Under the Housing Act 1988, after a fixed term tenancy agreement, the tenancy will continue on a weekly or monthly basis (depending on how the rent is paid), and the same terms and conditions as the preceding written agreement will apply. This sort of tenancy is called a periodic tenancy.
Although it is not strictly necessary to renew a tenancy agreement, there are some circumstances where it’s a good idea to do so.
The safest method to issue a rent increase to a tenant is to get them to agree to, and sign, a new tenancy agreement. The rent increase cannot be challenged by the tenant once they have signed the new tenancy agreement.
Changes in Occupancy.
If there is any change in the parties to the tenancy agreement a new tenancy agreement should be issued. For example, if one of the tenants has left and a new tenant is taking their place, or if the landlord has sold the property on to a new landlord and they are keeping the tenant on.
Changes In Terms.
If a landlord wants to change the terms of the tenancy agreement then they will need to issue a new agreement to the tenant. This is a good idea if the tenancy agreement is quite old. There may be changes in legislation that the old agreement does not cover or there may be something the landlord wants to alter.
Fixed Term Security.
If you want the security of a further fixed term. This can be beneficial for both you and the tenant. You know that his property is let and that you will receive rent from your tenant for a specific period and the tenant knows that they cannot be evicted during that time.
Sometimes, if either the landlord or the tenant are not sure how much longer they want the agreement to run for (perhaps the landlord is considering selling the property but not sure exactly when), a periodic tenancy will be the best option. It’s more flexible as each party doesn’t have to wait until the end of the fixed term to end it.