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When it comes to leasing commercial property, understanding the various types of Tenancy Agreements is crucial. Among them, a Rolling Tenancy Agreement stands out as a dynamic and flexible option for both landlords and tenants. 

If you're a business owner venturing into the world of commercial leases or seeking a more adaptable arrangement, you've come to the right place. In this article, we'll explore the ins and outs of a Rolling Tenancy Agreement, unravelling its benefits and possibilities, plus how it can shape the future of your business.

Can you have a Rolling Tenancy Agreement?

A Rolling Tenancy Agreement is indeed possible. Unlike a Fixed-Term Tenancy Agreement, which establishes a specific end date, a Rolling Tenancy Agreement persists periodically until either the landlord or the tenant takes action to terminate the agreement. Parties frequently opt for this type of agreement when they desire an ongoing tenancy without the constraints of a fixed term.

Does a Tenancy Agreement roll over if no notice is served?

In the absence of any notice, a Rolling Tenancy Agreement will automatically transition into a periodic basis. This implies that when the initial fixed-term tenancy concludes and neither party takes action to terminate or renegotiate the agreement, the tenancy seamlessly shifts into a periodic tenancy. Throughout the periodic tenancy, the terms and conditions of the original agreement typically remain in effect.

Can a landlord refuse a rolling contract?

Yes, a landlord can refuse a rolling contract. While Rolling Tenancy Agreements offer flexibility, it's important to note that landlords have the right to refuse to enter into a rolling contract. Landlords may have their preferences and may prefer to have fixed-term tenancies or to negotiate new terms for each tenancy period. Therefore, it's important to discuss your leasing preferences with the landlord before entering into any agreement.

Can a landlord refuse to renew a Tenancy Agreement?

Yes, a landlord possesses the right to refuse the renewal of a Tenancy Agreement. When a fixed-term tenancy reaches its end, the landlord bears no obligation to extend the agreement. The decision to renew the tenancy rests solely with the landlord, who has the discretion to either proceed with the renewal or decline it.

They may choose to extend the existing tenancy, negotiate new terms or terminate the tenancy altogether. It's advisable to communicate with your landlord well in advance to discuss their intentions and reach an agreement that suits both parties.

What does periodic tenancy mean?

A periodic tenancy is a tenancy that rolls on without a fixed end date. It happens when a fixed-term tenancy concludes and neither party takes steps to terminate or renegotiate the agreement. 

Throughout a periodic tenancy, the original terms and conditions of the Tenancy Agreement generally stay in effect, encompassing the rent amount and other obligations. Nonetheless, either party retains the ability to terminate the tenancy by serving the appropriate notice.

What is a statutory periodic tenancy?

A statutory periodic tenancy automatically comes into existence through the operation of law. It occurs when a fixed-term Assured Shorthold Tenancy (AST) concludes, and the tenant continues to occupy the property with the landlord's permission.

The terms and conditions of the original AST continue to apply, but the tenancy becomes periodic. A statutory periodic tenancy provides security of tenure for tenants and offers them similar protections as an AST.

Can a landlord increase rent on a rolling contract?

Yes, landlords can exercise the right to increase rent on a rolling contract. However, they must adhere to specific procedures.  Under the Housing Act 1988, landlords must provide tenants with a written notice, referred to as a Section 13 notice, at least one month before the intended increase takes effect.

The notice must include the new rent amount and the date it will take effect. Tenants have the right to challenge the proposed increase by referring it to a rent assessment committee if they believe it to be unfair.

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A Rolling Tenancy Agreement provides flexibility for both landlords and tenants in commercial property leasing. It allows for an ongoing tenancy without committing to a fixed term. 

However, it's important to communicate with the landlord and reach an agreement on the terms and conditions of the tenancy. Landlords have the right to refuse a rolling contract or to refuse to renew a Tenancy Agreement.

Tenants should be aware of their rights and obligations under a Rolling Tenancy Agreement, including notice periods and potential rent increases. By understanding the legal framework and having open discussions, you can make an informed decision regarding your commercial leases. 

At LawBite, we're committed to empowering small businesses with the knowledge and solutions they need to navigate the legal landscape successfully. Whether you’re a commercial tenant that needs support with an agreement or a landlord who would like to have a new agreement drafted, our commercial property lawyers are here to help.

To find out more book a free 15 minute consultation with one of our lawyers, or call us on 020 3808 8314.


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In closing

Nothing in this article constitutes legal advice on which you should rely. The article is provided for general information purposes only. Professional legal advice should always be sought before taking any action relating to or relying on the content of this article. Our Platform Terms of Use apply to this article.

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