The End of the Tenancy
An assured shorthold tenancy ends by notice, forfeiture or surrender (the latter being where both parties agree to early termination); or because it naturally expires at the end of the term. However, even though a tenancy has ended, the landlord cannot force their tenant to leave the premises. This is a golden rule of letting and landlords who disregard it do so at their peril.
Planning for the end of the Tenancy
At least two months prior to the end of the tenancy term, a landlord must assess what they and their tenant want to happen at expiry. If the tenant wishes to continue his occupation (and the landlord has no objection), the landlord can:
- create a new assured shorthold to commence following expiry of the current one (and with a new rent if desired); or
- allow the term to expire, in which case the tenancy would automatically continue as a statutory periodic tenancy with the same terms and conditions as the original. This type of tenancy runs according to the periodic nature of rent payments (usually month to month).
Alternatively, if the landlord wishes to bring the tenancy to an end at expiry of the current term, they must serve at least two months' notice.
Issuing Notice
If the landlord does not want a statutory periodic tenancy to be automatically created at the end of the term, they must serve due notice (according to the Housing Act 1988) to their assured shorthold tenant. The tenant, on the other hand, does not normally have to serve notice to end their obligations and leave at the end of the term, unless the tenancy agreement makes it a requirement.
The form of notice is called Section 21 - Notice Requiring Possession. These can be obtained from a legal stationer (a free version is available from www.letonthenet.com). Section 21 of the Housing Act 1988 describes the rules for notice issued during the fixed term and those for after the fixed term has expired (i.e. during a statutory periodic tenancy). We will deal here with the former only, Section 21(l)(b). To serve notice, you should complete the following procedure exactly:
1. Obtain a notice form.
2. Complete it with the details for tenant name (all joint tenants must be named on the notice), your own name and address, and the tenanted property address.
3. Date possession is required by: enter the last day of the tenancy term (this can in fact be for any time at or after expiry of the term providing the two-month rule below is followed and service is made within the tenancy term, including the last day of tenancy).
4a. Date of notice: enter the current date, providing it is at least two months before the date at 3 above (notice can be served at any time once the tenancy has begun, but it must always be at least two months prior to the possession date -but see 4b below); and providing you intend delivering it to the tenant(s) on the same day. If you intend posting the notice, add three days to the notice period to allow for delivery.
4b. If the tenancy rent periods are quarterly the minimum notice is three months; if six months or more, then six months' notice.
5. Sign the notice.
6. Make two copies of the completed notice for your files.
7. Serve the notice by hand or by post (ordinary first class post unless the tenancy agreement dictates something else). It is essential that you arrange for a witness when delivery is made in person. The courts accept that notice has been served if it has been delivered to the let property address (it does not have to be handed to the tenant in person).
Check Out
On the last day of tenancy, after the tenant has removed their possessions and vacated, you should:
- Receive the keys and details of their forwarding address.
- Read gas, electricity and water meters, and inform all utility companies and the council-tax department that they have vacated (provide them with the tenant's new address for any final bills).
- Check that any telephone line has been disconnected.
- Turn water stop-taps, heating and hot water systems off and drain water tanks (if appropriate and according to the weather conditions).
- Inspect the property thoroughly for losses, damage and cleanliness, using the inventory for guidance (make notes and take photographs of any adverse observations).
- For security purposes, consider changing the locks and/or intruder alarm code.
- Install your 'to let' boards and begin marketing for new tenants.
Deposit Refund
Providing the tenant has paid the rent in full, paid all utility bills and has returned the property in good condition (fair wear and tear excepted), return the tenant's deposit promptly.
However, the landlord is entitled to deduct the appropriate sum for any reinstatement, cleaning or repairs deemed necessary, and the reimbursement of any outstanding rent arrears, in accordance with the terms of the tenancy agreement.
