JAC Strattons will contact both parties (Landlord and
Tenant) to ascertain their intention for renewal two to three months prior to the
expiry of your tenancy.
What to expect upon renewal?
Most commonly, the Landlord will expect to increase the rent upon renewal. At this
time we will review the market conditions, taking into consideration the condition,
location and current rent of the property. Individual cases will be discussed when
the renewal is due. Most negotiations would be influenced by the prevailing market
rates. The Retail Price Index can be used as an indicator of potential change. The
RPI is published by the Office of National Statistics on a monthly basis and can
be found here; http://www.statistics.gov.uk/cci/nugget.asp?id=19
It is important to consider your desired term, most commonly a 12 month period is
agreed, however, you could request a shorter or longer term depending on your preferences.
Occasionally one or two month short extensions are negotiable, subject to the Landlord’s
- General Break Clause for Assured Shorthold Tenancies
Generally, in the first term of your tenancy, it is agreed that the tenant can serve
notice a minimum of 30 or 60 days prior to vacating after a specified restriction
period. Upon renewal, this restriction on the break clause may reoccur depending
on your contract. Please refer to your Tenancy Agreement / Memorandum for reference.
A Landlord must serve two months notice to terminate the tenancy to comply with
current legislation if there is a break clause in the contract. (There are certain
exceptions and some tenancies will not have a break clause in the original contract.
Please check with our consultant prior to signing your Tenancy Agreement).
- Business Break Clause for Company lets and Contractual Tenancies
Upon renewal, the 6 months restriction applicable in the first term will not in
most cases be reinstated. However, this restriction on the break clause may reoccur
depending on negotiation at the commencement of the tenancy or at the renewal point.
Please refer to the original Tenancy Agreement or most recent renewal memorandum.
If you have a business break clause, corporate tenants can terminate anytime during
the tenancy for reasons specified in the business break clause only. Tenants are
not eligible to terminate for any other reason other than those specified in the
agreement, and it is unlikely a Landlord will have the option to terminate the tenancy
prior to its expiry.
- Option to Renew
On occasion, the Tenancy Agreement will contain an ‘Option to Renew’. The consequence
of this clause is that the tenant will have the option to extend the contract for
a further term. Often, the Option to Renew will stipulate the number of times that
the tenant can exercise this clause, usually between one and three years. The Landlord
cannot serve notice to terminate the tenancy at any time whilst the Option to Renew
is in place. However, the clause will stipulate for the rent to increase by the
Tenants are responsible for informing the Landlord of any damage, repairs and maintenance
matters that may occur over the course of the tenancy. They are required to report
these to Landlords promptly in order to avoid potential long term consequences.
If you have requests not of an urgent matter, you can propose such repairs or replacements
upon renewal, prior to negotiations with your Landlord, as such issues may influence
the renewal process.
Example of Renewal Procedure
- Tenancy starts 1st April 2012
- Renewal reminder is sent to both parties two - three months in advance.
- Open negotiations (rent, break clause etc.)
- Upon agreement of terms, the renewal memorandum is drawn and sent to both parties
- Both documents returned to JAC Strattons, dated and exchanged.