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Question Title: Tenancy Renewal
| Question: 355 |
| We rent a property to a tenant in Bristol. The original six month tenancy was due to end at the end of December. Accordingly, we offered the tenancy a renewal of the tenancy, which he accepted. He subsequently signed up for a new tenancy extension of six months, starting January 1st of this year. However, a week after the start of the new tenancy period, he told us that he no longer wanted to stay and did not want to be bound by the new tenancy. Since the landlord is abroad, the new tenancy agreement has not been signed by the landlord. Where does this leave us - is the tenant bound by the new tenancy or not ?
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| Answer: |
| The acceptance by the tenant of the landlord's offer to extend the tenancy constitutes a legally binding contract. Why - because of the legal principle of offer and acceptance which binds the tenant, in contract, to a new tenancy. The fact that the contract has not been signed by the landlord does not matter. There is no legal requirement that the agreement for the new tenancy has to be in writing - given the tenant is already in occupation of the property, a verbal agreement is sufficient in this case. The fact that the tenant has also signed the tenancy documentation is simply further evidence of this agreement. Interestingly, recent proposals put forward by the Law Commission would mean that, in future, tenancies may require a written agreement to be valid and enforceable. Having received the tenant's request for an early surrender of the new tenancy, the landlord or agent should take reasonable steps to re-let the property at the earliest opportunity (under the principle of mitigating the landlord's loss). In the meantime, until a new tenant is found, or until the end of the new fixed term (whichever is the earliest), the tenant is bound by the new tenancy.
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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 |
Chapter 5 & 9 |
letting-handbook-and-factsheets.html
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For more information, discuss on the Forum
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