Jungle Property Blog

Common Law

• * The minimum period for a notice to quit is a complete period of the tenancy
• * The notice period must end on the last day of a period of the tenancy
• * A notice that expires on the first day of a period of the tenancy has the same effect as a notice ending on the previous day

Statute

• * A notice must be in writing
• * A notice must be given not less than 4 weeks before the date on which it is to take effect

Case Law

• * If the period of the tenancy is longer than 4 weeks, the notice period is equivalent to the period of the tenancy, except for yearly periodic tenancies where the notice period is six months
• * Once served a notice cannot be withdrawn
• * In calculating the notice period, the day on which a notice is served is included but the last day referred to in the notice is not. For example, a notice served on a Tuesday that expires on a Tuesday four weeks later would comply with the four weeks’ notice requirement.
• * A notice must expire on either the first or last day of a period of the tenancy. For example, a notice served on the first of a month to end a monthly tenancy that began on the first of January could expire on the first day of a whole period of the tenancy, i.e. the first of February. It could not expire on the last day of the period, i.e 31 January, because that would not constitute a full monthly period of notice (it would be short by one day).
• * A notice that includes an appropriately worded ‘savings clause’ will be valid

Editors Note: There is no rule of law that requires a tenant to give notice to end a fixed term tenancy. The now withdrawn guidance on unfair terms in tenancy agreements published by the Office of Fair Trading in September 2005 stated:

‘A fixed term tenancy comes to an end when the fixed term runs out and a tenant does not have to give notice to end it.‘

The guidance implied any clauses requiring a tenant to give notice to end a fixed term tenancy is a misleading termination clause.

The same guidance objects to terms that impose a contractual obligation on the tenant to give notice in order for the tenancy to be terminated at the end of the fixed term.

Editors Note: We are not aware this particular guidance has ever been tested in court. The same guidance suggests landlords should serve a notice requiring possession if they want to make it clear they want to end the tenancy at the end of the fixed term. This is not a very elegant solution. Aside from the complexities of such notices it would create uncertainty for the tenants having been served with a ‘sword of Damocles’ notice so early in a tenancy. A tenant notifying the Landlord they plan to end the tenancy at the end of the fixed term is a reasonable courtesy.

Contract

* A tenancy agreement may require the tenant to give a longer period of notice.

Almost 12 million households in the UK own a pet so you could question why a landlord would exclude such a large proportion of the population by stipulating ‘no pets’ when they advertise their property for rent.

Traditionally many landlords have recognised how widespread pet ownership is and how tenants with pets can make good long-term tenants. Pets are often welcomed by landlords subject to certain conditions including payment of a higher deposit and an agreement that the tenant would have the carpets professionally cleaned at the end of the tenancy.

The arrival of the Tenant Fees Act on 1st June 2019 is a game-changer and is likely to have a negative effect on tenants with pets. Three parts of the Act that will have an effect on tenancies with pets are:

1. Tenancy Deposits are now capped at 5 weeks rent – landlords can no longer require a tenant pays a tenancy deposit higher than 5 weeks rent.

2. A landlord must not require the tenant enters into a contract for the provision of a service with a third party in connection with a tenancy – landlords can no longer require a tenant to enter into a contract with a vet, pest controller or cleaner.

3. A landlord must not require the tenant enters into a contract for insurance with a third party in connection with a tenancy – landlords can no longer require a tenant to have tenant liability insurance or third party liability insurance for their pet.

Likely Outcome

1. Landlords are less likely to let their property to tenants with pets – the changes the Act brings will be perceived to expose landlords to higher risk and cost so many landlords will simply advertise their properties as ‘no pets’. For those landlords who never welcomed tenants with pets their stance will harden and more than ever these landlords will refuse to consider tenants with pets.

