Here is a question to the blog clinic from Mike who is a landlord:
I let a flat on an AST for 12 months from 1st Dec 2009. The tenant remains in occupation and it is therefore now an assured statutory periodic shorthold tenancy.
The rent has been unchanged at £900 pcm for the past four years and I have now agreed with the tenant a new rent of £1000 pcm (the market value is around £1150 pcm). The flat is in the Richmond area of London.
Can I simply create a new AST agreement at the new rent, or do I need to formally terminate the tenant’s existing agreement?
No you are fine Mike, you can just give the tenant a new fixed term tenancy agreement. The granting of the new tenancy agreement will automatically terminate the old periodic tenancy agreement.
There is no need to do anything special.
However a few notes of warning. If you have taken a tenancy deposit, you need to make sure with your scheme that it is still protected (and pay any extra fee needed) AND also (per the Superstrike case) you should re-serve the prescribed information.
This last is an irrirating beaurocratic exercise and serves little practical purpose, but unfortunatly until the problems raised by the Superstrike case are resolved, landlords are at risk if they do not do this.