As the end of your tenancy agreement grows closer, you may be thinking about how you could renew the agreement with your tenant.
The most common way to renew a tenancy agreement is to simply get a copy of an agreement, maybe make a few adjustments if you need to and then get it signed by the tenant.
However, you could take no action at all. If a new contract isn’t signed while your tenant remains in the property, the tenancy becomes a periodic tenancy. The same terms and conditions apply but the new tenancy agreement is periodic which depends on when the rent is paid. If the rent is paid per calendar month then the contract will run on a monthly basis. Basically, there is no long-term contract between you and your tenant and your tenant can give one months notice and you are allowed to give 2 months notice.
If your tenant was found by a high street letting agent and you want to renew the tenancy, you will have to pay a tenancy renewal fee. This could be anywhere between £100 and £200. If you do not wish to pay the fee then you can let the tenancy roll into a periodic tenancy.
When you renew the tenancy agreement, you may wish to change the terms and conditions of your agreement. First of all, you could create a new tenancy agreement with the new terms and conditions to create a fixed contract. Another option is to send the tenant a rent increase notice if that is the only change you want to make. Finally, you could create a counterpart document with the new terms and conditions on, ensuring the document is dated and signed by both of you. All terms and conditions are subject to Unfair Terms in Consumer Contracts Regulations so it’s wise to check the changes with a solicitor before you enforce them.