View Full Version : Renewal clauses
22-09-2011, 09:22 AM
I don't normally include renewal clauses in my agreements but I'm just agreeing terms on a new flat and the tenant is keen for an option to renew for a 2nd year & is happy to include a fixed increase which would be of interest but I'm unclear whether such an option is mutual? ie if my circumstances change could I refuse his request to extend .
22-09-2011, 09:35 AM
What would this "option to renew" clause add to the default situationof an agreement with no such clause?
22-09-2011, 11:11 AM
That's what I'm not clear on - I normally just contact tenants towards the end of their tenancy before issuing a s21 to see if they want to stay & if so agree a new rent & do a single page extension giving them another year. The clause he's suggesting (wording below) sets limits for the rent increase in year 2 which I'm attracted to, but I'm not sure I'm comfortable committing to 2 years which I think this does (?). Could I include a break clause in year 2 ie if tenant extends under Clause XXX then either party can terminate giving 2 months prior notice?
22-09-2011, 11:21 AM
Tenant can in any case stay beyond their initial 12 month term unless you evict them.
If they do stay, the tenancy becomes periodic and you can serve a s.13 notice to increase the rent.
If you want to set a rent for year 2 now, I think what you could do is simply to offer a 2 year AST with a clause stating how the rent will increase from the 13th month.
You can also add a break clause, e.g. to allow the fixed term to end exactly at the end of the 12th month or at any time thereafter.
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