Monthly Rolling Tenancy Agreement A UK Landlord's Practical Guide

So, what exactly is a monthly rolling tenancy agreement? Think of it as a flexible, open-ended rental contract that ticks over automatically each month. You’ll often hear it called a periodic tenancy, and it usually kicks in right after an initial fixed-term contract comes to an end.

For both landlords and tenants, it offers a level of freedom you just don’t get with a standard Assured Shorthold Tenancy (AST).

Understanding The Monthly Rolling Tenancy

At its heart, a monthly rolling tenancy runs on a period-by-period basis – most of the time, that’s month-to-month. Unlike a fixed-term agreement that locks everyone in for, say, 12 months, a periodic tenancy just keeps going until either the landlord or the tenant serves the proper notice to end it. It’s this agility that’s becoming a huge deal in the UK rental scene.

This flexibility can be a massive advantage for landlords, especially if you're advertising spare rooms or managing a House in Multiple Occupation (HMO). It gives you the ability to make changes more quickly if a tenancy isn't working out or if your circumstances change and you need to sell.

For tenants, it’s a brilliant setup if they're not ready to commit long-term. Maybe they’re on a short-term work contract or just testing out a new area.

Statutory vs Contractual Periodic Tenancies

It’s really important to get your head around the two ways a rolling tenancy can start, as their legal footing is slightly different.

• Statutory Periodic Tenancy: This is the one you’ll come across most often. It’s created automatically by law (under the Housing Act 1988) when a fixed-term AST expires and the tenant simply stays put without signing a new contract. All the key terms from the original agreement—like the rent and tenant duties—just 'roll over' into the new month-to-month arrangement.
• Contractual Periodic Tenancy: This type is agreed right from the start. The initial tenancy agreement will have a specific clause saying that after the fixed term, the tenancy will become a rolling one. You can also agree with a tenant to start on a periodic basis from day one, skipping a fixed term altogether.

Here's the key takeaway for any landlord: unless you actively do something—either get a new fixed-term contract signed or serve the correct notice to regain possession—an expired AST will automatically become a statutory periodic tenancy. It’s the legal default. You don't have to lift a finger to make it happen.

Why This Matters Now

The entire rental landscape is shifting. With big legislative changes on the horizon that are set to make periodic tenancies the norm, understanding the ins and outs is no longer just good practice—it's about future-proofing your rental business.

Whether you're a homeowner renting out a room for the first time or a seasoned pro managing an HMO portfolio, getting this right is the first step to staying compliant and managing your properties well. It gives you the power to handle tenancy transitions smoothly, serve notices correctly, and keep your tenant relationships on solid ground.

A Major Overhaul Is Coming to the UK Rental Market

The way we rent in the UK is about to change, and it’s probably the biggest shake-up we’ve seen in a generation. A massive legislative shift is on the horizon that will completely reshape the landlord-tenant relationship, making the monthly rolling tenancy agreement the new normal for everyone.

If you’re a landlord who has built your entire process around the classic 12-month fixed-term contract, this is a moment to sit up and take notice. This isn’t just a small tweak to your paperwork; it's a fundamental change to how tenancies will work in England. Getting your head around this now isn’t just a good idea—it’s absolutely essential if you want to keep your rental business stable and profitable.

The End of an Era for Fixed-Term Contracts

The core of this reform is the move away from Assured Shorthold Tenancies (ASTs) that have a set end date. Soon, all standard tenancies will become ‘periodic’ from day one. In simple terms, they'll just roll month by month. While this is designed to give tenants more security and flexibility, it definitely brings new things for landlords to think about, whether you’re letting a spare room or managing a large HMO.

Getting to grips with these new rules is the first step. The landlords who get ahead of the curve will be in the best position to minimise empty periods and keep their tenants happy, which is going to be more important than ever.

This isn't some far-off idea; it's the confirmed direction of new legislation. The main takeaway is that tenancies won't have a fixed end date anymore. They'll just continue rolling until either you or the tenant gives the proper notice. This really puts the spotlight on good communication and management during the tenancy itself.

For landlords on platforms like Rooms For Let, who often rent to students and young professionals in busy cities like London or Manchester, this might sound a bit worrying. The immediate fear is that more flexibility for tenants means higher turnover for you. But if we look at what’s happened elsewhere, the reality could be quite different.

