Tenants ‘jumping the gun’ on surrender agreements, lettings boss warns
Greg Tsuman of Martyn Gerrard says some renters are initiating 'surrender agreements' before the Renters' Rights Bill becomes law.
Some tenants are trying to leave rentals under ‘surrender agreements’ because they mistakenly believe the Renters’ Rights Bill is already law.
That’s the claim from leading lettings boss Greg Tsuman (main picture), who is a Propertymark Past President and the lettings boss at Martyn Gerrard.
The bill will allow renters to give two months’ notice to quit a tenancy, and while it is designed to provide tenants with more rights, Tsuman warns that the Bill could lead to more landlords quitting the PRS.
This could then push more landlords out of the private rental sector.”
“Because the Renters’ Rights Bill means that any tenant can leave a fixed-term tenancy with two months’ notice, this may give tenants more freedom of movement without any fees, but it will also increase landlords’ costs,” he says.
“This could then push more landlords out of the private rental sector because it is yet another cost they would need to consider, alongside how much rent they are going to charge.
“This could then lead to fewer properties for tenants to rent.”
Waive rights
Tsuman urges landlords to consider early surrender agreements carefully before the Bill becomes law, and to avoid agreeing to them unless there are exceptional circumstances.
“In the meantime, there must be a valid reason why landlords may want to waive their rights before they lose their rights.
“For example, if a landlord is selling in the future, it may suit their plans to agree to an early surrender agreement,” he says.
Apologies if i am missing something here but i thought the Renters reform Bill intended to abolish creating fixed term tenancies and turn all existing fixed term tenancies into periodic when it becomes the law. Under the new periodic tenancy regime a tenant will need to give 2 months notice to quit. Why then are we discussing surrender agreements they will be unnecessary.
We have a history of long term tenants and those I have spoken with feel the fact there is no fixed term tenancy far outweighs any advantage of being able to give notice at any time. I have to agree with them tenants want security and this does nothing to give the feeling that they have security for a set period.
Certainly in my area I do not share the doom and gloom being talked about but it is this constant talk about landlords leaving that is actually making many think they should leave the PRS.