What rights to tenants have after their fixed term ends?

A tenant can sign a tenancy agreement for a specific amount of time – usually six months or 12 months.

When the agreement ends, the agent and landlord have three options:

1. Sign up the tenant to a renewal agreement for a new fixed term
2. Leave the tenancy to become periodic
3. Take back possession if the tenant has vacated

If the tenants have moved out

By definition, a fixed term will begin and finish on two specific days. Should tenants vacate on the final day of the tenancy and hand back vacant possession of the property to the landlord, the tenancy will end and their liability going forward will cease.

If the tenant vacates the property during the fixed term this does not end the tenancy unless the tenant use a break clause in the tenancy agreement, which allows the agreement to be terminated earlier than the end of the fixed term. If a tenant does want to leave sooner than the last day of the fixed term, the tenant will need to negotiate to see if a replacement tenant can be found or if the landlord is happy to agree an early surrender of the agreement.

If tenants stay in occupation after the end of the fixed term

In most cases tenants will have a new periodic tenancy that will start immediately after the fixed term ends. There are two types of periodic tenancies:

Statutory periodic tenancies –  If the contract mentions nothing about what happens after the end of the fixed term and no new fixed term contract is signed, then in accordance with section 5 of the Housing Act 1988 the tenancy rolls on the same terms per the expired Assured Shorthold Tenancy (AST) contract and with rent payments and periods kept the same.

Contractual periodic tenancy – A contractual periodic tenancy is created when the AST agreement specifically refers to the contract continuing month by month for example. It differs from a statutory periodic tenancy as it is not deemed a new tenancy and just a continuation of the existing contract on a contractually agreed basis.

Tips for property managers and landlords

• To keep void periods to a minimum as far as possible, it is advisable to keep the lines of communication open with the tenant to see what their intentions are when the fixed term is due to expire.
• If renewal agreements are signed, landlords should consider the implication for any guarantors and seek legal advice if new agreements need to be signed
• If a tenant does decide to vacate the property, landlords should complete the usual checkout procedures to gather evidence in case any deductions need to be made from the deposit.

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