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Month: February 2021

Rent guarantor – what you need to know

by Asif AliPosted on

Landlord, tenant or guarantor  – we’ve got the answers to your most important questions.

Renting is a big financial commitment involving risk for both landlord and tenant. If you’re a landlord who’s not confident that a prospective tenant can pay the rent – or you’re a student or recent graduate finding it difficult to prove you can afford the rent, or you can’t pay a whopping 12 months’ rent upfront – it’s worth considering getting a rent guarantor.

What is a rent guarantor?

A rent guarantor is a person, a company or an institution that agrees to be a tenant’s financial back-up. If the tenant doesn’t or can’t pay the monthly rent, the guarantor is liable to pay for them. They are legally bound to cover all the tenant’s debts – which could be thousands of pounds – so that the landlord is not out of pocket. This is why many tenants turn to their parents, other family member or a very close friend to be their guarantor.

Who can be a rent guarantor?

A financially stable individual, a specialist company, or an academic institution.

A guarantor needs to have more money than the tenant, generally be a UK resident and UK home owner (it’s much harder to chase debt abroad), and be willing to go through rigorous checks, including a credit check and any other check the landlord requests to prove they can afford to cover the tenant’s costs on top of their own living expenses.

Thankfully, these days there are several alternative options if friends or family can’t or won’t help out. We talk about this in more detail below.

Is a rent guarantor liable for unpaid rent?

Yes. Which is why the role is a serious responsibility and should not be taken on lightly, nor without being crystal clear about exactly what’s being signed up to. There are many stories of guarantors who find themselves surprised and stressed that they’re being asked to pay their relative’s rent.

As with any legal contract, always check what the guarantor agreement says. A guarantee agreement may also state that the guarantor is responsible for other conditions under the tenancy, such as:

  • unpaid bills, including council tax
  • damage caused to the property
  • if a shared property, other joint tenants’ unpaid rent
  • legal costs faced by the landlord because of the tenant.

Be absolutely sure of your obligations, as they’re difficult to get out of.

On a positive note, a guarantor is free to negotiate the terms of the guarantee agreement with the landlord before signing anything.

Landlords

When can a landlord contact a guarantor?

When your tenant owes you money. At this point you can send a rent demand letter to the guarantor. Send copies of all correspondence about rent arrears or other breaches of the tenancy agreement to the guarantor. The guarantor could become liable for the debt if the tenant doesn’t pay.

Tenants

I need a rent guarantor but can’t find one. What do I do?

Good news; you have options, especially if you’re a student. Your university or a specialist company can potentially act as your guarantor. Both work with letting agents and landlords to ensure the agreement is professional and legally binding.

For a fee, rent guarantor services will act as your UK guarantor. How much you pay depends on the amount of rent you plan to pay, and whether you’re working.

UK Guarantor https://ukguarantor.com/ can secure you a rent guarantor the same day you apply. 

YourGuarantor https://www.yourguarantor.com/ acts as a UK guarantor for students attending UK universities for at least 3.5% of the rent, with no minimum fee.

Housing Hand https://www.housinghand.co.uk/ helps UK-based students, recent graduates and working professionals get their first choice of accommodation .

All let you apply online for free.

Many universities, including the London School of Economics, offer their own rent guarantor service open to both UK-native and international students. It lets your university act as your guarantor to help you become a private renter and pay your monthly rent in full and on time.

Note that even these schemes require the meeting of certain criteria. For example, you don’t owe them money, and you have a satisfactory academic record.

Guarantors

How much does a rent guarantor need to earn?

It depends on what the individual landlord asks of them, but generally it’s three times the amount of the rent. Often, proof of income isn’t enough, however. Strict landlords will likely need a guarantor to be a UK homeowner and have ample savings, too.

What happens if a rent guarantor refuses to pay?

If the rent guarantor refuses or fails to cover any unpaid costs, the landlord can take legal action against the guarantor.

How can I stop being a rent guarantor?

It’s not easy but it is possible, typically when there’s a change in the tenancy agreement. For example, a change to the rental fee or a renewal of the tenancy would count as a variation unless:

  • the tenancy agreement says that the guarantee applies to any future variations or renewals, or
  • the guarantor agrees to the variation.

Can rent guarantors give notice?

As a general rule, no. Not within the fixed term of the agreement. However, as always, it depends on the wording of the guarantee. You might be responsible for covering rent arrears for however long the tenancy lasts, and for any increases in the rent. But if the tenancy turns into a periodic tenancy, the guarantor can then give one month’s notice.

