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The landlord’s options at the end of a fixed-term tenancy agreement

The change from a fixed-term shorthold tenancy to a roll-over contract, or a periodic Tenancy Agreement is a procedure that could be confusing for both landlords and tenants.

Tenants in particular are frequently confused by various forms of Tenancy.

The most confusion happens at the conclusion of the term fixed.

Usually, shorthold tenancy contracts are typically for up to twelve months. The assumption is that at the expiration of the lease the tenant must either sign an agreement for a new one or removes themselves from the property.

The reality is a bit different. In reality, at the conclusion of a fixed-term agreement the tenancy ends immediately and instantly transformed into a rolling agreement. It is usually one-month in duration however, it will be matched to the duration of rent payments.

For instance, if rent is paid bimonthly, the contract rolling will run at least two months. If it is paid every week the contract would run for a week, and the cycle continues.

The landlord’s options at conclusion of a fixed-term rental agreement

Many landlords will be content with the rolling contract to enter into force.

Others will however prefer to see the tenant sign another fixed-term lease.

There are several positive reasons:

A fixed-term lease agreement provides greater security for both the tenant and landlord

From the landlord’s point the landlord’s point of agreement implies that the tenant has to pay rent for the entire duration of the agreement.

The money will come in on a regular basis which is fantastic for cash flow . There is no chance of the house being vacant and not earning income.

The best tenants can easily be the weight in gold

If you are able to find a reliable tenant, a fixed agreement guarantees that they’ll stay permanently in the house. Nobody wants to lose an excellent tenant, but in the case of a rolling contract they might be more likely to leave the property to gain the security of a longer-term contract elsewhere.

It can be a challenge to find new landlords. a challenge.

If you sign a fixed tenancy agreement form, you can be pretty certain that the tenant will be in place at the expiration date of the agreement.

This avoids the hassle and expense of finding new tenants.

Finding tenants is an exhausting and long-winded process. During the time that the search is going on the property, it is vacant and not generating any revenue. This can make the entire process very costly.

And, what is the other perspective?

We’ve discussed the advantages of fixed Tenancy Agreements in comparison to a rolling contract which brings us to the cons?

The greatest benefit is the flexibility that a periodic or rolling contract offers the landlord.

It’s much more simple to let tenants go as the landlord doesn’t have to delay the expiration of the fixed time period before delivering notice. This is especially helpful when you have a troublesome tenant or quickly regain control of your property.

But, as we mentioned earlier, the brief notice period can be detrimental as tenants you don’t wish to lose may move out of the blue.