SECTION 6 – RESPONSIBILITIES AT THE END OF THE FIXED TERM
There several things to consider here:
If a tenant wants to stay, consider if you want to sign a new fixed-term, or would you rather a rolling periodic tenancy
Renewal fees cannot be charged to tenants.
If you opt for a rolling periodic tenancy, you carry on as before but with no fixed term. The tenant can leave at any time by giving the required notice.
Consider if you want to increase the rent
You can increase the rent by agreement with the tenant, or as prescribed in your tenancy agreement, or by following the legal process.
If you want your tenant to leave, you must…
You must give the proper notice. The length of notice depends on the grounds under which you are asking them to leave.
Tenants cannot be required to leave before the fixed period has come to an end unless there is a break clause or you have grounds for eviction under section 8 of the Housing Act 1988.
If your tenant wants to leave, they must…
Give you the required notice as set out in the tenancy agreement.
If they are in the fixed term, the tenancy agreement can be ended if both parties agree.
But unless a suitable replacement tenant is found, the tenant will remain liable for rent until the fixed-term agreement has ended or required notice has expired in the case of a rolling periodic tenancy.
You can charge your tenant a fee if they wish to end the tenancy early, although this fee must not exceed your loss incurred or reasonable costs of your letting agent.
Returning The Deposit
If the tenant has met the tenancy terms, the deposit should be to the tenant in full.
You can withhold part of the tenant’s deposit to compensate for damage caused to the property or furniture or for reasonable cleaning costs. You can’t withhold a deposit for ‘reasonable wear and tear’.
You should carry out an end of tenancy inspection with the tenant present and the inventory provided at check-in. Take note of any missing, damaged or not clean. Take photos and reach an agreement with the tenant.
Deposits should be returned as soon as possible. If an insurance-backed scheme protects the deposit, you must return the deposit within 10 days of you and the tenant agreeing on how much you will retain.
If the deposit is in a custodial scheme, you must respond promptly to any requests received from the scheme.
If the tenant disagrees with the amount you decide to withhold, they may dispute it with the deposit scheme.
You should check the process of raising a dispute with your scheme.
Your tenant cannot withhold rent because they think that it will be taken from the deposit.
At the end of the tenancy, ask your tenant if they have paid the bills they are due to pay.
The tenant should remove all their belongings and rubbish from the property. If items are left, the tenant will be responsible for paying for removal and storage costs.
If you wish to sell or dispose of tenants possessions, you must serve a written notice giving reasonable notice of your intentions. The cost of removal, storage and disposal may be deducted from any sale proceeds.
