
A complete tenancy settlement tailor-made to your circumstances could be key to reaching a profitable and harmonious landlord/tenant relationship.
Nevertheless, even probably the most well-thought-out tenancy settlement might should be amended sometimes to adapt to altering circumstances. It pays for landlords to know the legal guidelines and finest practices surrounding amending and renewing tenancy agreements to make sure seamless administration and knowledgeable decision-making.
On this article, we’ll clarify the foundations and processes surrounding amending and renewing tenancy agreements.
Significance of Tenancy Agreements
A tenancy settlement isn’t only a piece of paper; it’s an vital contract between landlord and tenant that outlines everybody’s rights and obligations and ensures everyone seems to be studying off the identical web page from day one. Ought to any disputes come up in the course of the tenancy, a look on the settlement typically helps to rapidly settle points while safeguarding the pursuits of each events.
Landlords ought to fastidiously draw up their tenancy settlement, guaranteeing it’s complete and tailor-made to their necessities. This helps present readability to tenants and saves the owner time and trouble later down the road.
Is a Tenancy Settlement Legally Binding?
Sure, a tenancy settlement is a legally binding doc. As soon as each events have signed the settlement, they’re dedicated to finishing up the obligations outlined within the settlement.
There isn’t a cooling-off interval for a tenancy settlement. If a tenant modifications their thoughts earlier than shifting in, maybe because of a change of their circumstances, they’re nonetheless responsible for hire.
Amending Tenancy Agreements
After the tenancy settlement has commenced, the owner might realise that, on reflection, it’s lacking vital data, wants tweaking, or the tenant might request a change. While this isn’t perfect, and you may’t simply shift the goalposts on a whim, there may be some leeway for making modifications to the settlement. Whereas it’s doable to make modifications, the right processes have to be adopted.
Can the Landlord Make Amendments to a Tenancy Settlement?
Lively tenancy agreements can normally solely be modified if each the owner and the tenant agree. Perhaps the tenant needs to alter their hire cost date, a brand new occupant is shifting in, or the owner is eyeing a hire improve. If each events conform to the modification, a contemporary contract will get drafted and signed, otherwise you create an addendum or modification, which is then signed and stapled to the unique settlement.
Normally, if a change is being made to a time period within the present settlement, that is known as a lease modification. Nevertheless, if one thing new is getting added to the settlement, it is a lease addendum.
It’s vital to notice that landlords might solely cost tenants a charge for amending the tenancy settlement if the tenant requests the change.
When is the Greatest Time to Make Adjustments to the Tenancy Settlement?
Making modifications to a tenancy settlement in the course of a tenancy could be disruptive and has the potential to ruffle feathers and spark disputes, particularly if the tenant didn’t ask for the change.
The very best time to suggest modifications to an settlement is when it’s winding down. At this level, the owner can current their up to date phrases to the brand new tenants or their present ones in the event that they want to renew their settlement. This manner, you keep away from rocking the boat whereas nonetheless locked into an settlement.
The Ins and outs of renewing tenancy agreements
If the tenant plans to remain within the property previous their preliminary lease time period, you might marvel what occurs subsequent.
Properly, there are a few choices, and it’s as much as the owner and tenant to resolve which choice most closely fits the circumstances.
Do All Tenancy Agreements Should be Renewed?
The reply to this query isn’t any – there is no such thing as a have to renew.
There isn’t a authorized requirement to resume a fixed-term tenancy as soon as it ends. If the tenant stays on and the settlement will not be renewed, in accordance with the Housing Act 1988, the fixed-term tenancy settlement robotically turns into a periodic tenancy settlement (often known as a “rolling tenancy”). Throughout a periodic settlement, all the identical phrases of the previous settlement nonetheless apply, however the settlement runs from one interval to the subsequent – normally from month to month – till both the owner or tenant offers discover. The size of the interval is dependent upon how regularly the tenant pays hire. If the tenant pays their hire month-to-month, the contract will run on a month-by-month foundation. The identical precept applies in the event that they pay their hire weekly or bi-weekly.
