If you’ve ever rented a property, you’ve probably heard the term “periodic tenancy” thrown around. But what is periodic tenancy exactly? It’s a type of rental agreement where the tenancy keeps going, usually on a month-to-month or week-to-week basis, until either you or the landlord decides to end it. This setup is common, offering both tenants and landlords a good deal of flexibility.
Let’s break it all down, so you know exactly what a periodic tenancy means and how it might affect you as a tenant.
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What is periodic tenancy?
A periodic tenancy is a rental agreement that doesn’t have an end date. It just continues, usually on a monthly or weekly basis, until either the tenant or the landlord gives notice to end it. This is different from a fixed-term tenancy, where you have a set rental period, like six or twelve months. The beauty of a periodic tenancy is its flexibility – it rolls over automatically after each payment period (whether weekly or monthly), and you can end it with relatively short notice.
Types of periodic tenancy
There are two main types of periodic tenancies:
- Statutory periodic tenancy: This one happens automatically when a fixed-term tenancy ends, and the tenant and landlord don’t create a new agreement. For example, if you had a 12-month contract and didn’t sign a new one, your tenancy might turn into a statutory periodic tenancy. The terms of the original fixed-term agreement stay in place, but the contract keeps rolling over.
- Contractual periodic tenancy: This type is agreed on from the beginning. Instead of starting with a fixed-term tenancy, you and your landlord may agree to a contractual periodic tenancy right from the start. This means your tenancy will continue to be periodic without ever having a fixed end date, as outlined in your agreement.
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How is a periodic tenancy created?
A periodic tenancy can start in one of two ways:
- At the end of a fixed-term tenancy: If you had a fixed-term contract, such as 6 months or a year, and the landlord doesn’t offer a new contract, your tenancy could automatically become a statutory periodic tenancy.
- From the outset: Sometimes, landlords and tenants agree to a contractual periodic tenancy right from the beginning. This is often the case for tenants who prefer the flexibility of a month-to-month or week-to-week rental agreement.
Notice period and ending a periodic tenancy
One of the benefits of a periodic tenancy is that it’s easy to end, though there are a few things to know about notice periods.
- If you’re paying rent monthly, you typically need to give one month’s notice if you want to move out.
- If you’re paying rent weekly, you need to give one week’s notice.
On the landlord’s side, they must also provide notice to end the tenancy. For statutory periodic tenancies, landlords usually need to give two months’ notice (under a Section 21 notice) to end the tenancy.
Both tenants and landlords are required to give written notice, and the tenancy ends once the notice period is up.
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Rent increases during a periodic tenancy
It’s common for landlords to increase the rent during a periodic tenancy. However, they need to follow specific rules:
- Statutory periodic tenancies: Rent increases are possible, but the landlord must give proper notice. You’ll usually get one month’s notice (for monthly tenancies) or one week’s notice (for weekly tenancies).
- Contractual periodic tenancies: If your agreement includes a rent increase clause, then the landlord can raise the rent as specified in your contract.
It’s important to note that if you don’t agree with a rent increase, you have the right to challenge it. If you feel the increase is unfair, talk to your landlord or seek advice from your local housing authority.
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Council tax and other responsibilities
As a tenant on a periodic tenancy, your responsibilities are mostly the same as those on a fixed-term contract. You’ll still be responsible for paying the rent, utilities (unless included in the rent), and council tax. The landlord usually takes care of property repairs, but you’ll need to ensure the property is kept clean and undamaged.
Pros and cons for tenants vs landlords
For tenants, the flexibility of a periodic tenancy can be a big advantage. You don’t have to commit to a long-term lease, and you can usually give notice and move out with minimal hassle. However, the downside is that you might face rent increases, and your landlord could ask you to leave with relatively short notice (although there are laws that protect tenants from unfair eviction).
For landlords, periodic tenancy gives them the flexibility to adjust rent and manage tenants more easily, without being tied to a long-term lease. However, some landlords prefer fixed-term tenancies for the stability they offer, especially if they are seeking long-term tenants.
Legal framework and compliance
Periodic tenancies are subject to laws that protect both tenants and landlords. Tenants are protected from unfair rent increases, sudden evictions, and landlords must follow the upcoming Renters’ Rights Bill guidelines for providing notice periods and handling disputes.
Practical examples and FAQs
Q: Can my landlord increase the rent during a periodic tenancy?
A: Yes, rent can be increased, but the landlord must follow the correct process. You’ll be given notice, and you can challenge the increase if it seems unreasonable.
Q: How do I end a periodic tenancy?
A: You can end your periodic tenancy by giving the required notice, usually one month if you pay rent monthly or one week if you pay weekly.
Q: Can I switch to a fixed-term tenancy?
A: Yes, it’s possible to switch from a periodic tenancy to a fixed-term contract. This would require an agreement with your landlord to set a new fixed-term period.
Upcoming reforms
The Renters’ Rights Bill is set to bring significant changes to the rental market in the UK. For tenants with a statutory periodic tenancy, these reforms could mean more protection against sudden rent increases and easier processes for ending tenancies. It’s important to stay updated on these changes as they could affect your rights as a tenant.
Making the right choice
Choosing the right type of tenancy depends on your personal needs, lifestyle, and long-term goals. Periodic tenancy offers flexibility for tenants who prefer not to commit to a long-term lease and for landlords looking for a straightforward rental arrangement. However, it’s important to weigh this against other options, especially if you’re seeking stability or specific terms in your rental agreement.
Understanding the different tenancy types, your rights, and the obligations of both parties is essential for making an informed decision. If you’re uncertain about which option is best for you or need help navigating the rental market, we’re here to guide you through the process and ensure you make the choice that’s right for you.
Consult with your local Martin & Co branch for insight tailored to your circumstances.