2. Higher rents – of those landlords who welcomed pets in the past many (but not all) will continue to do so ‘subject to negotiation’ and landlords will expect tenants with pets to offer and pay a higher rent to cover three things:

• Treating the property for fleas and other parasites at the end of the tenancy
• Cleaning the flooring and soft furnishings at the end of the tenancy
• Additional rent in lieu of the additional tenancy deposit (pet deposit) previously collected to cover any damage caused by the pet

A few points of note on this:

• 9% of the UK population have a pet allergy. 1 in 4 cats and 1 in 7 dogs are carrying fleas, and about 11 per cent of these fleas are infected with potentially pathogenic bacteria (Bartonella). For the sake of the health of the next occupier of their property landlords can only hope, but cannot require, outgoing tenants will treat the property for fleas and other parasites and clean the flooring and soft furnishings so will need to take responsibility for this. The only way to legally recover the cost of this is to charge tenants with pets a higher rent.

• The cost of the flea treatment and cleaning will reasonably need to be collected during the term certain for the tenancy (fixed term of the tenancy). Under the Act landlords cannot charge a higher rent for a period at the start of the tenancy and reduce the rent for a later period in the tenancy. The larger the property and the shorter the fixed term, the higher the premium will be and with most tenancies continuing beyond the fixed term, tenants with pets will ultimately be paying more in increased rent than the cost of the fees they paid before the Act became law. Good news for landlords, bad news for tenants with pets.

• Landlords will need to ensure, and make it clear, tenants are paying a ‘higher rent’ and not a ‘pet fee’ or ‘pet deposit’ as these fees or deposits are prohibited under the Act.

• Section 13 rent increases during a tenancy for which a tenant is paying a premium rent could prove to be awkward as tenants could challenge the increase on the grounds that the rent is unreasonable and a rent above market value may be considered unreasonable by a tribunal. A possible workaround for landlords is to include a rent review clause in the tenancy agreement. Rent review clauses apply to fixed term tenancies and contractual periodic tenancies only.

Further Reading

1 in 4 cats and 1 in 7 dogs carrying fleas with high levels of bacteria, finds Big Flea Project (Bristol University)

1. Rent

2. Tenancy Deposit – maximum five weeks’ rent where the annual rent in respect of the tenancy immediately after its grant, renewal or continuance is less than £50,000, or six weeks’ rent, where the annual rent in respect of the tenancy immediately after its grant, renewal or continuance is £50,000 or more.

3. Holding Deposit – maximum one week’s rent.

4. Payment in the event of a default – for the loss of a key to, or other security device giving access to, the housing to which the tenancy relates pay the costs which are reasonably incurred by the Landlord or his Agent as a result of the default. {my understanding from this is that ‘security device giving access’ is a fob or card – sometimes called proximity devices}

5. Payment in the event of a default – for the failure to make a payment of rent in full before the end of the period of 14 days beginning with the date (“the due date”) on which the payment is required to be made in accordance with the tenancy agreement pay the aggregate of the amounts found by applying, in relation to each day after the due date for which the rent remains unpaid, an annual percentage rate of 3% above the Bank of England base rate to the amount of rent that remains unpaid at the end of that day.

6. Payment of damages for breach of a tenancy agreement or an agreement between a letting agent and a relevant person

7. On variation, assignment or novation of a tenancy at the tenant’s request pay the greatest of £50 and the reasonable costs of the person to whom the payment is to be made in respect of the variation, assignment or novation of the tenancy.

8. On termination of a tenancy at the tenant’s request in the case of a fixed term tenancy, before the end of the term, or in the case of a periodic tenancy, without the tenant giving the period of notice required under the tenancy agreement or by virtue of any rule of law pay the Landlord the loss suffered by the Landlord and pay his Agent the reasonable costs of the Agent for arranging the termination of a tenancy.

9. Payment in respect of council tax

10. Payment in respect of utilities

11. Payment in respect of a television licence

12. Payment in respect of communication services

A Landlord or Agent taking any other payments from a Tenant on or after 1st June 2019 in consideration of the grant, renewal, continuance, variation, assignment, novation or termination of a tenancy are prohibited.