You have the power to ensure that they have affordable housing for all who need it if your contract is a secure shorthold rent (AST) and you want to stay in the property according to the fixed term, a new written agreement (or “renewal”) is not essential. The lease becomes a “periodic lease” and continues under the same conditions as before. This is very common and periodic leases can, in some cases, last for many years. However, there are reasons and benefits for extending the lease for a new fixed period. By renewing the lease, you also save time and possible costs when creating a new lease. You may also think that it is best to rest well if everything goes well. If the tenant pays his rent and takes care of the property, do you really have to take care of the extension of the lease? A joint tenancy agreement does not end if the common tenants remain beyond the end of the term of term, unless there is a new agreement. You could be responsible for the rent, even if you leave. If you extend a rental agreement, you must ensure that it complies with the prohibition of rental fees. All royalties agreed before June 1, 2019 are valid until May 31, 2020. But this only applies to existential contracts. Any new tenancy agreement, which also includes renewals, must comply with the laws prohibiting rents. For more information, click here.
A periodic rental agreement is the legal name of a rolling rental contract with no specific end date. As of June 1, 2019, there is a new cap on deposits. You do not have to pay back the difference if a lease is transferred to a periodic lease. However, if you sign a new tenancy agreement with your tenant, you must ensure that the down payment you charge is under the new rules. To discover the maximum deposit you can calculate, you can use our free computer. You`ll find it here. You should try to write to your tenants at least two months before the end of their initial fixed-term contract, so they don`t even have time to wonder if they can live elsewhere! Tell them that you want to renew your lease and ask them to inform you at least one month before the expiry of their contract if they wish to renew it. When it comes to negotiating, it is best to do some research first.
Use a fair market rental calculator and check similar properties near you to see if or not you should adjust your rental price. If the rent is too high, you can lose a good tenant to a place that is more affordable. Do you have good tenants who rent by the hour? You can encourage them to sign a longer lease at a reduced rate, or offer to renew a lease from month to month. Ultimately, you have to weigh the risks and costs of the rent rate and decide if you are willing to make concessions to keep a good tenant longer. When a lease expires, a tenant may choose to move, renew a lease or continue to pay rent as a monthly tenant.