Do you want to renew your tenant’s Tenancy Agreement?
Renewing an Assured Shorthold Tenancy
There is absolutely no obligation on a landlord to renew an Assured Shorthold Tenancy agreement or AST agreement when the fixed term ends. But if you have a good tenant who wants to continue renting the property from you beyond the end of the fixed term then renewing the AST can be a good option. This is achieved by entering a new AST agreement with the tenant for a new fixed term of up to 3 years.
A renewed AST can be entered into at any time. If it is entered into before the expiry of the previous AST agreement then the old fixed term automatically comes to an end and the new one begins.
As a landlord cannot increase rent during the term of an AST a renewal is a good opportunity to raise the rent. In addition, renewing an AST gives both the landlord and tenant security for the fixed term agreed.
On an AST renewal any security deposit will roll over into the new tenancy. The legal obligations relating to protecting the deposit will be treated as complied with in relation to the new tenancy as long as the landlord complied with all of his obligations when he received the deposit in relation to the original tenancy
If the Assured Shorthold Tenancy term comes to an end without a new AST agreement having been entered into then a ‘periodic’ or ‘rolling’ tenancy may automatically arise. This would be the case where the tenant continues to live in the property and the landlord continues to receive rent.
The terms of the periodic tenancy would be the same as the terms and conditions that were set out in the original tenancy agreement unless agreed otherwise as between the landlord and tenant
The Everyman Legal team acted promptly and with us in mind. We were treated as an important client even though the services for the transaction were fairly routine. They always went the extra mile to keep the process moving efficiently.