A periodic tenancy will continue until either the landlord or the tenant brings it to an end – usually by serving a Notice Requiring Possession.
A fixed term assured tenancy (i.e. non-shorthold) will continue after its expiry date, and the landlord can only bring it to an end on certain grounds.
Most tenancies in the private rented sector start life as fixed term assured shorthold tenancies. When the fixed term of an assured shorthold tenancy ends the Landlord has the following options if he wants the tenancy to continue:
• to agree a replacement fixed term shorthold tenancy with the tenant;
• to agree to a replacement assured shorthold tenancy on a periodic basis called a contractual periodic tenancy;
• do nothing and allow the assured shorthold tenancy to run on with the same terms, under a statutory periodic tenancy.
Agreeing a Replacement Fixed Term AST
This is not something that the landlord has to do but a replacement fixed term tenancy is advantageous for landlords who want to know that the tenant’s obligations are going to continue for at least the duration of the replacement tenancy.
Check whether the tenancy deposit protection scheme being used requires re-registration of the deposit if the tenancy is renewed because the scheme requirements vary.
Agreeing a Contractual Periodic AST
This is also not compulsory but it can be a good option for landlords who need to be flexible about when they can have their property back. Landlord and tenant can agree that the tenancy agreement will terminate by either of them giving notice. Take advice about the tenancy agreement and the legal requirements of a any notice, if there are any doubts about this. Again, check whether the chosen tenancy deposit protection scheme requires re-registration of the deposit.
Statutory Periodic Tenancy
If the landlord does nothing and the tenant stays on in the property, the tenancy will automatically run on from one rent period to the next on the same terms as the preceding fixed term assured shorthold tenancy. This is called a statutory periodic tenancy. The tenancy will continue to run on this basis until a new fixed term, or periodic tenancy, is agreed or the tenant leaves or the court awards the landlord possession. The terms of the existing tenancy agreement remain in force, a notice to gain possession of the premises can be served at any time. The period of notice is linked to the period for which rent was last payable under the tenancy. Take advice if there are doubts about which notice to serve.
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