What the Law Says: A "Big Bang" Reform

A seismic change is coming. The Renters’ Rights Act 2025 is set to transform all assured shorthold tenancies (ASTs) into monthly rolling periodic tenancies starting from 1 May 2026. This affects millions of us. This 'Big Bang' reform scraps fixed-term agreements entirely, meaning even existing fixed-term contracts will convert into open-ended ones on that date.

That’s right—after the commencement date, every single one of the estimated 5.2 million privately rented households in England will be on a rolling contract. Many landlords fear this will lead to higher churn, as tenants can leave with just two months’ notice.

But let’s look north. Scotland switched to periodic tenancies as standard back in 2017, and the outcome was surprising. Instead of the chaos many predicted, the average tenancy length actually increased from 28 months to 42 months (that’s 3.5 years). It seems that when tenants feel secure and aren't constantly worried about being moved on, they’re more likely to put down roots and stay.

This shift does bring challenges, especially around rent. With UK private rents expected to average £1,410 a month by late 2025, landlords need to know the new rules for adjustments. Rent increases will require a Section 13 notice, and the notice period for this will double to two months. On top of that, you could face fines of up to £7,000 for leaving non-compliant fixed-term clauses in your old agreements.

Fixed-Term vs Monthly Rolling Tenancy: A Quick Comparison

To make sense of it all, it helps to see the two models side-by-side. Here’s a quick breakdown of the core differences between the old fixed-term model and the new rolling tenancy standard.

This table clearly shows the trade-offs. While fixed terms offered landlords predictable income, rolling tenancies shift the focus towards flexibility and strong in-tenancy relationships.

Preparing Your Rental Business for the Change

The message here is simple: get ready now. The move towards a monthly rolling tenancy agreement as the default isn't something to fear; it's a model that rewards landlords who focus on good property management and positive tenant relationships.

Here’s what you can start doing today:

• Update Your Agreements: Get familiar with the wording of a periodic tenancy. While your old fixed-term clauses will become unenforceable, using contracts that reflect the new reality will avoid any confusion and show you’re on top of your game.
• Double Down on Tenant Experience: The Scottish example proves it: happy tenants stay put. Investing in prompt maintenance, being responsive, and communicating clearly will be your best strategy for keeping good tenants and avoiding voids.
• Learn the New Rules: You need to get comfortable with the updated procedures for things like serving notice and increasing rent. The regulations and notice periods are changing, and staying compliant is not optional.

Ultimately, this is a move towards a more modern, flexible rental market. For landlords who prepare, it’s a real opportunity to build more stable, long-term relationships with tenants. To get more practical tips, dive deeper into our other guides on the Rooms For Let blog.

How To Transition To A Rolling Tenancy

So, the end of a fixed-term tenancy is on the horizon. What now? Knowing how to handle the move to a monthly rolling tenancy is a core skill for any landlord, but the good news is that it's usually a simple, natural process.

Let's break down the two main ways this happens, so you're confident no matter the situation.

The most common path is the one that requires you to do... well, nothing at all. When a fixed-term Assured Shorthold Tenancy (AST) ends, and your tenant stays put and continues to pay rent, the law takes over. Under the Housing Act 1988, the agreement automatically becomes a statutory periodic tenancy. It’s the legal default. Simple as that.

This flowchart gives you a quick visual of how a tenancy typically evolves in the UK.

As you can see, it's often a completely passive transition from a structured fixed-term deal to a more flexible rolling arrangement. It’s the path most tenancies follow.

Starting a Tenancy on a Rolling Basis

Of course, you don't have to wait for a fixed term to end. You can set up a tenancy on a rolling basis from day one, which is known as a contractual periodic tenancy.

This is a fantastic option if you’re renting to someone who needs that flexibility – perhaps they're in town for a short-term work contract or are just testing the waters in a new city. To make this happen, your tenancy agreement just needs to state clearly that it’s a periodic tenancy from the start.

Here’s the kind of clause you’d use:

Example Clause for a Contractual Periodic Tenancy: “This agreement creates a monthly periodic tenancy beginning on [Start Date]. The tenancy shall continue on a month-to-month basis until terminated by either party giving the appropriate written notice as required by law.”