What checks are done on a rent guarantor?

A guarantor goes through the same detailed referencing process as a tenant, including credit checks, a CCJ check and employer checks, plus extra checks, such ownership of property with HM Land Registry.

What happens if a guarantor can’t pay the rent?

Unless the guarantee provisions say otherwise, the guarantor carries on being liable even if s/he falls ill or loses their job.

If they’re declared bankrupt, then depending on the circumstances, the landlord may be a creditor in the bankruptcy for anything owed. And if the guarantor was to die, the landlord may be able to claim against their estate. Again, it depends on individual circumstances and what it says in the guarantee agreement.

Landlords: are you wasting money on ‘void periods’?

by Asif AliPosted on

Tenant changeovers can be tricky – from a landlord’s point of view, you probably want to keep the void period between tenancies as short as possible. After all, for every week your property is empty, you’re missing out on rent payments that could be going towards your family’s income, or your retirement, or paying off your own mortgage. 

Over time, even small unoccupied or ‘void’ periods can add up to a significant loss of income. But when it comes to the end of a tenancy, managing two sets of renters, incoming and outgoing, can be a nightmare. So how do you time it perfectly, keep your property occupied, and avoid the void?

Be a good landlord 

Prevention is better than cure. So if you can keep your tenants for a long time, it pays to do so! Being flexible and communicating well with your renters will keep them happy and less likely to move out. Over time, this approach not only yields the financial benefits of fewer tenant changeovers – it also just means you have an easier life and less landlord stress. Win-win. 

Talk to your outgoing tenants

If your tenants are definitely leaving, ask them how they found living in the property, and if there’s any particular reason why they’re moving on. If you had a good relationship, you could ask them if they would recommend any future tenants – perhaps they have friends or colleagues who would be equally easy to deal with.

Budget for a void period

Savvy landlords will already be doing this, but there’s no time like the present to start saving. Be financially cautious and expect to have a void period of one month per year. This way if it happens, you won’t panic and end up lowering your rent unnecessarily or settling for renters who don’t fit your specifications, just to fill the gap.

Make your property an easy sell

If you’re planning to advertise your property,  kitchens and bathrooms in particular are more likely to be a deciding factor for renters, so make sure they’re looking their best when you’re nearing the end of a tenancy. And make sure the photos taken by your agent really sell the property – ideally your adverts should be so good they make you want to move back into your property yourself!

Reduce rent and renovate

One of the most common reasons landlords have a void period is to allow them to carry out repairs or renovations. If you want to give the place a lick of paint or refit the entire kitchen, it might be necessary to have your property totally empty – but if there are smaller jobs you want to do, you might be able to carry them out while your outgoing tenants are still in the property. 

This is where having a good relationship with your renters really pays off. With a lot of good will and perhaps a reduction in one month’s rent, you may be able to ‘avoid the void’ by doing some repairs while the property is still occupied, meaning it’s ready for new tenants the day your old ones move out.

Check your insurance

Finally, it’s a good idea to make sure your insurance covers periods when your property is unoccupied. If a boiler breaks in an empty house with nobody to discover it, you could be in for a much bigger repair job than you expected. So make sure you know what your insurers will (and won’t) pay for in advance, to avoid any nasty surprises. 

Making your tenant changeovers quick and easy is a win-win for everyone involved. While you can’t always ‘avoid the void’ completely, over the long term it can really pay off to think carefully and have a plan that minimises your losses while your property is empty.

5 time-saving technologies UK landlords can’t afford to miss

by Asif AliPosted on

Unless you’re a dedicated property magnate, being a landlord shouldn’t take up your whole day. But even the most relaxed ‘part-time’ landlords have periods when it feels like the whole process is taking up far too much of your time. 

Lucky for us, new technologies can speed up a lot of the traditional lettings nightmares – or get rid of them completely. So with the help of our property experts, we’ve put together a list of the latest tools, ideas and apps that will help make letting your property quicker, smoother, and less of a headache. 

‘Project manage’ your property

Being a landlord often feels like juggling. Keeping all the balls in the air is hard enough by itself, but making sure your renters, the agent, and the handyman down the road are all kept up to speed can be a nightmare too. 

Trello is a free, simple list-making app that can help you ‘project manage’ your property. It’s used by tech teams and startups worldwide, but it’s also the perfect way to keep track of your property, your tenants, or even multiple properties. 

You can create to-do lists, get reminders when tasks are due, add attachments like contracts or photos, and even tag other people on them so they know they need to do something. There are plenty of options and add-ons, but even the basic app is just the most intuitive project board out there. Big recommend from us.

