How to Properly Renew a Tenancy Agreement

Therefore, if your leasing agreement with your tenant is about to expire and you're both content to keep things as they are (congrats, by the way), you might be asking how to correctly and painlessly renew/extend your tenancy agreement.

Therefore, if your leasing agreement with your tenant is about to expire and you're both content to keep things as they are (congrats, by the way), you might be asking how to correctly and painlessly renew/extend your tenancy agreement.

The greatest and most popular choices for renewing tenancy agreements are covered in this blog post.

OPTIONS FOR EXTENDING THE TENANCY

A current tenancy can often be renewed in one of two ways. The good thing is that both procedures are rather simple, so even if you're not the sharpest tool in the shed, you should be able to complete them.

1) Confirm the renewal of tenancy agreement

It really is as easy as it seems. Simply obtain a copy of a lease, have it signed, and date it as of the termination date of the prior lease.

Many landlords believe this to be the only method of re-extending a tenancy. Although it's not, it's probably the most typical.

2) Keep quiet and let it happen.

Seriously though, do nothing and enjoy yourself.

A tenancy turns into a periodic tenancy (sometimes known as a "rolling tenancy") when it isn't ended and no new agreements are made while the tenant is still residing in the property. It is entirely legitimate.

THE LESS POPULAR CHOICES

1) Memorandum

You can also utilize a Memorandum, a one-page document that can include stipulations like rent hikes and break clauses and extends the contract's terms and conditions (the new end date should be provided).

2) Get into a contractual periodic tenancy

If you haven't already, again, I can only suggest you in the direction of my guide on contractual periodic tenancies for more information on this alternative.

CHANGES IN TERMS AND CONDITION/ RISE IN RENT

• Rewrite the lease agreement and include the updated terms and conditions in it (this will create a new fixed term tenancy).
• If the sole modification is an increase in rent, a rent increase notice can be given, and the new tenancy may then transition into a periodic lease.
• Produce a distinct counterpart document containing the modified terms. Both the landlord and the tenant must date and sign the contract. Both periodic and fixed-term leases are covered by this.

RENTAL RENEWAL FEE

If you found your tenant through a high-street renting agent and you wish to extend the tenancy, it's likely that the agency is rubbing nasty little hands together because they're about to smack you with a cost known as a tenancy renewal fee. In "theory," the fee pays for the administrative expenses associated with renewing the lease and keeping your tenant.

Agent fees normally range from £100 to £200 for the renewal of a tenancy. Even some agents base their calculation of the charge on a portion of the rental income (the fees some landlords have been subjected to by that formula is actually terrifying).

The fees must be expressly specified in order to be enforced, therefore it's important to review your landlord/agent contract to see if they apply at all.

Do you actually intend to extend the lease?

It goes without saying that you should always give new tenancy agreements significant thought. It sounds so simple and silly to say, yet you'd be amazed at how many landlords extend leases with undesirable renters purely out of convenience. The last thing you want to do is sign a lease with someone who gives you the willies for more than six months.