A Guide to Periodic Tenancies
There are several types of tenancies in the world of renting, which gives landlords and tenants a few options.
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However, you might not be completely sure about which tenancy is best for you or the details involved with each one. Take a periodic tenancy, for example.
Periodic tenancies have many benefits for both parties, however of course, they aren’t without drawbacks. Continue reading for more information on periodic tenancies!
What is a periodic tenancy?
A periodic tenancy is a tenancy that runs for a certain amount of time. They tend to run from month to month, but they can sometimes run from week to week. Differing from fixed term tenancies, periodic tenancies work as a rolling contract. They can be terminated by the landlord or the tenant giving notice.
How does a periodic tenancy actually work?
As previously mentioned, a periodic tenancy works on a rolling basis, generally from month to month. The tenancy does not end until one party gives notice. During a periodic tenancy, rent is paid on the last day of the period. So, for example, if you are in a monthly periodic tenancy, a tenant would pay rent every month.
A shorthold tenancy transitions into a periodic tenancy after the fixed term agreement expires; if no new contract is created.
How can a landlord or tenant end a periodic tenancy?
If you or your tenant wants to end a periodic tenancy, there are a few ways in which this can be done:
- You both mutually agree to end the tenancy
- You decide to evict your tenant
- The tenant gives you notice
- You give the tenant notice
If a tenant gives you notice that they want to leave, they must ensure that they give you the correct amount of time – as stated on the tenancy agreement. It is also their responsibility to make sure that the tenancy ends on the correct day. For example, if you started the tenancy on 1st June, and it is a monthly periodic tenancy, they must ensure to end it on the 1st of whichever month.
If you, the landlord, gives notice this is called ‘notice to quit’. It must be given on the final day of the rental period and it must include any legal requirements.
What are the benefits of a periodic tenancy for landlords?
There are many benefits of a periodic tenancy for landlords. Firstly, having more flexibility is a big plus point. If you need to quickly regain possession of your property you don’t have to wait until the end of a fixed period. This makes the whole process much quicker. It is also more flexible for tenants, and therefore, having a periodic tenancy can help you attract tenants.
If you decide to raise the rent, this can also be done much faster. This is because with a periodic tenancy the rent is paid month by month, so any revisions can be sorted quicker.
What are the disadvantages of a periodic tenancy for landlords?
Unfortunately, as with everything, there are some downsides to periodic tenancies. If you are using a periodic tenancy, you will not necessarily attract tenants who are looking for a long-term lease.
So, if you’re wanting stability, a periodic tenancy may not be the best option for you. Additionally, if a tenant decides to move out, you are not given very much notice, which can leave you without a tenant.
If you’re looking for a flexible way to rent out your property, a periodic tenancy may be a great option for you. Make sure you read properly into the ins and outs of this type of tenancy before committing to anything. It is also important that a tenant is fully aware of what a periodic tenancy would mean for them too.