Periodic Tenancy (PT)
- This describes a tenancy which continues on a month by month basis following the end of a set tenancy term, without the requirement to renew the tenancy.
- This is in contrast to a Fixed Term tenancy, the duration of which normally lasts at least 6 months.
- There are both advantages and disadvantages with this tenancy depending on the objectives of both the landlord and the tenant.
- E.g. a landlord and say his 'professional' tenants might be mutually happy not to renew a fixed term tenancy. Instead the parties may be very happy to simply allow the tenancy to "run on" as a periodic tenancy with no fixed end date.
- This can allow more flexibility for both parties without either demonstrating any ongoing commitment.
- Unlike a periodic tenancy, a new fixed term tenancy involves additional (and often unnecessary) work and accompanying fees.
- Any existing held deposit must be re-registered upon renewal within 30 days, even when it is the same tenants renewing, involving additional work and fees.
- Should the landlord or tenant wish to end a tenancy it may suit either party to be able to do this more speedily e.g. should circumstances change: job loss, sell house, etc.
- A tenant must provide the landlord with only one month's notice to end a periodic tenancy whereas the landlord must provide 2 months. If either party wish to end the tenancy they do not have to allow six months to elapse as they might with a fixed term tenancy. By mutual agreement there is nothing to prevent either party releasing the other from any term. Commercially this may not be practical.
- However, if a student landlord's tenants suddenly announce they are leaving in February, then the landlord is likely to have to wait several months until the next academic year, before finding more students. If this is the market niche adopted by the student landlord he will set the term for the duration of the academic year thereby avoiding such dilemma and rent voids.
- Both the students and the landlord are likely to want mutual commitment from each other so that they can depend on guaranteed occupancy without interrupting studies to move or suffering the loss of rent during a void.
Published: 11 November 2013
Last Updated: 17 November 2021