Government have created chaos in the PRS

I think landlords ought to think in future about having tenants give the maximum possible notice possible.

In the current coronavirus environment where people are not supposed to be doing viewings, landlords would like it if, when their current tenants gave notice, the notice period was as long as possible, (as they won’t be re-letting any time soon and be facing a void).

This brings me to the issue of what period of notice a tenant should give, once a fixed term in an assured shorthold tenancy has ended (and even when there was no fixed term in the first place).

Shelter, that bane of landlords, has actually got the most succinct summary on their site, where it says that if the original tenancy states that at end of a fixed term the tenancy would roll on to become a “contractual periodic tenancy”, then the notice period the tenants must give would be whatever was stated in the original tenancy agreement.

However, if the tenancy agreement was silent on the matter, it would be effectively become a “periodic tenancy” and the notice required from the tenant would be whatever the “period” was, usually monthly, of course – so a month of notice would be all that a tenant needs to give.

Here is a link to their site where it comments on this matter: https://england.shelter.org.uk/housing_advice/private_renting/ending_a_periodic_tenancy

So, if at the end of the fixed term of an assured shorthold tenancy, unless stated otherwise in the tenancy agreement, a tenancy would become a statutory periodic tenancy, (and a notice period clause would not survive), and so it would be a common law tenants’ notice which is one period of the tenancy, or one month, in most cases.

So, what do I do with my tenancies?

Well, for years, we have always stated in our assured shorthold tenancies, that after the fixed term ends, unless ended by us or the tenant, the tenancy simply continues as a contractual periodic tenancy, with 42 days’ notice required to end it from the tenant. (And by the way, if it is the landlord wishing to end a tenancy, after the fixed term has ended, they would normally need to give 2 months’ notice).

Never had a problem with this notice period from a tenant.
But we find that we can usually find another tenant who can start a new tenancy much earlier than in 42 days time, and so, if it suits the current tenant who is leaving, we can end the current tenancy earlier than in 42 days, and make a pro rata rent payment back to the leaving tenant.

Our 42 days stated in the tenancy agreement, is good because sometimes stuff could happen where one would like it to be longer than a month. We might be ill and unable to perform viewings, for example.

The extra days above a normal month, are a nice little extra comfort to have. In these coronavirus times, when viewings are banned, anything more than a month would be a bonus, I think (unless you and any potential viewers who are not terrified of the virus are prepared to break the quarantine, of course). And if you do, keep that quiet from neighbours, if you suspect the neighbours are narks!

It would seem that one could even ask for two months (maybe longer still than that), though this would seem a little unfair to me – and may even run into being an Unfair Contract Term.

As far as I know, the question of really long notice periods in contractual periodic tenancies after a fixed term has ended, has never been tested in court. The situation in Scotland may be different.

Something to mull for your future tenancy agreements, for the next time a virus or other event closes down viewings.

David Lawrenson
http://www.LettingFocus.com
Private Rented Sector Advice and Consulting

Reply to the comment left by David Lawrenson at 13/04/2020 - 12:39
Interesting, I thought I was the only landlord to demand exactly the same notice period from a tenant as landlords have to give to the tenant. My tenants continue as a contractual periodic and require two months notice. Since few tenants abide by the terms of the contract the tenant remais responsible for council tax until the property is re-let. I rarely pay council tax during voids.

Reply to the comment left by David Lawrenson at 13/04/2020 - 12:39
A months notice is all that is legally required from a tenant and any term stating otherwise would successfully be challenged as an unfair term.
If you haven't had it challenged ( YET ) good luck..

Well, as I said, there are different views on that.
I think if asking for longer than 1 month could be deemed an unfair term (or could be tested in court as such) then I think, with respect, that the likes of Shelter would have said as much on their site.
They did not.

I spoke to my accountant today, he mentioned that small company directors who have also been hung out to dry have got a petition up and running to highlight their situation, it might be worth ourselves doing the same? Anyone savvy enough to get the ball rolling?

Here is the link for the petition

Hello there,

I just signed the petition "UK Government: PROPER Support for Owners/Directors of their own Ltd Companies from UK Government COVID-19" and wanted to see if you could help by adding your name.

Our goal is to reach 500,000 signatures and we need more support. You can read more and sign the petition here:

http://chng.it/gLMLnFV8x4

Thanks!

Reply to the comment left by Paul Simmons at 02/04/2020 - 09:29
Hay Paul, we have a couple of UC tenants more by accident then design as "we dont accept recipients of benefits due to mortgage restrictions" anyway, my point, complete a UC47 immediately and send it to ucfull.service@dwp.gov.uk make sure and tick for managed payment. They seem to be processing them fairly quickly, so apply oooooooooohhhhhhh by the way they bounced back my handwritten UC47 as the petald&%ks now need it typed........presumably stop spread of something! Good luck.