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Fixed term tenancy contract Vs rolling tenancy agreement

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My tenants are coming to the end of their 6 month contract in my house and stated that they would like to sign a new 12 month contract or anktger 6 month contract, rather than remaining on a rolling/month to month agreement.

They have reported to the estate agents that they are very settled and would like the security of a longer contract.

What are the advantages and disadvantages, from my point of view, in offering them a fixed term contract rather than keeping them on a rolling contract? I have no plans to replace them, nor have I plans to up their rent in the next 12 months but, from my understanding, if problems arise (not paying rent) it will be easier for me to evict them in a monthly contract. Surely there are fees involved in writing up a contract? If security is the only thing the require maybe I could just reassure the Tennant's of my plans of no change?

Thanks in advance



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Hi Paul

I've been in the same position with all 3 of my current properties so hopefully can share my perspective. 

The benefits of a new 6/12 month tenancy is that in theory it ties your tennant down with a bit more certainty, but as you say you will pay a fee for a new agreement. In theory they would be forced to stay there for the duration, but as I'm sure many people here can testify, tennants can find a way to leave if they really want to and leave you in the lurch. 

I personally think sticking with rolling tenancies works best. No fees involved, and although the tenant might not feel as assured in theory, after you have spoken to them and confirmed your position that you don't intend to replace them, they are welcome to stay as long as they like and as long as they pay the rent (as that's clearly in your best interests anyway) but it simply gives them the flexibility to leave if and when they choose to (although you really hope they don't), that usually puts their minds at ease. Naturally it does benefit you too if you are forced into a position where you need to get them out... but hopefully it will never come to that. 

My 3 current tenants started on 6 month contracts, and have been in the properties 4 years, 3 years and around 18 months respectively now now so it's clearly worked for us. 

Prior to the current 18 month tennant, I also had the same agreement with his predecessor, who had been there around 12 months in total when they found they were due to have twins and would have to move back in with parents due to poor maternity pay position etc, it gave them the benefit of getting out earlier whilst finances were OK, rather than being dragged out a few months and potentially causing financial difficulties for them, which wouldn't have been good for either of us. 

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I generally go onto a rolling contract but if a tenant wants security I am happy to let them sign another 6 or 12 month contract. Yes - if there are problems on either side this is slightly more difficult to break, but you already have some experience of them so its not such a leap into the dark. It may be that they have had a bad experience in the past which they don't want to repeat. If they want to make your house their long term home that it good. Hopefully they will stay even longer & perhaps look after it better because of that.

If they had left after 6 months you would have offered a new tenant a 6 month contract - so why not?

My only stipulation is that if the agent charges a fee (my properties are all managed) then they would ned to pay for the new contract, as they want it not me. But it is a really simple thing to do & should not cost more than £50 if that.

If they are good tenants & want to stay my advice is do what you can to keep them :) 

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