New lease required?

beatlesfan3333

Hi I'm a landlord and I'm also renting myself. My tenant's first year is coming to an end and they have asked for a two year lease to sign. My first year in my place is also ending and I plan to stay on. Should I ask for a new lease myself, is it necessary? I assumed that Part 4 kicks in anyway so a new lease isn't really needed is it? I dont mind providing one for my tenants if they want it but I wasn't sure if I should bother asking for one myself. Thanks for the help.

athtrasna

beatlesfan3333 wrote: »

Hi I'm a landlord and I'm also renting myself. My tenant's first year is coming to an end and they have asked for a two year lease to sign. My first year in my place is also ending and I plan to stay on. Should I ask for a new lease myself, is it necessary? I assumed that Part 4 kicks in anyway so a new lease isn't really needed is it? I dont mind providing one for my tenants if they want it but I wasn't sure if I should bother asking for one myself. Thanks for the help.

If I was in your place I would prefer both leases to be Part 4 tenancies for flexibility.

beatlesfan3333

Thanks, does that mean it's a lease that specifically stated it is a part 4 tenancy - meaning the tenants can stay for four years. Is it essentially a four year lease? Apologies for my ignorance, its my first time doing this. Cheers

athtrasna

Sorry, part 4 tenancies instead of leases

beatlesfan3333

Sorry, so do you think I shouldn't ask my landlord for a new lease? I should just tell him I intend to stay and that automatically means it's a part 4 tenancy? I was just wondering if im missing out on anything or any benefits by not signing a new lease with him? Thanks for your help!

Mrs OBumble

beatlesfan3333 wrote: »

Sorry, so do you think I shouldn't ask my landlord for a new lease? I should just tell him I intend to stay and that automatically means it's a part 4 tenancy? I was just wondering if im missing out on anything or any benefits by not signing a new lease with him? Thanks for your help!

If your tenant gets a two year lease, you have pretty much no way to get them out before the two years ate up, even if your circumstances change and you want to move back in to their current place.

Whereas if there is no lease, just a part 4 tenancy, then there are some reasons why you could end the tenancy, with appropriate notice of course.

Victor

If you give a 2 years lease, presumably you won't be able to increase the rent and for those two years, the rent will be what you set last year.

beatlesfan3333

Right, I see. Thanks for explaining that. I'll see if they'll accept not signing a new lease then. Thanks for the help!

davo10

beatlesfan3333 wrote: »

Right, I see. Thanks for explaining that. I'll see if they'll accept not signing a new lease then. Thanks for the help!

You don't need to worry about whether they will accept it or not, just inform them that they automatically acquire Part 4 rights after 6 months. As stated above, right now you cannot raise rent for at least one more year and if you give them a two year lease, you will not be able to increase until the term of that lease is up. If you give them a lease for two years, they are entitled to stay there for the duration whereas if they have Part 4, you can move them out and move in yourself if needs be, giving correct notice of course.

In short, you have nothing to gain by giving them a two year lease, and potentially a lot to lose.

beatlesfan3333

Okay cool, I get it now. Thanks so much for all of the advice!