Try Trello out for yourself here.

Online banking that works for landlords

It’s a good idea to keep track of all payments coming in and out of your property. But if your traditional bank won’t make that easy for you, there are plenty of new banking options out there who will help you track everything for free. 

Mobile banks like Monzo, Tide and Starling Bank offer transparency and money managing options that are simply decades ahead of the bigger, more sluggish banks. They can help you keep track of your payments, produce monthly/yearly reports, and save money in separate pots, all on your phone. If you have multiple properties, this could be the best way to keep on top of them all in one place. 

Some of these apps will even allow you to request payments from other people – so they could also be a handy solution for regular payments between you and your tenants, agents and contractors. 

Check out Monzo, Tide, and Starling Bank.

Super simple inventory management

Ever got to the end of a lease and had to waste time quibbling with your tenants over ‘wear and tear’? Sortly will help you sort that – it’s an inventory management app that helps you easily keep track of the ‘things’ in your life. 

The app is photo-based, which means you can create a clear visual inventory of all you own – or the condition of all the furniture in your property before your tenants move in. It’s designed to help you document everything in your house or office for insurance purposes, so it’s organised, thorough, and really intuitive to use.

Try Sortly for yourself here.

Find the right person for the job

This one’s a must if you’re planning any repairs or renovations. RatedPeople.com helps you find local contractors for repairs and odd jobs – for free! From landscapers to plumbers, you can see detailed reviews from people who’ve booked them before, and chat to them through the site before booking anything – so you know you’re not about to lose money to a cowboy tradesman.

Find your next handyman, builder or decorator at Rated People.

Calculate your next property move

If you’re in the business of property, you might be looking at buying another property to let it out. This super-quick rental yield calculator will give you an estimate of the potential return from that property – simple!

If you’re a landlord, you’re part of a fast-moving market. But with a few tech tips and tricks, you can stay ahead of the game and make sure you get the most value from your property. Let us know how you get on – or if you’ve got any apps or technologies you think we missed!

Landlords: here’s why switching letting agents is worth the hassle

by Asif AliPosted on

For some reason, switching letting agents is one of those things that you just don’t do. It falls into the same category as changing your bank, your internet provider, or your phone contract: you know you might save a bit of money, but the hassle just doesn’t seem worth it. 

Well guess what? Things are changing. Traditional estate agents might take advantage of your fear of the unknown, trapping you into staying with a service that’s just ‘fine’ – but it’s actually far easier to switch agents than you might think. And there’s a lot for savvy landlords to gain by doing so.

1. You could pay much less

Ultimately, pricing is probably your first priority when deciding whether to switch letting agents. And you’re right to be sceptical of the prices charged by traditional agents. Especially since the introduction of legislation like the Tenant Fee Ban (which eliminates a lot of the fees agents are used to getting from tenants), many letting agents are simply finding ways to transfer that ‘lost income’ onto their landlords.

This is where the new breed of agents come in. Our pricing systems are totally different – allowing you to build a service that works for you. Our flat fees cover everything you’ll need as a landlord and our plans start at just £59/month). It could be worth switching just to know all your costs are covered in one place, and especially if it’s going to be cheaper.

2. New ideas and technology

Unlike traditional letting agents, newer agents aren’t set in their ways. We don’t just do things ‘because it’s always been done this way’. Simply put, we’re more likely to be keen, flexible, and eager to impress you – and we’ve got the tools to show the dinosaurs how it’s done. 

Take this quote from Howsy founder Calum: 

‘We don’t indulge in stylish offices and fancy cars. We keep our operational costs low, and use the best technology to automate routine tasks, so our focus is on you and your tenants.’ 

Up and coming tech solutions can save online agents so much time and cost, we’re able to spend more time on building better relationships with our landlords, and reduce the upfront cost for our customers too. So a newer agent’s service isn’t just likely to be cheaper – it could be better, quicker, and more personalised. 

3. Better communication 

Maybe your agent was great at the start, but their service has tailed off now they’ve got your business? Once the honeymoon period is over, it can feel like you’ve been pushed to the bottom of the to-do list. 

Especially compared to more traditional estate agents, online agents can offer quicker and communication on the platforms that suit you best – text, chat, phone, whatsapp, email, online dashboards. Some agents even offer 24/7 availability instead of working strict office hours (we certainly do 😎). 

