Agent says 'they don't do fixed term tenancy agreements, only Part 4'

[Mona G]

Hello,

We have been renting at the current address for over 7 years. Some facts to set the scene:

• we are tenants at the current address since April 2013;
• fixed term tenancy agreement signed every year;
• change of the ownership at the end of 2018 + change of an agency;
• early 2019 - the new agency offered a Part 4 Tenancy agreement - we refused - all parties signed the fixed term;
• early 2020 - agency offered 'the agreement of Conversion to Part IV Tenancy' - we refused - the renewal fixed term lease was supposed to be forwarded to us by the end of March 2020;
• Covid-19 happened;
• I have recently asked to finalize the paperwork - no reply to emails.

Since I haven't got any correspondence back, I called the agent directly. She couldn't understand why we wouldn't sign the Part 4 agreement and I tried to explain that in my opinion there is no need to sign it in the first place - we are covered by Part 4 regardless - and that the fixed term lease gives us better protection. She insisted that Part 4 would offer us more than one year protection and when I still insisted on finalizing the paperwork as agreed - she said that 'they don't do fixed term tenancy agreements, only Part 4'.

What does it mean to us, if the agency refuses the fixed term lease and we don't sign the 'agreement of conversion to Part IV Tenancy'?

Is there anything we can do or should do - I am worried that without the fixed term in place it is easier to kick us out of the apartment.

 

[Leo]

I don't believe they can be forced on continue issuing fixed term leases, but under the current legislation tenants are entitled to all the protections of a Part 4 tenancy after 6 months. They may only ask you to leave in accordance with the rules applying to Part 4 tenancies.

 

[_OkGo_]

Hi @Mona G , I am curious to know why you think that a fixed term lease gives you better protection?

Whether you (or they) sign a fixed or Part IV agreement makes no difference. You are fully protected already under Part IV which at the moment would give you ~6 month notice period. Maybe the agency have been a bit slow to realize that they are not obliged to offer and you are not obliged to sign recurring fixed term agreements. The Part IV agreement is probably just a formality to acknowledge this fact

If you are worried that they can kick you out easily, then you should know that they would still need to provide written notice with sufficient grounds to end your tenancy (RTB). In that event, if you do not believe the grounds are genuine, you should request that they provide a sworn affidavit stating the grounds. This would give you a very strong position if anything was amiss.

Also, for peace of mind, I would call Threshold as they will tell you exactly what you need to do.

 

[Mona G]

I don't believe they can be forced on continue issuing fixed term leases, but under the current legislation tenants are entitled to all the protections of a Part 4 tenancy after 6 months. They may only ask you to leave in accordance with the rules applying to Part 4 tenancies.

Thank you @Leo for your reply! But I guess this also means that we do not need to sign anything - including the 'agreement of conversion to part 4 tenancy' they are insisting we sign?

 

[Mona G]

Hi @Mona G , I am curious to know why you think that a fixed term lease gives you better protection?

Whether you (or they) sign a fixed or Part IV agreement makes no difference. You are fully protected already under Part IV which at the moment would give you ~6 month notice period. Maybe the agency have been a bit slow to realize that they are not obliged to offer and you are not obliged to sign recurring fixed term agreements. The Part IV agreement is probably just a formality to acknowledge this fact

If you are worried that they can kick you out easily, then you should know that they would still need to provide written notice with sufficient grounds to end your tenancy (RTB). In that event, if you do not believe the grounds are genuine, you should request that they provide a sworn affidavit stating the grounds. This would give you a very strong position if anything was amiss.

Also, for peace of mind, I would call Threshold as they will tell you exactly what you need to do.

Thank you @_OkGo_ for your reply!

In a fixed term lease, a Notice of Termination can be served for only 3 reasons which include break clause in the lease agreement (none in ours), both parties agree to this, and a breach of obligations by tenants.

In case of part 4 tenancy, there are a few more reasons such as: the property is not suited to the tenant’s needs; the landlord requires the property for personal or family use; the landlord wants to sell the property; significant refurbishment of the property is required, and the use of the property is changing.

Also, during the first 6 months of the Further Part 4 tenancy the landlord does not have to give any reason for termination and this leaves part 4 tenants vulnerable during this time.

This is why I believe that having a fixed term lease offers more protection to tenants - I understand part 4 runs alongside the lease regardless.

The above is based on the RTB website.

 

[Mona G]

If the agents decide not to issue the fixed term contract to us - is there any advantage in us signing the ‘agreement of conversion to part 4 tenancy’ they keep pushing us to sign? I understand that with part 4 tenancy there is no need to sign anything?