Recurring lease

eezipc

Hi,
A friend of mine just told me that the landlord is increasing the rent next month.
Not a problem he says. Their one year lease is up next month also.
However, the agency wants him to sign another one year lease next month.

Just wondering if that is normal? I just assumed the lease existed for the first year and then continued until the tenant (or landlord) decided to move on. Is it normal practice for tenants to have to sign a yearly lease?
Thanks.

ekevosu

I am coming to the end of my lease as well and am in a similar situation, trying to negotiate with the landlady about rent, fat chance probably but the cost lost by her to reduce rent would still save her money overall when estate agent costs were taken into account.

What what I have read, after the first lease is ended (after 6 months, part 4 kicks in) you have part 4 tenancy rights so have no need to sign a new lease at all and have the option to stay for the 4 year term (not including certain reasons landlady might want you out - moving back in, selling etc).

This next part I'm not 100% sure about, so maybe one of the knowledgeable people here will clear it up, but if you do sign a new lease, it does not affect your part 4 tenancy rights and you can still leave within the new lease period as long as normal notice is given based on the amount of time you were there? In which case it might be a benefit to sign the new lease as the rent is set in it and can't be increased for that period while you still retain the right to give notice and leave?

eezipc

Thanks for that. I had a bit of a read of that on CitizensInfo and it seems fairly clear.
My friend's English would not be that great so I am worried he may be taken advantage of.
He rang the agency today and they told him he needs to sign a new 1 year lease and if he breaks that lease he will have to pay the remainder of it.
Seems a strange setup and I'm not sure how legit all this is.

The Randy Riverbeast

If you signs new 12 month lease he is agreeing to pay the new amount for 12 months. If they want a 12 month lease I would try negotiating a smaller increase. Outside of being protected from a rent increase if there hasn't been one I'm not sure what other benefits there are to having a lease.

awec

ekevosu wrote: »

I am coming to the end of my lease as well and am in a similar situation, trying to negotiate with the landlady about rent, fat chance probably but the cost lost by her to reduce rent would still save her money overall when estate agent costs were taken into account.

What what I have read, after the first lease is ended (after 6 months, part 4 kicks in) you have part 4 tenancy rights so have no need to sign a new lease at all and have the option to stay for the 4 year term (not including certain reasons landlady might want you out - moving back in, selling etc).

This next part I'm not 100% sure about, so maybe one of the knowledgeable people here will clear it up, but if you do sign a new lease, it does not affect your part 4 tenancy rights and you can still leave within the new lease period as long as normal notice is given based on the amount of time you were there? In which case it might be a benefit to sign the new lease as the rent is set in it and can't be increased for that period while you still retain the right to give notice and leave?

No.

If you sign a new year long lease you can't leave until the year is over (without incurring the usual penalties and problems).

Rent is set for at least one year whether you sign a new lease or not. The landlord can only adjust it once per 12 months.

The difference between being on a fixed term lease and being on a part 4 is that it is harder for the landlord to get rid of you in a fixed term lease. Inside a fixed term lease you can only be evicted if you fail to maintain your end of the obligations. Under Part 4 there are a few extra reasons that a landlord can ask you to move on, for example selling the property, moving in themselves or refurbishment.

To be honest OP, the only reason I would sign an extended lease is if you love where you live and you think it might be beneficial for the marginally increased security (though even then I'm not sure). Either that, or the landlord agreeing to reduce the increase in rent in exchange for you signing it. Otherwise I would just continue under Part 4.

eezipc

awec wrote: »

No.

If you sign a new year long lease you can't leave until the year is over (without incurring the usual penalties and problems).

Rent is set for at least one year whether you sign a new lease or not. The landlord can only adjust it once per 12 months.

The difference between being on a fixed term lease and being on a part 4 is that it is harder for the landlord to get rid of you in a fixed term lease. Inside a fixed term lease you can only be evicted if you fail to maintain your end of the obligations. Under Part 4 there are a few extra reasons that a landlord can ask you to move on, for example selling the property, moving in themselves or refurbishment.

To be honest OP, the only reason I would sign an extended lease is if you love where you live and you think it might be beneficial for the marginally increased security (though even then I'm not sure). Either that, or the landlord agreeing to reduce the increase in rent in exchange for you signing it. Otherwise I would just continue under Part 4.

He spoke with the agency and they said they are willing to sign a 6 month lease. It looks like he is going to go with that. He likes where he lives and has no intention of moving.
Thanks for the info guys. I have passed it on and I have made him promise to show me any contract before he signs it.

handlemaster

If a tenant moves from part 4 to a new fixed term contract can the landlord get rid of the tenant for any reason within the first six months of this new contract?

Michael D Not Higgins

handlemaster wrote: »

If a tenant moves from part 4 to a new fixed term contract can the landlord get rid of the tenant for any reason within the first six months of this new contract?

Absolutely not. The lease can only confer rights additional to those in Part 4.