When you run into issues with late rent payments, maintenance issues or finding a new tenant at short notice, the last thing you want is your agent dragging their feet – so switching agents can be worth it just to know you’ll actually get someone useful on the end of the phone, whenever you need them.

Getting itchy feet? We don’t blame you! Luckily, switching agents can be much easier than you think. Here’s what you need to do:

  • Give notice. 
    • Check your contract for how long this needs to be. It can make sense to wait until the end of a tenancy agreement, but you don’t have to.
  • Pay any exit fees.
    • It depends on your contract, but if the agent hasn’t delivered on what they agreed at the start, you may be able to negotiate these fees down, or in the case of a serious breach of contract, waive them completely. 
  • Keep your tenants informed.
    • Get your tenants’ contact details if you don’t have them, and get in touch to reassure them that it’s just the agent you’re changing, not them (unless they’re part of the problem – then you might need to think about evictions). 
  • Arrange the transfer of the deposit.
    • Make sure it’s securely transferred from one scheme to another, as there are very strict requirements for handling your renter’s deposit – it shouldn’t go anywhere near your personal account! This doesn’t need to be a hassle, though: your new agent should be able to take care of it for you.
  • Collect keys and paperwork from your old agent.
  • Set up your new tenancy agreement with the new agent.
  • Benefit from the level of service you should have been getting all along – at a cheaper price 😉

If that list looks like a lot of hassle, that’s okay – because ALL of this can be handled by your new agent. They can liaise with your old agent on everything from drawing up new agreements to speaking to your tenants, to collecting the keys and sorting out the deposit.

If the honeymoon phase is over and your agent is giving you sub-par service, you don’t have to put up with it. Get in touch with us to find out how much time, money and hassle you could save by switching agents.

5 time-wasting mistakes expert landlords never make

by Asif AliPosted on

Most landlords nowadays aren’t property magnates: they’re landlords ‘on the side’, and have another job they need to keep on top of. Between work, fun and family, there’s not much time going spare – so the last thing you want to waste your free time on is an inbox full of landlord problems! 

Especially if you’re paying for the services of a lettings agent, your property should be fully optimised, from top to bottom, and delivering the most bang for your buck. So we’ve researched the 5 top areas where ‘part-time’ landlords are wasting time or money – just to check you’re making the most of your assets. 

5 mistakes landlords are making

1. Settling on your choice of tenants

They might seem great on paper, but the credit check comes back looking a bit dodgy, or they can’t provide a guarantor. A few months down the line you might find they’re not taking good care of the property, or even subletting. Trust us – it pays to spend a little more time and effort finding the right people in the first place and do a comprehensive background check – this could save you weeks of legal nightmares and missed rent payments later on in the tenancy.

2. Lengthy communications with tenants

How many hours have you wasted just waiting for a response or some paperwork from your tenants? If you can’t get them to answer the phone, or they won’t reply to emails quickly, there could be a simple solution that saves you heaps of time. 

Instead of getting frustrated at the radio silence, try staying in touch on different channels that work for your tenants. If they use Whatsapp, set up a group chat with them (this also allows you to see when they’ve received your message!). Try sending a text if they don’t pick up when you call – plenty of people (especially younger generations) just don’t like speaking on the phone. If they prefer email, try to subtly set deadlines each time you email them – then if they don’t reply, you’re more able to move forwards in whatever process you’re managing.

Simply put, communicating clearly and in channels that work for everyone can save you a ton of hassle, and you could end up with a much better relationship with your tenants overall – it’s a win-win.

3. Shoddy or last-minute repairs

It’s a common phrase for a reason: when you buy cheap, you really do end up buying twice, and deal with twice as much admin. This is called an ‘opportunity cost’. Being a great landlord means truly investing in your property – and investments are a long-term deal. So make sure you’re budgeting enough to deal with repairs properly when they inevitably come up.

Don’t just paint over the mould once a year, don’t buy the cheapest Argos furniture and expect it to last for decades, and always check the reviews on your handyman! You’ll spend less money and time in the long run, and your tenants will be more likely to take good care of a property that’s clearly been invested in.

4. Becoming a legal expert

As a landlord you need to be up to date on changes to legislation that affect you and your tenants. Take the new tenant fees ban – you could end up being prosecuted or fined if you charge tenants for things that would have been totally legitimate just a few months ago!

If property law really gets you excited, you could always keep on top of this yourself, by subscribing to a couple of newsletters like Landlord Today (and actually reading them!).

