As someone who is considering renting a property, it is essential to understand the different types of tenancies available. One of the most common types of tenancies is a periodic tenancy. There are two types of periodic tenancies: contractual and statutory.
A contractual periodic tenancy is a type of tenancy that is created through a written agreement between the landlord and the tenant. This type of tenancy is usually created when the initial fixed-term tenancy expires, and both parties agree to continue the tenancy on a periodic basis. The periodic tenancy can be monthly, weekly, or even daily, depending on the terms of the agreement.
In a contractual periodic tenancy, both parties are bound by the terms of the original tenancy agreement, and any amendments that were made when the tenancy became periodic. The tenant has the right to stay in the property for as long as they continue to pay rent on time and adhere to the terms of the agreement. The landlord can also terminate the tenancy by giving the required notice as stipulated in the agreement.
On the other hand, a statutory periodic tenancy is a tenancy that is created by operation of law when a fixed-term tenancy expires. Unlike a contractual periodic tenancy, a statutory periodic tenancy is not created through a written agreement between the landlord and the tenant. However, the terms of the original tenancy agreement still apply, and the tenant has the same rights as they did during the fixed term, such as the right to quiet enjoyment of the property.
In a statutory periodic tenancy, the landlord cannot increase the rent without giving the appropriate notice period as stipulated by the law. The tenant can also terminate the tenancy by giving the required notice as stipulated by law.
In summary, a contractual periodic tenancy is created through a written agreement between the tenant and the landlord, while a statutory periodic tenancy is created by law at the end of a fixed-term tenancy. Both tenancies have their advantages and disadvantages, and it is vital to understand the differences between them to make an informed decision when renting a property. It is advisable to consult with a legal professional or a letting agent to get a better understanding of the tenancy agreements and the applicable laws in your specific location.