A ‘helpful’ clause around notice periods in the Renters’ Rights Bill could cause landlords confusion, according to property lawyer David Smith.
Smith, at Spector Constant & Williams, says after the legislation is implemented, all existing fixed terms will end, and tenants will be able to give two months’ notice at any time. Notice will also probably have to expire at the end of a relevant period of the tenancy, so will frequently be more than two months’ notice in practice.
However, he explains the new provisions state that the notice period is two months unless the landlord and tenant have agreed a shorter notice period in writing.
“Therein lies the rub,” says Smith. “It is not uncommon for tenancy agreements to say that once the tenancy becomes periodic the tenant will need to give one month’s notice. But under the Bill it seems to me that set of words saying the tenant needs to give one month’s notice is actually the landlord agreeing to a shorter notice period in writing. So the landlord is not likely to get the benefit of the longer notice period.”
These clauses have been used more frequently, not least because they were used to create a contractual periodic tenancy agreement and allow for the use of a rent increase clause and s13 notice, he adds. But they are also used to make things clear to tenants and make sure that they give notice. “Ironically, that more helpful wording may now end up putting landlords in a difficult position."
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