If the tenant wants to stay at the end of a fixed term tenancy there are two options to extend the arrangement.
The first is to set up another fixed term tenancy with new dates and then it is just a simple task of getting all parties to sign it. A typical extension period is for 6 or 12 months.
The second option is to do nothing and continue the tenancy on a periodic basis. If the rent is paid monthly, then the agreement continues month to month and the tenant just needs to give a month’s notice to end the agreement.
- Signing up for another fixed term gives both parties security whereas leaving it on a periodic basis gives both parties more flexibility. A landlord may want to consider the times when the tenancy comes to an end. For example, if there is strong student demand in the area then it would be sensible to always end tenancies when students are actively looking to rent.
- The option chosen also has implications for the landlord’s power to both increase the rent and end the tenancy. The decision on which option to take shouldn’t be left to the last minute and a reminder should be brought up a few months in advance.
