UK Landlord Forum / Life

Hi,

First time poster, hope someone can give me some advice.

I used an agency to find a tenant and set up a 6 month AST.  The tenant wanted to pay 6 months in advance and the AST has the following detail:

Term:                   For the term of 6 months commencing on 30th June 2015
Rent:                   £895.00 per calendar month
Payment           Payable six monthly in advance
Deposit                   A Security Deposit of £1095.00 is payable on signing this Agreement

I have now taken on the management of the property myself so met the tenant and viewed the property last week.  I am happy to allow the tenancy to continue and the tenant has asked to pay monthly (she can claim housing benefit) on a Periodic Tenancy, although she is not opposed to another fixed term AST.

My question is, can I use the original AST and allow this to turn into a Periodic AST with the "Payment" stated as "Payable six months in advance"? Or, do I need to write a new AST for a new fixed term changing the Payment to "In advance by equal payments Monthly on the 30th of each month"?

Many thanks in advance.

I wouldn't offer a new AST I would let it go periodic.  I wouldn't stipulate payment on the 30th either, you might find yourself short of rent around March time.

Be wary of advice from a blog (especially mine)
Always do your own research

LisetteR


You could let it convert into a periodic tenancy now but the payment term would still be 6 months in advance.
The Housing Act 1988 specifies what a periodic tenancy is, the most pertinent is section 5 (3) (d):
"(d)under which the periods of the tenancy are the same as those for which rent was last payable under the fixed term tenancy; and"
Where reference to periods is the payment frequency

There are two options:
Option1:
You could then ignore the fact the tenant is behind on the rent until the 6th month, so long as you don't serve in writing a notice to change the payment term, which would be questionable as you would have verbally told her anyway
Legally you would then be able to use a Section 8 to evict on late payment cause in the first four months but in any case a Section 21 could be used.  Would the tenant realise all this? Probably not.

Option 2:
Under the Housing Act 1988 section (6) (2)
(2)Not later than the first anniversary of the day on which the former tenancy came to an end, the landlord may serve on the tenant, or the tenant may serve on the landlord, a notice in the prescribed form proposing terms of the statutory periodic tenancy different from the implied terms and, if the landlord or the tenant considers it appropriate, proposing an adjustment of the amount of the rent to take account of the proposed terms.

Vary the terms of the Statutory Periodic Tenancy but you must use the prescribed form found here...
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/471840/Form_1_-_Eng.docx

Up to you how you want to play it.

Best of luck.

PS in case you didn't understand Hippo there is no 30th in Februaury you need to use the prescribed form.

Hippo?

Whoops...I see you three as the same...

LisetteR, Riptide and Hippogriff? How odd.

Quote from: theangrylandlord on December 03, 2015, 04:04:57 PM
Whoops...I see you three as the same...

Now you have me intrigued

.

Thanks for advice, the form is exactly what I was looking as I am happy with the rest of the wording of original AST.

Could you give me any further advice on how to word the payment dates then please?  The tenant moved in on the 30th June, should I word it as the last day of each calendar month??

Thanks again :-)

Interesting never really thought about that question...

I will do some research but in the meantime the words "the last day of each calendar month" will suffice.

If I were really anal (and I sadly am) I would tell you to read the rest of the agreement and see if "Month" is a defined term and if so then use "the last day of a Month" but either phrase will work.

If I find out anything about payment terms on 29,30 or 31st I will post again.

Best of luck