Renewing A Tenancy Agreement Contract
This article will cover whether or not a landlord needs to renew a tenancy agreement after it’s expired (e.g. the end date in the contract has lapsed).
Despite popular belief, an assured tenancy agreement does NOT need to renewed after the original agreement has surpassed it’s end-date.
If a tenant remains in the property, the tenancy becomes what is known as a ‘periodic tenancy’ This simply means that the terms and conditions in the original tenancy still applies (unless both landlord and tenant have agreed to changes), but the contract becomes a rolling contract. The rolling contract can run from week to week or month to month, it depends on how frequently the rent is paid. Typically, rent is paid monthly, so most periodic tenancies become monthly rolling contracts.
Can I sign a new fixed-term tenancy agreement?
Absolutely.
You can get new tenancy agreements drawn up, with new terms and conditions (agreed by the tenant), and then signed. This will then takeover the original tenancy.
The main reason for landlords to get a new contract signed is for security. The renewed shorthold tenancy must have a minimum fixed term of 6 months, even if a shorter period is specified in the new tenancy. Landlords like to tie in good tenants so they don’t have to worry about finding replacements tenants.
It’s important to note that if you’re using a letting agent, they may ask for a “tenancy renewal fee” if new contracts are required to be signed. This is something that should be specified in the contract between agent and landlord. The amount can vary, some agents base it on a percentage of the annual rent achieved, while others may charge a fixed fee. The fee covers admin costs to cover the renewal.
However, if the tenancy is allowed to roll into a periodic tenancy, no renewal fee should charged, as the tenancy isn’t technically being renewed, and no additional admin work is required.