What is a statutory periodic tenancy?

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When you rent out a property as being a landlord, in many instances you are going to include a fixed period of time within the tenancy agreement. This particular period of time is referred to as the term’, so the tenancy agreement often deal with either a six month or maybe a season long tenancy. When this particular tenancy ends, when the tenant remains in residence and the tenancy agreement which existed was an Assured Shorthold Tenancy (AST), then a statutory periodic tenancy is produced instantly if absolutely no additional contract is in position. As the majority of contemporary tenancies are ASTs, the construction associated with a statutory periodic tenancy is regarded as the typical result of a fixed term tenancy ending.

This brand new periodic tenancy will:

Start right away from the second the existing tenancy ends.
Be between the same individuals that were tenant and landlord at the conclusion of the AST.
Be associated with the exact same premises.
Be regular, which means it is going to run for set periods of time, normally either monthly or weekly.
Be under exactly the same problems and terms since the fixed term tenancy in almost all other values.

How’s a statutory periodic tenancy created?

A statutory periodic tenancy is produced on the expiration of any Assured Shorthold Tenancy (AST) in case the tenant remains in residence at the very same home. As stated above, this can be on exactly the same terms as the prior tenancy. This is as an outcome of Section five of the Housing Act 1988? as what this means is the brand new periodic tenancy is produced by statute, it’s known as a statutory periodic tenancy.
How can you stop a statutory periodic tenancy?

To stop a statutory periodic tenancy, a landlord should provide written notice with a minimum of 2 weeks they would like to possess the home returned. This is known as the notice to quit’, and also should have the day the tenant should leave by. Unlike ending a tenancy during an Assured Shorthold Tenancy (AST), you don’t need to supply a reason behind ending the tenancy.
What exactly are the conditions associated with a statutory periodic tenancy?

The conditions associated with a statutory periodic tenancy are the same to those of the preceding Assured Shorthold Tenancy. The exception to this is that the brand new periodic tenancy is going to run from time to time, normally either monthly or weekly.
Could you boost the rent during a statutory periodic tenancy?

It’s likely to boost rent during a statutory periodic tenancy. Nevertheless, you are able to just do so twelve weeks after the beginning of the first tenancy, and it can’t be done more frequently than every twelve months. This increased rent is usually called a Section thirteen Notice.
What rights does a tenant have under a statutory periodic tenancy?

Under a statutory periodic tenancy, a tenant has a selection of rights. These consist of the right:

In order to have their deposit protected under a deposit protection scheme.
To inhabit the home until the a day that their tenancy is terminated following an appropriate notice to stop, Or perhaps, they decide to go away as set out in the tenancy agreement.
To safe living factors within the property of yours, like the right to assume repairs.

What advantages are also there for a landlord making it possible for a tenancy to be a statutory periodic tenancy?

A landlord may gain from a tenancy transforming into a statutory periodic tenancy. Future benefits are able to include:

Greater flexibility for terminating the tenancy, as there’s no requirement to hold out for the tenancy to conclude and to locate a legitimate reason to stop it.
Simply no need for creating a brand new fixed term tenancy understanding, because the conditions move over between periods.
Absolutely no chance of being forced to spend a lettings agency a tenancy renewal fee while the tenancy transforms into the statutory periodic tenancy automatically without needing to create a brand new fixed term.
The capacity to increase rents or even adjust a contract could be much simpler, because you don’t need to hold back until the conclusion of the fixed term tenancy agreement.

What disadvantages can a landlord experience under a statutory periodic tenancy?

While at this time there are a few benefits, you will find in addition disadvantages linked to a statutory periodic tenancy. These’re that:

Your tenant is forced to provide a single month of notice that they want to vacate, likely not offering some time to discover a brand new tenant.
If a statutory tenancy agreement is permitted to work for very long, the tenancy understanding it’s dependent upon could be outdated and have criminal elements.
Finding brand new tenants is expensive, and also placing reliable and good tenants over a statutory periodic tenancy can be dangerous as you might lose their tenancy with less difficulty, and can easily see them replaced with much less reliable tenants.