What is a periodic tenancy? This tenancy can be created expressly, or by implication, such as when a lease does not mention the duration of the tenacy , but arrangements were made for payments to be made at certain intervals. Periodic tenancy is just one type of leasehold estate in real estate. There is no specific ending date, but there is a specific period of tenancy (such as week-to-week or month-to-month). The tenancy may be set on a week-to-week, month-to-month, or year-to-year basis.
Alternatively, though less common, the landlord and tenant can agree on another time period. The notice must expire at the end of a relevant period. Most people think of a tenancy as being granted for a period of time, typically six months or a year. Very few tenancies, in the private sector anyway, start out by being periodic. This generally happens when the fixed term ends.
If the tenancy is an assured shorthold tenancy (which most are) the Housing Act then provides that it will run on, on a month by month or week by week basis, depending on how the rent is paid. Lets say John Brown has a six month tenancy of Astreet, which runs from 2. See full list on landlordlawblog. If a tenancy arises because an act of Parliament says it will, this will be a ‘statutory periodic tenancy ’. For example, if an AST runs on after the end of the fixed term.
Rater than because of a statute. A periodic tenancy , however, will be ‘contractual’ if it exists because the parties have agreed that it will. One reason why many people don’t know about periodic tenancies is because letting agents always insist on doing ‘renewals’. A renewal can be a good idea, as it gives both landlord and tenants security for a further period. It is also a good opportunity for the landlord to increase the rent.
However, sometimes they are not a good idea. You do this by giving them an initial term of just one month (or a week, or four weeks) and then just allowing it to run on. A Shorthold Tenancy automatically becomes a “periodic tenancy” if new contracts aren’t signed after the fixed-terms expire in the original Tenancy Agreement and the same tenant(s) remain in the property. All the same terms and conditions apply, but the only difference is that a new periodic contract begins, otherwise known as a ‘rolling’ contract, which typically runs on a month-by-month period.
The “period” is dependent on how frequently the rent is paid. To reconfirm, you don’t have to do anything. Tenancies automatically become periodic immediately after the fixed date in the contract has expired and when the tenancy is not renewed.
Like any other type of tenancy , periodic tenancies should only be terminated through proper legal processes. Mutual consent (i.e. when both landlord and tenant agree to terminate the tenancy ) 2. Eviction by landlord 3. Notice by tenant (the notice period will depend on how often rent is pai as discussed above) 4. They allow flexibility e. Section Form – notice of possession, without having to wait for a fixed term to expire before the tenant has to vacate. There’s no need to arrange another tenancy agreement , the clauses in the expired agreement will still apply. Additionally, saving paper is awesome! A lot of snake-oil letting agents charge a tenancy renewal fee for renewing contracts.
As I already experienced in a harsh life lesson, putting good tenants on periodic tenancies is risky because they can unexpectedly vacate pretty quickly. Tenants typically only need to give one month’s notice when they’re on a periodic tenancy , which may not allow a comfortable amount of time for the landlord to find new tenants if the current tenant gives minimal notice. The issue can become extra stressful if the property requires cosmetic work in order to attract new tenants.
It be a contractual periodic tenancy in three ways: 1. By making it clear in the. I know many landlords, including myself, favour periodic tenancies because of the flexibility. I generally like things to dangle and have wiggle room 🙂 But it’s important for landlords to remember that the flexibility also applies to tenants. Finding good tenants. The rules around the amount of notice required vary from state to state, but landlords generally need to give more notice than the tenant.
The amount of notice that a tenant must give to a landlord to end the tenancy depends on the kind of periodic tenancy that is in place. For a week-to-week periodic tenancy , the tenant must give the landlord at least one week’s tenancy notice. It might be periodic from the start or roll on after the end of a fixed term contract. If you have a fixed term tenancy with an end date (e.g. months) there are different rules if you want to move out early.
Tenancy that automatically continues from one lease or rental period to the next, until terminated by the tenant or landlord via a prescribed or statutory notice. A periodic lease agreement is a tenancy that does not have a specified end date. Week to week, month to month and year to year leases are considered as periodic rentals.
Another danger of a periodic tenancy is that the original contract might eventually become obsolete due to new laws, such as those covering deposit protection. If a contract is out of date and doesn’t cover all legal requirements, it’s useless and could even lead to the tenant having a financial claim against you.