This is part of a series of guidance about tenancy agreements provided for students.
Fixed Term vs. Periodic Tenancies
Fixed Term Tenancies
Most rented property is let, at least initially, on a fixed term tenancy. This means that at the start it is defined how long the tenancy will last. This gives rights and obligations to both the landlord and the tenant for the duration of the fixed term. The landlord must let the tenant live in the property for the duration of the fixed term – he cannot require the tenant to move out during it (except under specific circumstances, such as rent arrears, and even then a court order will be required). The tenant must pay the rent for the whole of the fixed term – even if he moves out the rent will still be due.
It is possible for a fixed term tenancy to include a ‘break clause’, which would give the tenant the right to give notice to move out before the end of the tenancy, but this is quite rare.
Because you will be bound to pay the rent for the whole of the fixed term, it is important that you agree a term that you are happy with. If you sign a contract lasting twelve months from September to August, you will have to pay the rent for the whole twelve months, even if you move out of the house in June after your exams.
Periodic Tenancies
A periodic tenancy runs from period to period. The period is a short but expressed period (such as a week, month or quarter) – monthly is the most common. It is a perfectly valid way of setting up a tenancy, but is less common because it provides less certainty, both to the landlord and the tenant.
The notice period (i.e. how much notice the landlord needs to give the tenant to move out, and vice versa) will depend on the rental period. In the case of a weekly periodic tenancy it would usually be four weeks; for a monthly period the landlord will usually have to give two months notice (if the tenancy is an AST), but the tenant would only have to give one month.
Although it will not apply to most student sharers, it is relatively common for people renting family accommodation to stay in a property at the end of their fixed term (by mutual agreement with the landlord, of course). In this case, if no new fixed term contract is signed the tenancy automatically becomes periodic at the end of the initial fixed term, with the other terms of the initial agreement staying in place.
Summary
- A fixed term tenancy provides a secure right for the tenant to live in the property for the agreed term, and a secure right to the rent for the landlord for the same term.
- Because you will be bound to pay the rent for the whole of the fixed term be sure that you are happy with it.
- Periodic tenancies are probably a less common way to start a tenancy, but a fixed term tenancy may develop into one.
Pages in this Guide
- Types of Tenancy
- Joint vs. Individual Tenancies
- Fixed term vs. Periodic Tenancies
- A Valid Tenancy
- What’s included in a Tenancy Agreement
- Exercising Caution with Tenancy Agreements
- Verbal Agreements
This information is provided for general guidance only, and should not be considered to be definitive or legally binding in respect of any specific situation. If you have a specific query, you should contact your Student Advice Centre, or a Citizens’ Advice Bureau.
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