At first glance, fixed-term contracts seem like common sense.
They offer “security,” right? A guaranteed 12 months of rent, no surprises, no instability.

That’s how most letting agents pitch it—and it sounds reasonable. But what they don’t tell you is this:

Fixed-term contracts are often more about securing their income than protecting yours.

Let’s break it down.

What’s a Fixed-Term Contract, Anyway?

A fixed-term AST (Assured Shorthold Tenancy) is a rental agreement that lasts for a set period - typically 6 or 12 months. During that time, the tenant can’t easily leave, and the landlord can’t easily evict, except under specific grounds.

Letting agents push renewals instead of letting tenancies roll over - because every new fixed term is a chance to charge you again

Why?

Because every new fixed term is a fresh opportunity to charge you.

Follow the Money: Renewal = Revenue

Here’s how the agent business model works:

• You pay 10–15%+VAT of the monthly rent as a management fee.
• On top of that, many agents charge an additional renewal fee (anywhere from £100 to £250) just to draft a new agreement, even if the tenant is staying exactly the same.
• Some agents also reset their commission timer on renewal, especially for upfront fee arrangements.

That means:

• Keeping a tenant on a rolling month-to-month contract? Bad for them.
• Forcing a renewal? Easy money.

It’s not about your risk. It’s about their margin.

Why Rolling Tenancies Might Actually Work Better for You

Letting agents love to make rolling tenancies sound scary:

“What if they leave suddenly?”
“You won’t have rent security!”
“You could be left with a void!”

But here’s what they leave out:

• Notice periods still apply. Under a rolling tenancy, the tenant must usually give at least one full month’s notice. It’s not like they disappear overnight. In F.estate you can increase this to a maximum of 3 months notice.
• You retain flexibility. If your situation changes, you’re not locked into a rigid 12-month structure.
• Tenants often stay longer. Without the artificial pressure of an expiry date, many tenants continue month-to-month for years.
• Avoidance of renewal disputes. Tenants resent being forced into renewals with higher rent. A rolling agreement can preserve goodwill.

With the tightening of eviction laws, it offers you the most amount of flexibility in a more landlord-unfriendly market.

And if you're using smart tools (like F.estate), the risks of a rolling setup - like rent tracking, notice management - are handled for you.

The Math Doesn’t Lie

Let’s say:

• You rent a flat for £1,800/month.
• Your agent takes 12% + VAT = ~£260/month.
• At the 12-month mark, they charge a £200 renewal fee.

That’s £3,320 per year - plus £200 just to press copy+paste on a Word doc.

If the tenant continues on a rolling basis and you manage the property yourself (or through F.estate’s platform), you might be looking at:

• ~£650/year in platform fees
• £0 renewal charges
• Direct, real-time control over rent, repairs, and tenant messaging

Same tenant. Same flat. Thousands saved.

When Fixed Terms Do Make Sense

To be fair, fixed-term agreements aren’t always bad.

You might want one if:

• You’re renting a student property with defined cycles
• You plan to sell or move into the property at a specific date
• You’re taking on a tenant you don’t yet fully trust

But for most long-term rentals, the better question is:
Why are you being locked in, and who benefits from it?

Letting Agents Won’t Tell You This, But We Will

At F.estate, you can offer tenants both fixed and rolling contracts - without hidden fees, admin upsells, or forced renewals.

We believe in flexibility for both sides.
You get full visibility into upcoming expiries, automated notices, and digital lease tools built for real life.

If you’re paying someone to keep you locked in, maybe it’s time to break out.

👉 Ready to take control? Create your first lease on F.estate in under 5 minutes.

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