That straightforward wording gets rid of any confusion and sets expectations from the get-go. Offering this kind of flexibility can attract a wider pool of potential tenants.

The key takeaway here is clarity. Whether a tenancy rolls over automatically or is contractual from the start, your agreement must reflect the reality. Remember, all the original terms—rent amount, tenant obligations, rules on pets—carry over into the periodic phase.

Communicating the Transition to Tenants

Even when a tenancy rolls over automatically, good communication is everything. Don't let the end of the fixed term sneak up and pass by in silence.

A quick, friendly email a couple of months before the fixed term is due to expire makes a world of difference. You can simply explain that you're happy for them to stay on a rolling monthly basis under the same terms. This little bit of proactive communication reassures your tenant, confirms their plans, and prevents any awkward misunderstandings.

Moving can be a stressful time, so pointing tenants towards a good moving house checklist can also be a helpful touch.

Paperwork and Practical Steps

Once you’re officially in a periodic tenancy, your legal responsibilities as a landlord haven't changed one bit. You still need to make sure all your compliance documents are up to date and that the tenant’s deposit is properly protected.

Here’s a quick checklist to run through:

• Review the Original Agreement: Dig it out and remind yourself of all the clauses. They all still apply.
• Check Deposit Protection: Your tenant’s deposit must remain protected in a government-approved scheme. You don’t need to re-protect it, but you do need to ensure the protection is continuous.
• Update Your Records: Make a note in your files or property management software that the tenancy is now periodic, noting the date it started.
• Communicate Clearly: Send that friendly confirmation email to your tenant. It’s a small gesture that builds a massive amount of goodwill.

Follow these simple steps and you’ll manage the transition to a monthly rolling tenancy with ease. It's a flexible model that, when managed properly, works brilliantly for everyone. If you're looking to advertise a room with these flexible terms, you can find quality tenants when you register as a landlord with Rooms For Let.

Handling Rent Increases and Notices The Right Way

The very flexibility that makes a monthly rolling tenancy so appealing also means there are specific rules for handling changes—especially when it comes to the rent or ending the tenancy. Getting these procedures right isn't just about being a good landlord; it's a legal must-do that protects you from messy disputes and ensures any notice you serve is actually valid.

As the UK rental market shifts, knowing these rules is more critical than ever. The old days of a quick chat or informal email about a rent increase are gone, replaced by a much more structured process designed to give both you and your tenant clarity and security.

The Correct Way to Increase Rent

For any periodic tenancy, you can't just verbally agree on a rent hike anymore. The only legally sound way to do it is by using a Section 13 notice, which is officially known as Form 4. This is the formal document you must use to propose a new rent that reflects the current market.

Be aware that upcoming reforms are tightening the rules here. You'll only be able to increase the rent once every 12 months, which helps provide stability for your tenant. More importantly, the notice period you have to give is doubling from one month to two. This means you need to plan ahead.

For example, if your tenant's rent is due on the 1st of each month and you want the increase to start from 1st August, you must make sure they receive the Section 13 notice no later than 31st May.

Navigating Tenant Challenges to Rent Increases

The new system gives tenants more power to challenge a rent increase they feel is unfair. If a tenant believes the new rent is above the going rate for similar properties in the area, they can take their case to the First-tier Tribunal.

A crucial change under the new rules is that the tribunal can only reduce your proposed rent or keep it the same. They will no longer have the power to increase it further, even if the market justifies a higher price. This removes the risk for tenants, making challenges far more likely.

This shift makes it absolutely vital to have your evidence in order before you even think about serving notice. Before you fill out that Section 13, do your homework and gather proof to back up your proposed figure. Good evidence includes:

• Listings of similar properties: Take screenshots of adverts on sites like Rooms For Let for comparable rooms or properties right in your neighbourhood.
• Local market knowledge: Make notes on recent rental trends and demand in your area. Is everything being snapped up in days?
• Property improvements: Have you recently renovated the bathroom or installed a new kitchen? Document any upgrades that add value.

Having this folder of evidence ready not only helps you set a fair price from the outset but also puts you in a rock-solid position if your tenant decides to challenge it.

Ending a Tenancy: The Landlord's Notice

When the time comes to regain possession of your property, the process for a rolling periodic tenancy usually involves a Section 21 notice.

