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Question Title: Renewals
| Question: 275 |
| After the initial six months of an Assured Shorthold Tenancy, is there a requirement to renew the Tenancy. By default the Tenancy will become a Periodic Statutory Tenancy, under the same terms and conditions. If you do force a renewal, can the Tenant be held to a second fixed term without changing the Terms and Conditions of the Tenancy agreement. If you do force a renewal, is it ethical to make both the tenant and the landlord pay a fee for the same ?
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| Answer: |
| There is no requirement by either party to renew a fixed term assured shorthold tenancy. If the initial tenancy is for a fixed term, when the term ends the landlord and the tenant may agree to another fixed term, or to a periodic tenancy. If they do not, then a periodic tenancy arises automatically. This type of tenancy is called a Statutory periodic tenancy. For the new fixed term, the landlord or tenant are free to renew the tenancy in the same manner or agree on new terms. If no new terms are agreed, then the arising periodic tenancy will by law have the same general terms as those contained within the original agreement. It is generally considered better practice to renew the agreement rather then allow a periodic tenancy to occur (see article on Renewals in this issue). The practice of charging both landlord and tenant a fee to carry out the same work is generally frowned upon. It is not really in keeping with the duties of an agent in accounting for all fees received and at least one of the professional associations rules against this in its published code of practice.
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References:
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Pages:
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Hyperlinks:
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Letting Update Journal |
Jan 1997 page 25 |
letting-update-journal.html
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Letting Handbook |
Chapters 5 & 9 |
letting-handbook-and-factsheets.html
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For more information, discuss on the Forum
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