Once the tenancy period as stated in your rental agreement comes to a close, you’ll be left with two options, to vacate the premises or renew your tenancy. If you decide to renew your tenancy, a number of events follow. Here are the highlights.
1. A Rolling Tenancy Is Automatically Renewed
Under rolling tenancy, the clauses under the previous contract of your tenancy immediately become valid under the new one. This kind of tenancy is highly profitable for you as a tenant, as you get to continue staying in the same house without going through the hassle of renewing the contract. Another advantage is that the landlord doesn’t get a chance to increase the rent.
Note, however, that if you’re subletting the apartment from the original tenant, the rolling tenancy clause will not be applicable.
2. Tenancy Renewal Must Be Discussed With The Landlord Beforehand
More often than not, your landlord will intimate you about the impending cessation of the contract before the actual expiration date. If you wish to continue occupying the property, you’ll have to intimate the landlord of your intentions. Remember, just as you find relocating difficult, your landlord also dislikes the process of screening a new tenant every now and then. It’s therefore very likely that your landlord will gladly extend your lease.
In case your landlord is disagreeing to renew the tenancy on the grounds of self-occupancy and redevelopment, you have the right to ask him for a statutory compensation.
3. Tenancy Renewal Typically Brings About An Increase In Rent Price
Renewing your tenancy will, in most cases, bring about an increase in the rent. The landlord will provide you with a rent increase notice, which will include things like the new proposed rent, the new lease period, and the amount of time within which you have to communicate your decision to the landlord. About whether you find the demands of the notice agreeable or not, you need to address a letter to the landlord informing him or her of your decision.
You can decide on whether the rent increase is reasonable or not by considering factors like energy charges, property tax increments, rise in insurance values, and major maintenance and repair charges.
4. Renewing A Tenancy Agreement Comes At A Fee
In case you decide to renew your tenancy, your landlord might ask for a renewal fee. This can be avoided by negotiating reasonably. If the landlord is insistent upon collecting a fee, try to negotiate with him to at least lower the amount. It will be much cheaper for him to settle for an existing tenant than to put the property on the rental market again. So chances are that the landlord will agree.