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End of 6 month contract

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Author Topic: End of 6 month contract  (Read 86 times)
Newbie
Posts: 2

I like property

« on: October 17, 2021, 04:46:56 PM »

Hi
My family have been told by the estate agent that the landlord wants us to sign a new 6 or 12 month contract.
We would prefer not to sign a new contract and just keep paying the agents  monthly rent.
I was told by the estate agent the landlord wants security?
1) Is this normal?
2) what happens if I say no.
3)The country is in a state and this is what worries us.

I understand if we say no the landlord has to issue a 21 notice but the estate agent told us 1 months notice from landlord, I question this.
We have had new taps installed and look after the property very well, if the landlord puts up the price we will say sorry it's a no, no, the landlord took a mortgage out on the property 6 months ago.
Been renting 10 years plus never been asked to sign a new contract

Kind Regards
Neil
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Posts: 1382

I like property

« Reply #1 on: October 17, 2021, 10:35:03 PM »

The landlord has to give you 2 months notice.I am not sure why the state of the country  has any bearing on your situation? I am not clear if you have been 10 years with this landlord,or just reached the end of your first 6 months.Have they suggested a rent increase is likely? If you want to stay and the landlord insists on a new contract with no rent increase,it can't hurt you to agree as you won't be charged for the contract.Moving is expensive and disruptive. I prefer to keep tenants on periodic tenancies,but some landlords feel happier with that piece of paper. 
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« Reply #2 on: October 18, 2021, 09:30:35 AM »

The country is in a state and this is what worries us. ... We have had new taps installed...

That's the best segue from macro concerns to micro concerns that I've ever seen. Bravo!

Is it normal to have a tenancy renewed? Sure. It's also just as normal to allow it go periodic. Both a perfectly valid. And it is just as likely that another Tenant is having an opposite conversation with a Landlord right now, where the Tenant wants a new fixed term (for security)... in your case it's just the other way around.

However, the Agent / Landlord can certainly give you notice that the tenancy will not be renewed at the end of the fixed term (that might be the month they're referring to, I don't know)... but that actually doesn't mean you have to leave... and if you decide to stay then a new Statutory Periodic Tenancy automatically arises on day + 1. At that point the timeframe for a Section 21 is "at least 2 months notice"... and as they probably won't have served it until then... it'll mean more likely it'll be at least 3 months... and then, if you want to stay longer, you can effectively just ignore that and force the Landlord down the eviction path - which will be "at least many months".

Of course, this is not how normal people operate, is it? And you'll certainly have destroyed any working relationship you have with either the Agent or Landlord... and you can "goodbye" to any positive kind of reference, I suppose... but I don't think this is what you're asking.

You're asking if it's mandatory for a new agreement to arise - the answer is "no". While the Landlord may want the security of a fixed term... you can always make your plans clear as well... there is no ability for you to be charged for a new agreement... but (note well)... the Agent might be persuading the Landlord down this path, because the Agent can certainly charge the Landlord. It's all about understanding people's motivations. When yours align with the Landlord (let's keep that rent rolling-in) all is fine. When an Agent is involved... that's three sets of motivations that need to align. The Agent might see a way they can get the rent rolling-in (therefore commission) and possibly a nice fee, from the Landlord, for pressing "PRINT" in Microsoft Word.

What happens if you say "no"? The most likely is that you get to stay... unless the Agent whispers in the Landlord's ear that you are trouble and they're better off without having you as Tenants. Much better to be open, honest, forthright and firm... tell the Agent how you feel and that you'd prefer the tenancy move to SPT. You have no intention of moving, but you still don't want a new fixed term. You cannot be obliged to sign a new fixed term - but the trick here is getting what you want without destroying the working relationship.

I don't know why you would say "no, no" if the Landlord wants to put up the rent... this is to be expected in private rental sector... the Landlord's costs have very likely increased in the last year (mine have) so why would you refuse to accept some of that burden? Other customer out there do? Don't cut your nose off to spite your face... as already said, moving is expensive... and don't forget your taps!
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