Fixed Term Agreements

A fixed-term tenancy agreement specifies a start and finish date, and the minimum length of time you agree to stay in the property. Most fixed-term leases are for six or 12 months, but they can be for any time. A fixed-term gives you more certainty and security than a periodic lease. Rent can only be increased during the fixed-term if the tenancy agreement stipulates the amount of the increase or the method of calculating the increase. A fixed-term tenancy agreement may also state whether you can automatically renew the tenancy at the end of the original period and/or provide for renewal of another fixed term.

Periodic Term Agreements

A periodic tenancy agreement can run for an indefinite amount of time; there is no set finishing date.  This type of tenancy can be written or verbal. In this instance, rent can be payable weekly, fortnightly, monthly or any other period agreed to by the landlord or the property manager.

This type of tenancy provides greater flexibility if you or the property owner’s circumstances change and either of you need to end the tenancy. A periodic tenancy continues on with the same terms and conditions until either you or the landlord or property manager give the appropriate notice to end it.

Is there any set term for a lease agreement?

There’s no fixed amount that you could do that agreement and you can do anywhere from three months lease to a 99-year lease. Not that you would, but that is an option! Sometimes we work with the tenants to suit them eg, we have moved people away from being due for renewal at Christmas time. That might end up being a 13 monthly so maybe it was a seven month or eight monthly so that it was not in a period where the owner would not want that list to expire.

What about if the owner really wants the tenant to be on a fixed-term agreement but the tenant doesn’t want to be?

If the owner wants to have the tenant on a fixed term, but the tenant doesn’t want to be on a fixed-term, there is… we can ask the tenant, but as far as forcing a tenant to sign a lease, we aren’t able to do that. If it was that you wanted someone in a fixed term, then perhaps it’s better to issue a notice to the other tenant that wouldn’t re-sign and to get a new tenant in, although that is an expensive process.

If you have any other questions, please email us at [email protected]

 

Hi, I’m Roseanne Gaut
And I’m Monique Gaut
And we’re from Dowling Maitland.
 
Monique could you just please explain if there is an advantage to being in a fixed term agreement.
 
Alright, so there are advantages for both tenants and owners for being in fixed term agreements.
Mostly which that, that term is as it says fixed, so you’ve got a guaranteed amount of rent for that certain period.
And for tenants, you've got a guaranteed amount of time that you're in that house where the owner can’t give you notice to vacate except for it was for rent arrears.
 
Okay. What about any advantages to being in a periodic list agreement?
 
Advantages for being on a periodic agreement would basically be if you as the landlord were considering selling the property and wanted vacant possession, I probably wouldn't renew the lease. If I was a tenant. And I was thinking about moving, I would probably not renew the lease there either.
 
So, there's probably more security in having a fixed term agreement.
 
There's definitely more security in having a fixed term agreement.
 
Yeah, excellent.
 
Is there any set term, you know, for lease agreement, like six months or 12 months?
 
There's no fixed amount that you could do that agreement and you can do anywhere from three months lease to 99-year lease?
Not that you would, but that is an option as well.
So, sometimes we have moved people away from being due for renewal at Christmas time.
So that might have been a 13 monthly so maybe it was a seven month or eight monthly so that it was not in a period where the owner would not want that list to expire.
 
Okay. What about if the owner really wants the tenant to be on a fixed term agreement but the tenant doesn't want to be?
 
If the owner wants to have the tenant on a fixed term, but the tenant doesn't want to be on a fixed term, there is… we can ask the tenant, but as far as forcing a tenant to sign a lease, we aren't able to do that.
And if it was that you wanted someone in a fixed term, then perhaps it's better to issue a notice to the other tenant that wouldn't re-sign and to get a new tenant in, although that is an expensive process.
 
Okay, thank you.
That's, that's good advice.
If you have any other questions, please email us at [email protected]









 








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