Currently, a Section 21 requires you to give your tenant at least two months' written notice. It doesn't require you to give a reason for ending the tenancy, which is why it's often called a 'no-fault' eviction. However, for the notice to be valid, you must have all your ducks in a row—things like protecting the deposit correctly and providing all the necessary safety certificates are non-negotiable.

When the Tenant Gives Notice

The flexibility of a rolling contract works both ways. Tenants are generally required to give at least one month's written notice to end their tenancy.

This notice has to align with their rental period. So, if their tenancy runs from the 15th of the month to the 14th of the next, their notice must end on the 14th.

An Overlooked Financial Detail: Stamp Duty Land Tax

Here’s a detail that catches out many experienced landlords. If a periodic tenancy rolls over for several years, it can have some unexpected tax implications.

Under the Finance Act 2003, if a tenancy continues for long enough that the total, cumulative rent paid crosses the £125,000 Stamp Duty Land Tax (SDLT) threshold, it can trigger a reporting requirement and even a tax bill. This is most likely to affect high-rent properties. For instance, a London flat rented at £3,700 per month could hit this threshold in just over three years.

With the incoming monthly rolling tenancy regime from 1 May 2026, UK landlords face new rules for rent hikes, limiting them to once a year with a Section 13 notice and 2 months’ warning—double the current requirement. As UK rents average £1,410 monthly, tribunals have been known to reject increases over 8-10% that aren't backed by solid evidence. Many also get stung by an overlooked stamp duty rule: long-term periodic tenancies that exceed £125,000 in total rent trigger annual SDLT reporting. You can discover more insights about the Renters' Rights Act and stamp duty implications.

Your Essential Landlord Compliance Checklist

When a fixed-term tenancy smoothly transitions into a flexible monthly rolling tenancy agreement, it's easy to think your main legal hurdles are behind you. That's a dangerous assumption.

Your legal duties as a landlord don't just disappear. In fact, keeping everything in order is more critical than ever, because a simple compliance slip-up could completely invalidate a future notice to regain possession of your property.

Think of this as your go-to guide for staying on the right side of the law. These are the non-negotiables that protect you, your tenant, and your investment for the entire duration of a periodic tenancy.

Key Documentation and Deposit Protection

First things first, let's talk paperwork. All the crucial documents you issued at the start of the tenancy carry over into the rolling period. Their legal weight doesn't diminish one bit.

The tenant’s deposit is a big one. It must remain protected in one of the three government-approved schemes for the entire time the tenant lives in your property. You don't need to re-protect it when the tenancy becomes periodic, but you do need to ensure its protection never lapses.

You also have a duty to provide tenants with key information right at the beginning. If for any reason this was missed, you need to rectify it. Make sure they have received:

• The government's "How to Rent" guide (the version that was current when their original tenancy began).
• A copy of the property's Energy Performance Certificate (EPC).
• The Prescribed Information that details where their deposit is protected.

It's a simple but vital point: failing to provide these key documents at the tenancy’s outset can render a Section 21 notice invalid later on. This rule doesn't reset just because the tenancy is now rolling month-to-month.

Ongoing Safety and Property Standards

Property safety isn't a "one and done" task; it's an ongoing responsibility. For a rolling tenancy, this means keeping all your safety certificates up to date and tackling maintenance promptly.

Your core safety obligations are clear:

• Gas Safety: A Gas Safe registered engineer must perform an annual gas safety check. You must give a copy of the new certificate to your tenant within 28 days.
• Electrical Safety: An Electrical Installation Condition Report (EICR) is mandatory at least every five years. Tenants must be given a copy.
• Fire Safety: You must have at least one working smoke alarm on every storey used as living accommodation. A carbon monoxide alarm is also required in any room with a solid fuel appliance, like a wood burner. Crucially, you must check these alarms are working on day one of the tenancy.

Right to Rent Checks

The legal duty to check a tenant's immigration status—the Right to Rent check—doesn't end when the fixed term does. This is especially important if your tenant has a time-limited right to be in the UK.

You are legally required to conduct a follow-up check just before their current right to rent expires, or 12 months after the previous check, whichever is later. Forgetting to do this can result in some pretty hefty penalties.

