Most Residential Tenancy Agreements start with a Fixed Term. Fixed Terms can vary from 6 months up to 5 years. May Tenants & Landlords like to start with a 12-month lease.
F.A.Q’s
What happens when the Fixed Term expires?
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- The name of the Agreement will change from fixed term to Periodic or a Continuing Agreement.
Are all terms and conditions the same as those in the Fixed Term Agreement?
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- Yes, except the notice period to end the Agreement changes. The Tenant needs to give 21 days’ notice, where the Landlord needs to give 90 days including a valid reason to end the Agreement. With a Fixed term the tenant would need to give 14 days and the landlord 30 days.
Can the Tenant be forced to sign another Fixed Term?
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- No, it is good practice for the Agent to offer Tenants a new Fixed Term (with the Landlords approval).
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- Sometimes, however, the tenant may not want to commit to another Fixed Term. They may be planning on buying their own home, relocating to another city. There may also be uncertainty about their employment or co-tenants planning to vacate.
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- Similarly, the tenant might want a new fixed term and the Landlord doesn’t. The Landlord may be planning on selling, moving in themselves or a family member to move in.
What option does a Landlord have if they insist on a new lease and the Tenant doesn’t?
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- Terminating the fixed term lease may be the only option. Sometimes the Agent can reach a compromise for both parties.
Quite often as well, both parties are happy for the Agreement to roll over onto a periodic Agreement. In this situation as mentioned earlier, the tenant will need to give 21 days’ notice to end the Agreement and the Landlord will need to give 90 days’ notice with a valid reason given.
Do you have any questions about anything mentioned above, please don’t hesitate to reach out to Steve Arnold.
Steve is the Principal here at Arnold Property and has over 37 years’ experience in residential Property Management.
0419 947 980 or (02) 4969 2600 | mail@arnoldproperty.com.au