But for the rest of us, it’s crucial to know that your agent is 100% on top of the latest developments in property law, and keeping you informed of all updates. This saves you a lot of time spent googling, reading and worrying – but the question is, can you trust your agent to keep you in the loop?

5. Waiting for late rent

First of all, if your tenants are late paying rent, there’s the potential time-suck of emailing them and chasing payments. Then, if it continues to be a problem, there’s the potential to claim missed payments back on rent guarantee insurance. Yippee – not only are you out of pocket, you’re also saddled with a ton of paperwork and legal hassle. 

There is a solution for missed rent payments (other than finding the right tenants in the first place – see number 1). Especially if you’re letting in an area with a high tenant turnover, or dealing with less financially stable renters like students, you could benefit from a guaranteed rent policy that offers upfront missed rent payments. 

Ideally letting your property should be a more ‘passive’ source of income for you. So if it feels like your property or renters are taking up too much of your time, it’s worth looking into ways of optimising your process. 

Hopefully the above will give you some ideas for optimising your property yourself. But if you consider the time and effort you could sink into self-managing your property, you might not be breaking even. After all, isn’t this all meant to give you more time to spend on yourself?

It could be even more efficient to let an expert take care of it for you, and you don’t have to pay a premium for the service either. In fact it could be cheaper than your current set-up! With newer online agents like Howsy, the above services and more can be covered for as little as £35/month.

Rent Guarantee Insurance : the facts

by Asif AliPosted on

Sometimes even the best tenants fail to pay their rent. Landlords – protect your income and mortgage by getting specialist insurance cover. Here’s what you need to know.

Rent guarantee insurance is much like any other form of insurance. For a relatively small monthly or annual fee, it will pay out money in the event of a loss – in this case, rental income loss when a tenant can’t or won’t pay.

Landlords can make a claim to their insurance provider when the tenant has failed to pay a fixed minimum amount of rent – usually one month’s worth. However, the majority of policies stop you from making a claim within 90 days of purchase.

Naturally, the exact level of cover and any additional extras depend on the policy you buy. Most rent guarantee insurance policies have terms and limits, so it’s important to read the small print.

Do I need rent guarantee insurance?

In a 2018 Government survey of English private landlords, the most common reason for evicting, asking a tenant to leave or not renewing a tenancy was rent arrears (58%).

Redundancy or illness can hit even the most well-intentioned of us at any time. If your tenants suddenly struggled to pay their rent, would you be able to cover your outgoings? And would you be able to afford potential legal fees necessary for recovering what you’re owed?

If the answer’s ‘no’, getting rental guarantee insurance is likely a good idea. For even the most thorough of landlords it can prove a financial lifeline when problems happen.

It can also help resolve other potentially very stressful related issues, such as:

  • If your tenant deliberately damages your property. 
  • A dispute arises with your tenants over renovations or repair works. 
  • Your tenant won’t leave your property, even after an eviction notice.

How much does rent guarantee insurance cost?

Typically, a few conditions need to be met before you can buy rent guarantee insurance. For example, your tenants must have passed tenant referencing checks. If you need to make a claim it’s your responsibility to provide completed tenant referencing documents.

How much is the excess?

The insurance excess is the fixed amount you have to pay if you make a claim on your policy. An excess of one month’s rent is typical, but check with each provider when researching quotes as you may be able to lower it or get a no-excess policy.

Does it include legal protection?

Typically, landlord rent guarantee insurance is sold as a joint policy with legal assistance insurance, which means the landlord’s legal costs of recovering the rent and/or evicting a non-paying tenant are covered too. Some policies include additional 24 hour-legal support.

Is rent guarantee insurance tax-deductible?

Yes. The full cost of a policy is tax-deductible against your rental income.

To get the best deal possible, Howsy recommends comparing quotes from a range of insurance providers or calling us directly. We offer something even better.

One of Howsy’s services for landlords is called Howsy Protect, and gives you Rent Guaranteed. If a renter is late paying their rent, you’ll be paid in full, regardless. If an eviction is necessary, we’ll cover any missed rent, as well as the legal and eviction costs. If this sounds interesting, why not register and find out more?

Periodic Tenancy

by Asif AliPosted on

Whenever a residential property is rented out, there’s typically a written contract between landlord and tenant that sets out the period of time for which the tenancy will last – normally six months or a year. But what happens when this period of time ends? Is agreeing a new fixed term always the best way forward? Let’s look at the options.

What is a periodic tenancy?

Most private tenancies start with a fixed-term tenancy, so called because it stipulates an agreed fixed term of time. During this time both parties are legally bound – the tenant to pay rent for the full term, and the landlord to allow exclusive, safe possession of the property.

