Renewing a Tenancy Agreement vs a Rolling Contract
The change and transition from a fixed short-hold tenancy towards a rolling contract can often tie landlords in a knot of confusion, usually occurring at the end of the fixed-term contract. But it’s something which affects many people, as well as being something to maintain an awareness of if you’re currently looking for somewhere to live via an online property agent. In most cases, tenancies usually run for around six months to a year and its assumed (and often the case) that the tenants will either sign a new agreement or move on.
However, at the end of a fixed-term contract, the tenancy automatically becomes a rolling contract – of usually around a month, or to match the periods during which the rent is paid. A lot of landlords find this open rolling contract beneficial. Others, however, tend to prefer another fixed-term. And this is why:
1) There’s more security for both parties with a fixed-term tenancy. Tenants will be paying for the full term of the tenancy, meaning money will come regularly and the property won’t sit empty.
2) If your tenants are good, then it’s likely that with another fixed-term contract they will stay for longer, as opposed to leave for somewhere a little more secure.
3) Going through the hassle of finding new tenants for your property can be a massive headache. You’ll never really know what you’re getting until it’s (potentially) too late. It can be a pretty long, drawn out process and the last thing you want is an empty property that’s losing you money.
On the other hand, a rolling contract offers an immense amount of flexibility to a landlord. If you’re not getting on with your tenants or you need the property vacated for any work you are planning, you won’t have to wait until their tenancy is up to find new ones. However, in the long run, this also means your tenants can pack up and head off at very short notice, which could be very frustrating if they’re good ones!
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February 12, 2021
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