renewing tenant contracts

[jedifool]

Hello Lemon Fools,
first time I'm posting here....

I'm a novice landload using an agent to rent out my house. It's been a year since the tenants moved in... please could someone suggest how to renew the contract and what to look out for? Are there any problems using the same tenants again? They are very good and pay rent on time, so was wondering how to keep them ?

Thanks
Jedi fool

[JonE]

I'm a novice landload using an agent to rent out my house. It's been a year since the tenants moved in... please could someone suggest how to renew the contract and what to look out for?

Assuming that the AST agreement was for a 12-month period then your agents will be all over this. It provides them with an opportunity to gouge extra fees from the tenant (while they still can) and, perhaps, even from you (until they have to change their charging practices to get more from you).[1]

Without an agent a landlord could allow the AST to become a "Statutory Periodic Tenancy" in which case the tenancy would simply continue with the same terms but with notice being able to be served on either side in accordance with the law. Some tenants prefer the perceived reassurance of having a minimum fixed term so might prefer a new tenancy agreement. Agents like 'renewal fees' for printing and signing a copy of a standard document so will have served notice (perhaps even at the beginning of the tenancy) that the tenancy will, indeed, end at the agreement's end-date and will be ready to get a new AST agreement in place - but I'm surprised that they haven't yet talked with you about the level of rent.

Are there any problems using the same tenants again? They are very good and pay rent on time, so was wondering how to keep them ?

What's the local market like for your type of property? Demand greater than supply or the reverse? Could they find an equal (or better) value home easier than you could very quickly (you really don't want a void) find equally good tenants?

'Direct' landlords may find that increasing the rent by less than would be required to bring it to the current market level (and making sure tenants are aware of that) helps retain tenants and improve the relationship. If an agent is involved you will hear various arguments against this as it doesn't maximise the value of their cut - and the presence of an agent doesn't usually help build any relationship between landlord and tenant (quite the opposite, all too often) so that factor is near-irrelevant.

Cheers!
[1] The Autumn Statement mentioned 'protecting tenants from fees and charges' (even though reporting was very muddled about whether it was landlords or agents making these charges and benefiting from them) but nobody really knows what that means and I'm not aware that anything has been discussed or put out for consultation yet. Mind you, I no longer keep a close eye on such matters.

[UncleEbenezer]

The best thing to do is Nothing. The tenancy just carries on until one side or the other gives notice according to well-established procedures (that the agent should deal with when it happens). Anything else you do is unnecessary work for the agent (££), and might also inconvenience the tenant. Why would you want to do that if you're happy with the current situation?

[JonE]

[1] The Autumn Statement mentioned 'protecting tenants from fees and charges' (even though reporting was very muddled about whether it was landlords or agents making these charges and benefiting from them) but nobody really knows what that means and I'm not aware that anything has been discussed or put out for consultation yet. Mind you, I no longer keep a close eye on such matters.

I now see that it was put out for consultation and that the 8-week consultation period closed just before the general election. The consultation paper may be viewed from here:
https://www.gov.uk/government/consultat ... by-tenants
and here's the press release from the date of the start of the consultation period:
https://www.gov.uk/government/news/gove ... agent-fees

Note that it applies only to England and not to Scotland, Wales or NI. I wonder if housing will again be the arena in which the West Lothian question is raised - but perhaps the headline purpose of any bill brought forward means that no political party would want to risk being portrayed as opposing that stated purpose.

Cheers!