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The tenant gives two months of notice after the first 6 months. The contract is 3 years, annually renewable by the tenant.
They have an option to renew at the end of each year. Once they choose to renew, the new rent increase will be in line with the CPI increase. So it is supposed to be automatic once they choose to renew it.
It is residential. But the contract is three years, renewable annually.
What is Section 21 notice? How should I cite it?
Regarding compensating for the alternative rent, at the moment, they have completed the first year and they want to renew for the second. Since no one knows what would happen for year three, i.e., they may not renew, I shouldn't be liable for the third year, should I?
Can I propose for any other compensation method?
I did a basic search of Section 21 online. Here is says under a automatically renewed period contract, which seems to fit my case, I can just issue two months notice under Section 21(a) to the tenant. See here http://www.houseswift.co.uk/faq/section214a
My question is, do I no longer need to propose a compensation if I have a right to end the contract by giving two months notice?
Just to be clear I understand you, in my case the contract automatically rolls forward by a year and we are now at the first month of year 2. They just paid the new monthly rent. Do I still have the right to give the Section 4(a) notice of two months without compensating them?
Yes it does.
Further clarifying it, for a period contract, simply because the date has passed the 1st year end date, does such a automatic forward rolling count as renewal?
BTW, I in fact didn't agree with the renewal, nor did we sign any renewal agreement. The original contract that grants the three year period says the annual rental increase shall be in line with CPI or within a band of minimum of 2% and maximum 6%, for an automatic rolling forward. Because the CPI is below 2% this year, i.e. 1.3%, the tenant says they can stay by just paying the minimum 2%. I didn't agree with this.
"If it was agreed they could renew for a further year and they did then it is a further 12 months." Yes I think this is my case.
Does this mean if I issue a Section 21 notice now, they will leave in 12 months? Is Section 21 applicable in this case? Can they argue that despite my notice, because they did not breach the original contract, they still have an right to renew the contract for the third year? The original contract granted them the option to renew for two years.
"So if it was signed and renewed in january 15 you give notice now and they move January 16. "
Do you mean they move on Jan 16 in twelve months, since it has already been renewed a year by them?
If this is what you mean, what can I do to ask them leave asap, as I cannot wait 12 more months?
I will pay you a tip after the closure of this question. thanks.
I want them to move out asap so that I could sell my property, as I am now in much need of cash.
I will pay you a tip.
I need to evaluate how to bring this up to them. If I am liable for breach of contract, provided I propose a fair way of compensation, are they obligated to leave?
Also, I don't think they have observe the contract either and we had a dispute of the correct increase of the new rent. The original contract that grants the three year period says the annual rental increase shall be in line with CPI or between minimum of 2% and maximum 6%. Because the CPI is below 2% this year, i.e. 1.3%, the tenant says they can stay by just paying the minimum 2%. I didn't agree with this increase which is too low and asked for a 4% increase. Instead, their new rent paid a few days ago was only a 2% rise. Can I evict them on the basis that no renewal agreement was reached?
Final question, how to obtain the court order? Do I need to find a solicitor? Where could I find a solicitor who could help me with this?
Thank you very very much.