Going onto a rolling contract - any issues?

[Rentalissue]

Dh and I have been renting for three years, on one year contracts that run August-August. The flat and contract is managed by an estate agent.

However, we would like to buy our own house at some point in the next year, but right now can't say when that will be - it might be November, it might be next March, it might be next June, who knows!

I've looked into this as we don't want to be tied to a 12 month contract and think that going onto a rolling contract might be the way forward from this August.

Has anyone ever encountered any resistance from the estate agent in going onto a rolling contract? Do we actually have to state our intention and get a contract signed or is it automatic? The EA is a bit of a pain (aren't they all!) so I just want to be prepared for any problems with it.

Oh - and if you go onto a rolling contract does the rent stay the same or can they increase it?

From a landlords perspective I don't personally like contracts which become periodic because notice can be given at anytime of the year which doesn't work for our situation but that won't be the case for everyone. The one thing I would say is to be honest about your circumstances. If you have been a good tenant there's no reason why a landlord would want to find a new tenant in August particularly this year just because you aren't in a position to commit to a full year. Take the lead and speak to the EA (i'm not a huge fan either). We had a tenant spring news on us that they were moving out just before Christmas once and trying to get out of the last 3 months of their contract. I would have much preferred to know they were looking to buy and kept in regular contact. Working together at what can be a very stressful time is going to be so much easier for you.

Yes, they can still increase the rent.

Landlords tend to be much happier with ongoing rolling contracts compared to estate agents. Last time we mentioned a rolling contract our agent said no, our landlady would never agree to it - except that we had already asked our landlady directly and she'd already said yes . So be aware that your agent might give you a story about how it isn't possible, when actually it is.

There is actually a thing about an implied contract, where if you don't renew, you can technically still be considered a tenant in a legal sense anyway, sometimes I think. But they will still probably make you sign something. Don't forget the law changed last year so they're no longer allowed to charge you fees to renew.

I've just had another thought - do landlords still need to give two months' notice before the end of a contract that they don't intend to renew the contract? As last year we were contacted in May by the EA to ask if we wanted to renew, but this year we haven't heard a thing. Worried now that LL will want us out in August!

They still need to give two months notice, yes. Rolling contracts are useful, you don’t have to renew every 6 months/a year. I’ve used them on both my rentals since the original AST ran out. My tenants asked for a 2 month break Point which struck me as pointless as they only have to give a month’s notice anyway.

If you dont sign a new agreement and the landlord hasn't served notice the contract will automatically become a periodic tenancy so no need to actually do anything

No the landlord hasn’t served notice and we haven’t heard a word from the estate agent this year. So I am hoping it does automatically become a rolling contract, and they’re not expecting us out in August as we haven’t officially renewed anything yet!

I’m guessing that as EAs can no longer charge to renew a contract they won’t bother and it will automatically turn into a rolling contract.
One of the main reasons they did renewals was to earn a bit more money from everyone involved!
They still have to give you the same notice to leave(2mths)

evil bastard English landlord here. Advice for England.

I prefer rolling tenancies after the initial fixed term, not because I will wake up one day and think 'I know, let's evict them' but due to getting the tenant triple threat. (Deal/steal/wreck). Unlikely but why should I pay fees for a fixed term? I'm not going to raise the rent as this isn't London. If the tenants want to move on, that's their decision.

there is a difference between contractual periodic and stautory periodic. Read your tenancy to see what it says about what happens when the fixed term ends. if it says nothing, it will go statutory periodic. The only person who can stop that happening is the tenant, by moving out before the end of the fixed term. Do that and the tenancy ends at the end of the fixed term. Otherwise you stay on an SPT.

Landlords and agents can't end tenancies, all they can do is issue notice and then go through the lengthy legal process if you don't leave.
With the increased backlog this could take a year. You are moving on at some point anyway.

Agent won't offer you an SPT as no money in it for them. No fees for tenants now but landlord will still pay. Doesn't matter, you have no contractual relationship with the agent so just demand what you want.

On an SPT rent can be increased, notice is 1 month from you and two months from the landlord. you could ask for a six month fix as realistically house buying takes that long, or just go on to the SPT.

read your how to rent guide.