To go periodic or not periodic...that is the question

[blue_eyes777]

Dear all

 

A current AST comes to an end on a property on the 17th August. When my agent enquired whether the tenants would like to renew, they told him they were splitting up. On this basis my agent advised issuing a S21 as he was concerned about affordability. The tenants are an unmarried couple with three children.

 

One of the current tenants (male) is now starting treatment for a serious condition and now the partner of the sick tenant has texted me offering me 6 months rent upfront to stay when the AST ends as she says that they are working on getting back together and don't want the stress of moving.

 

There is a guarantor already in place for this AST plus 6 months deposit. I am tempted to accept this as it will avoid a void period. Is there anything to be concerned about? I know Johnson V Old has ended concerns about registering rent upfront as a deposit. If I accept this, should a new 6 month agreement be put in place (as my agent suggested)? Or should I let it go on to a monthly rolling tenancy?

 

What about the notice period and serving a S21 when the 6 months draws to an end? The female tenant apparently told my agent 3 weeks ago when we sent the S21 that she would stay on regardless (seems to have backed down on this though) - so I am slightly worried about her volatility. It would have meant I would have had to get a possession order.

 

My agent's renewal charge is 4 %. Would you expect that a 6 month renewal means that I would pay 4 % on the 6 months rent?

 

Sorry if this post is confusing. I guess I am asking if anybody thinks it might be a bad idea to let them stay on after the threat of staying after the AST expires. Obviously they still might if the council advises them to stay and the 6 months upfront would mean this potential disaster is abated but what are the issues after the 6 months elapse?

 

Thanks in advance for any advice

[mariner51]

When did current Tenancy commence? month/year, for what fixed term?

Personally I would let current T go periodic, even if only to deprive LA his renewal fee

Perhaps ask G if they wish to remain G for T, if No then req T to provide new G

[blue_eyes777]

Hi thanks for the reply.

It was a 12 month AST and began August 2015.

 

As the agent has started viewings do you think they will get annoyed if I negotiate a periodic? Is a periodic tenancy better for me? I don't have contact details for G - should I ask T to het him to contact me, or no deal? Will G still be bound if the tenancy goes periodic?

[blue_eyes777]

Update:

Tenant now saying she won't leave until eviction as the council have advised her to stay beyond the s 21 expiring next month. BUT - she has a guarantor and I am inclined to let the tenancy go periodic to avoid the hefty eviction fees and void period/ My agent says that his TOB states that the whole original commission rate is due for a periodic which I have now disputed.

 

Shall I just go for it and get a possession order? I don't mind if they stay and would prefer the consistent rent even though they want council housing so are being unpleasant.

[blue_eyes777]

Dear fellow caggers

 

I apologise if this is a repeat post as it raltes to my other thread but the situation in the other thread is now not happening and I have another query:

 

My tenants were issued with a S21 that expires at the end of the fixed term in the middle of this month.

 

The tenant now saying she won't leave until eviction as the council have advised her to stay beyond the s 21 expiring next month. BUT - she has a guarantor and I am inclined to let the tenancy go periodic to avoid the hefty eviction fees and void period/ My agent says that his TOB states that the whole original commission rate is due for a periodic which I have now disputed. I don't mind if they stay and would prefer the consistent rent even though they want council housing so are being unpleasant. They refuse to communicate with me - all this is coming from the agent.

 

There have been no rent arrears although a few late payments and if they stop paying rent they potentially risk making themselves becoming intentionally homeless so the council may not help them in that case.

 

Any advice gratefully received.

 

Thanks!

[honeybee13]

Hello there.

 

I think it will help the advisors to have the history of this, so I've merged your threads and kept the new title.

 

HB

[mariner51]

Previous related thread http://www.consumeractiongroup.co.uk/forum/showthread.php?466335-Tenants-want-to-pay-6-months-rent-up-front-after-s21-has-been-issued

(HB beat me to it by merging threads)

 

IMO proceed with valid s21 repo and ask Judge to award costs against the T.

T will remain hopeful of obtaining Council Housing, which may be offered for occupation at short notice. When repo is granted, T may be eligible for emergency accom in B&B.

If you can't cope with costs of a void/renovation/repo, time to reassess your position as PRS LL.

[blue_eyes777]

I can cope with the costs though in London they are very heavy. But the advice I got was to go periodic (from a lawyer) but welcomed other opinions, that's all.

[blue_eyes777]

Hi all!

 

My agent wants to charge the full renewal fee of 4 % plus VAT for a fixed term tenancy that went periodic. No labour was required to do this including checking whether or not the tenants left after a section 21 was issued. They wanted me to do this!

 

They have graciously allowed me to pay on a quarterly basis.

 

The fee charged is the same as for a renewed tenancy with a new AST. Is this a fair fee and can it be challenged?

 

 

Thanks to you all.

[mariner51]

I am reluctant to comment on an unseen Contract clause, but generally no one can charge a renewal fee JUST for allowing T to become SPT at end of fixed term -as it is T's Statutory Right.

Is the LA a member of a Trade Body, eg ARLA? If so, complain to them.

LA may decide to cancel their Contract with you if not paid - Oh Joy!

[legalistic]

blue-eyes777. Is the fee in the terms and conditions ? And see section 83 onwards of the Consumer Rights Act 2015. The fees need to have been readily visible. http://www.legislation.gov.uk/ukpga/2015/15/section/83/enacted

[mariner51]

2 app related threads merged.

[blue_eyes777]

Fees

 In the event of the tenant, introduced directly or indirectly to the property, renewing the tenancy for a further period, or if the tenancy falls into a periodic tenancy due to a contract renewal not taking place, you agree to pay ******* a further fee, which will be equal to that of the initial commission agreed plus VAT, of the gross annual rental that year. ******** will complete contracts for renewal where requested, the cost of which to the landlord is included in the renewal charge.

 

page 3/9 in the terms of business.