Periodic tenancy vs tenancy at will

The likely inference of a tenancy at will that can be terminated at any time by a landlord could have serious implications for a tenant ’s commercial interests, especially where the tenant employs staff or has spent money on an expensive fit-out, although at the same time the tenant could benefit from the flexibility of being able to leave at a moment’s notice if it has cash-flow issues or. One big, glaring difference between periodic tenancy and tenancy at will is that periodic tenancy includes something in writing while tenancy at will does not. The argument before the Court was whether the tenant was holding over under a yearly periodic tenancy (which requires at least six months’ notice to terminate , expiring on the anniversary, or half anniversary, of the term commencement), or whether this was a tenancy at will , which could be brought to an end on much shorter notice. In this instance, the existence of a periodic tenancy was prejudicial to the tenant.

What is a periodic tenancy?

How long does a periodic tenancy last? Can a tenant terminate a tenancy agreement? This case was about liability to pay Council Tax when a tenant had vacated before the Notice to Quit had expired. The fact that the tenancy was a contractual periodic tenancy and not a statutory periodic tenancy was a factor in the landlord succeeding in having no liability to pay despite the billing authority believing it was responsible.

The expression business tenancy is used to refer to a tenancy of premises that are used for the purposes of a business. A tenancy-at-will is from the outset intended to be short and can be terminated at any time by either party. A tenancy-a-will is often used as an interim tenancy allowing the parties to negotiate the terms of a longer lease and must not be prolonged.

The lease, however, typically stipulates when notice to.

The last thing the landlord wants is to lose a good tenant , so leaving the tenant alone and allowing the tenancy to become periodic can often be the best strategy. This also benefits the tenant : landlords with long term tenants often leave the rent at the original amount for extended periods, again in the belief that increasing the rent may result in a good tenant leaving them. A contractual periodic tenancy exists when both landlord and tenant agree in contract that the tenancy will become a periodic tenancy after the fixed term, as opposed to allowing it to naturally roll into a periodic tenancy.

Thanks for your reply. I am not wishing to terminate the tenancy. To sum up, it would appear that a periodic tenancy is a statutory periodic if there is no mention of any changed terms within the body of the contract and the fixed term comes to an end with the tenant remaining in situ. It will be a “contractual periodic tenancy” if the fixed term says it will become one and there is an agreed alteration of terms. A tenancy at will intended for short term occupation, typically where the parties are negotiating for a longer term lease.

To end a periodic tenancy , tenants will need to give the right amount of notice depending on the terms stated in the tenancy agreement. Periodic Tenancy Notice: Tenants. They also need to ensure it ends on the right day. For example, if a monthly periodic tenancy began on 1st January it will need to end on the last or the 1st day of the month.

This sort of periodic tenancy is known as a ‘statutory’ periodic tenancy – because it was created by statute, i. In most cases, the period will be monthly or weekly, depending on how the rent is payable under the terms of the tenancy agreement. A “Contractual periodic tenancy” is slightly different to a “Statutory periodic tenancy”. It will roll monthly or weekly depending how often your rent was due during the fixed term.

A periodic tenancy continues on the same terms and you should pay your rent as normal. Summary The Court of Appeal has provided further guidance as to whether a tenant that is holding over after the expiry of its lease is doing so under a new periodic tenancy or a tenancy at will. In a periodic - tenancy arrangement, the tenant agrees to rent the home for a certain period of time, usually either week to week or month to. Security of tenure does not apply to a tenancy at will, but it does apply to a periodic tenancy so care must be taken to ensure that amendments are not agreed which could result in the tenancy being construed as a periodic or fixed term tenancy , for example, the incorporation of an obligation on the part of the landlord not to terminate except on a specified length of notice. This practice note discusses the differences between a lease, licence and tenancy at will in the context of business premises.

It concentrates on when to use which arrangement, particularly in the context of short term occupational arrangements. A licence to occupy is a personal right for the occupier to use the property and does not create an estate in land. A licensee does not have a right to exclusive possession. Therefore, if the occupier is a true licensee, the owner can simply revoke the licence and bring the occupation to an end. With consent, the tenant becomes at least a tenant at will.

If the tenant at will continues to pay rent, even a rent previously reserved at an annual rate, that is not inconsistent with a tenancy.