Once the fixed term of a tenancy has expired – and unless a new fixed term is agreed to – all tenancies automatically, by law, become periodic tenancies. Unlike a standard assured short hold tenancy, a periodic tenancy rolls on week by week or month by month, for example – with no end date. There’s no fixed term, in other words.  The periodic tenancy simply continues ‘running’ until one party, landlord or tenant, gives notice.

If your tenant wants to stay in your property at the end of their contract and you are happy for them to stay, you have two options.

You can prepare a new assured shorthold tenancy contract for both parties to sign. Or you can simply allow the original tenancy to become ‘periodic’.

If – without giving notice – a tenant stays even one minute past midnight on the last day of the fixed term of your contract, the agreement between you automatically becomes a (statutory) periodic tenancy, and the tenant will have to give proper notice, unless you agree to them leaving.

There’s no legal obligation to give tenants a new fixed-term contract; some tenancies run on happily for years on a periodic basis.

Statutory periodic tenancy

Most periodic tenancies are by default statutory periodic tenancies because they were created by statute law.

The majority of private renters are contracted by assured shorthold tenancies, which were established and are regulated by the Housing Act 1988. Section 5 of the act states that if the tenant remains in the property after the end of the fixed term, then a new ‘periodic’ tenancy is automatically created.

It goes on to say that the periodic tenancy:

  • Starts immediately after the fixed term ends
  • Is between the same people who were the landlord and tenant at the time the fixed term ended
  • Relates to the same rental property

Be ‘periodic’, meaning it will run from period to period – normally monthly or weekly.

Under a periodic tenancy, all the terms and conditions of the original contract continue to apply, except that your tenant can end the contract at any point by giving you a minimum of one month’s notice.

Contractual periodic tenancies

You have a contractual periodic tenancy if your last agreement was either a:

  • rolling contract with no end date, or
  • fixed-term tenancy with a clause that says it would become a periodic contract when the fixed term ended.

One of the plus points of contractual periodic tenancies is that the landlord can specify what the period of the periodic tenancy will be. It allows for and creates some certainty for you.

How long can a periodic tenancy last?

In most cases, the period will be monthly or weekly, depending on what the payment terms are in the original tenancy agreement. 

However, if the last payment of rent was different – for example, tenant paid three months in advance in one payment – then the period of the tenancy will reflect this last payment, in this case, three months.

Is a periodic tenancy a good thing?

It depends on what you need. It’s certainly not a bad thing.

If you or the tenant are uncertain of your plans – you may be thinking of renovating or selling your property, for example – it may be better to let the tenancy run on as a periodic because it gives you more flexibility.

It also suits landlords who are concerned about the behaviour of a tenant. A periodic tenancy allows tenants to stay on a month by month basis only if you consider them to be behaving well, month to month.

What are the dangers of a periodic tenancy?

It’s good to be aware of the risks associated with periodic tenancies. Here they are:

  • The tenant could leave at any time with only a month’s notice
  • The original contract might eventually become out of date because of new laws. A contract that doesn’t cover all legal requirements is effectively useless and could even lead to the tenant making a financial claim against you

Under a statutory periodic tenancy the landlord, not the tenant, is liable for paying council tax on the property if the tenant leaves during their notice period.

You can avoid this by creating a ‘contractual periodic tenancy’, either by stating in the original contract that the tenancy will become a ‘contractual periodic tenancy’ at the end of the original period, or by issuing a new contractual periodic agreement.

Can a landlord increase the rent on a periodic tenancy?

Yes, you can. A periodic tenancy offers the option of upping the rental fee at any point during any 12-month period. Of course, you need to give the tenant fair notice first.

Can a periodic tenancy start straightaway?

Yes, it does automatically by law.

What is the notice period for a periodic tenancy?

How much notice a tenant needs to give you on a periodic tenancy depends on what type it is. Do you have a statutory periodic tenancy? Then the tenant must give at least:

  • one month’s notice for a monthly tenancy
  • four weeks’ notice for a weekly tenancy.

Whereas with a contractual periodic tenancy the landlord has more control and flexibility. The tenant must adhere to the notice term decided by you and written in your tenancy agreement e.g. two months. In other words, the tenant’s notice period is stipulated by you.

How much notice does a landlord need to give on a periodic tenancy?

Once a tenancy has become periodic, a landlord must give the tenant at least two months’ written notice through a section 21 notice to leave the property, and terminate the tenancy.