Begin of tenancy guidelines

Use This Free Guidelines if Beginning a Tenancy
There are a number of regulatory and finest observe issues that you could do when beginning a brand new tenancy. Forgetting any of them can have a knock on impact on the finish of a tenancy. This guidelines helps to ensure you haven’t forgotten something.
Statutory Periodic Tenancy vs Contractual Periodic Tenancy
Considerably confusingly, there are two kinds of periodic tenancy – statutory and contractual.
If the tenancy settlement doesn’t point out what’s going to occur to the settlement as soon as it ends, i.e. there may be nothing within the settlement about shifting to a periodic tenancy, then as soon as the settlement ends, if it’s not renewed, it turns right into a statutory periodic settlement.
Nevertheless, some landlords write into the tenancy settlement phrases that after it ends, it’s going to change into a periodic settlement. On this case, it turns into a contractual periodic settlement.
In authorized phrases, a statutory periodic settlement begins a brand new tenancy, whereas a contractual periodic settlement is a continuation of the previous one.
The primary distinction you’ll discover between the 2 is that choosing a statutory periodic settlement over a contractual one creates just a little extra admin work, and there could also be much less flexibility with ending the settlement.
To Renew a Tenancy or To not Renew?
Whether or not you plan renewing the tenancy settlement together with your tenant is as much as you. There are execs and cons to each renewing the settlement and letting it change into a periodic tenancy settlement as an alternative. The proper choice for you is dependent upon your circumstances.
Renewing the tenancy settlement locks tenants in for an additional fastened interval, offering the owner with higher monetary safety. As soon as a tenant is on a rolling contract, it’s a lot simpler for them to all of a sudden up-sticks and depart at very brief discover, which may depart the owner scrambling to discover a new tenant as rapidly as doable to keep away from an costly void interval. Locking tenants in for a brand new fixed-term settlement may also help scale back the tenant turnover fee and be less expensive in the long run.
Nevertheless, shifting to a periodic tenancy offers the owner extra flexibility in the event that they’re not getting on with the tenant too nicely or are uncertain about their future plans for the property. Simply don’t neglect that this route gives the identical stage of flexibility to tenants too! For landlords that use a letting company, permitting the contract to show right into a periodic one can even assist keep away from any potential expenses for renewing the tenancy settlement.
Tips on how to Renew a Tenancy Settlement
Renewing a tenancy settlement is normally a simple course of. The owner or letting agent normally contacts the tenant a month or two earlier than the settlement expires to find out whether or not they plan to remain on within the property.
In the event that they do plan to remain on and are completely satisfied to resume their contract, a brand new contract could be drawn up and signed by each events. In case you want to amend any contract phrases, then this needs to be mentioned with the tenant, and any new phrases needs to be negotiated and agreed upon earlier than presenting the tenant with the brand new settlement to signal.
Tenancy Renewal Charges
For landlords that use the providers of a letting company, renewing a tenancy settlement typically comes at a price. The value can fluctuate from free to £250 relying on numerous components, so at all times examine together with your letting agent what their charges are to keep away from any nasty surprises!
It’s the landlord’s duty to pay any charges related to renewing the tenancy settlement. It has been unlawful for landlords to cost tenants a charge for renewing their tenancy settlement since June 2020, when the Tenant Charges Act 2019 was launched.
Ending the Tenancy on the Finish of the Mounted-term
As the top of a fixed-term tenancy nears, the owner may even see this as a possibility to reclaim their property – maybe they wish to put the property available on the market or transfer into it themselves. If that’s the plan, giving tenants correct discover is vital.
If the owner needs to finish the tenancy on the finish of the fastened time period, they need to give the tenant loads of discover, at the least two months, to permit them to search out elsewhere to reside. A well-timed and courteous heads-up may also help to foster goodwill and make sure the course of runs easily.
If the tenant doesn’t vacate the property after the two-month discover, the owner can not evict them by power. As an alternative, they have to undergo the formal eviction course of and apply to the court docket for possession.
Understanding and managing tenancy agreements is an ongoing course of for landlords that may considerably impression the standard of their relationships with tenants. By taking the time to know the ins and outs of managing tenancy agreements, landlords could make extra knowledgeable choices, scale back potential conflicts, optimise long-term effectivity, and guarantee their tenancies run easily.