes to ending and starting the new tenancy. However, the new tenancy agreement and documents required to end the previous tenancy will need to be signed by the tenant, so a visit to the tenants home will be necessary.
What to do if you want to move to a periodic tenancy at the end of the fixed term?
Nothing, the tenancy agreement automatically becomes a monthly periodic tenancy. All you have to do is to continue to pay your rent on time and look after the property in the same way you have previously.
Conclusions
When renting from K&G Lettings Limited, the tenant has the option to move onto a monthly periodic tenancy at the end of their fixed term. This gives them security of tenure for 2 months, assuming they do not breach a term of the tenancy agreement. If a tenant would like to start a new fixed term at the end of the existing tenancy agreement,
which gives them security of tenure for 6 or 12 months, they must contact K&G Lettings Limited to arrange for their existing tenancy agreement to be terminated and a new agreement signed.
Summary
- All Assured Shorthold Tenancy Agreements used by K&G Lettings Limited automatically become a monthly periodic tenancy at the end of their fixed term.
- When renting from K&G Lettings Limited, the tenant has the option to be in a new fixed term tenancy agreement when their current agreement expires.
- A periodic tenancy is more flexible than a fixed term tenancy allowing the tenant to move out quickly should they be required to.
- A fixed term tenancy is less flexible but gives the tenant security of tenure for 6 or 12 months.