Landlord Compliance Checklist for Rolling Tenancies

To keep everything straight, it helps to have a clear checklist. The table below outlines your key obligations and when they need to be addressed. Sticking to this schedule will help you avoid any nasty surprises.

Staying on top of these items is the hallmark of a professional landlord and is your best protection against legal complications down the line.

Record Keeping and Communication

In the world of lettings, diligent record-keeping is your best friend. Keep a clear, organised file for each tenancy, whether it's in a filing cabinet or a folder on your laptop. This file is your evidence locker and should hold everything from the signed tenancy agreement and Right to Rent documents to every safety certificate and email exchange.

On that note, never underestimate the power of good communication. When a gas safety check is due, give your tenant plenty of written notice. This isn't just about fulfilling the legal requirement of 24 hours' notice; it’s about fostering a respectful and professional relationship. A simple email creating a clear paper trail can prevent countless headaches and misunderstandings.

Common Questions About Rolling Tenancies

Knowing the theory behind monthly rolling tenancies is one thing, but dealing with real-world landlord scenarios is another. Questions always come up.

We’ve gathered the most common queries we hear from landlords just like you. Think of this as your go-to guide for navigating those everyday "what if?" moments with confidence.

Does The Original Tenancy Agreement Still Apply?

Yes, absolutely. This is probably the most critical point to get your head around.

When a fixed-term Assured Shorthold Tenancy (AST) ends and flips into a statutory periodic tenancy, the law ensures all the original terms carry over. Every single clause—from the rent payment date and rules on pets to tenant maintenance duties—remains in full force.

The only thing that actually changes is the tenancy's end date. Instead of a fixed deadline, it simply "rolls" from one month to the next. This continuity is a key legal safeguard designed to protect both you and your tenant, providing stability without the faff of signing a whole new contract.

Can I Refuse To Let A Tenancy Become A Monthly Rolling One?

In short, no. You can't unilaterally stop a tenancy from becoming a statutory periodic one if the tenant wants to stay and you've let the fixed term expire. If your tenant is still in the property after their fixed term ends and they keep paying rent, the switch happens automatically under the Housing Act 1988. At that point, it’s out of your hands.

Your control comes before the fixed term ends. To prevent a tenancy from rolling over, you have two clear options:

• Sign a New Fixed-Term Agreement: You and your tenant can agree to another fixed term before the current one runs out. This creates a new contract and a new end date.
• Serve a Valid Section 21 Notice: You must give the tenant at least two months' warning by serving a correctly timed Section 21 notice, which must end on the last day of the fixed term. This legally informs them you require the property back.

If you don't take one of these steps, the tenancy will roll over by default.

What Happens To The Tenancy Deposit On A Rolling Contract?

The tenancy deposit stays protected, and your legal duties don’t change. As long as the tenancy continues with the same tenants at the same property, the deposit can remain securely lodged in the same government-approved scheme you originally used.

You don't need to re-protect it or issue new Prescribed Information when the agreement becomes periodic. The protection just rolls over along with the tenancy.

However, be aware that if you both decide to sign a completely new AST (known as a 'replacement' tenancy), it’s smart to check your deposit scheme's rules. Some might require you to re-issue the paperwork just to be safe.

The key principle here is continuity. The law doesn't see a statutory periodic tenancy as a new agreement, but as a seamless continuation of the old one. This makes your life easier when it comes to deposit protection.

How Are A Tenant's Rights Affected On A Rolling Agreement?

A tenant's fundamental rights are fully preserved when their contract becomes a monthly rolling one. They are still protected from unlawful eviction and have the right to live in a safe, well-maintained property that meets all legal standards.

The main difference is the newfound flexibility for both of you. The tenant usually gains the ability to give just one month's notice to leave, giving them more freedom. For you, the landlord, it means you can serve a two-month Section 21 notice (subject to current and future legislation) without being locked into a long fixed term.

All other rights and obligations, for both you and your tenant, carry over directly from the original AST.

If you have more specific questions or need advice tailored to your situation, our team is always here to help. Don't hesitate to learn more by getting in touch with us at Rooms For Let.

At Rooms For Let, we've been connecting landlords with quality tenants since 2000, making it easier to find the perfect match for your spare room or HMO. Advertise your room for free and reduce your vacancy periods by visiting us at https://www.roomsforlet.co.uk.