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Residential tenancy agreements
What is the difference? Before entering an agreement with a tenant, you must decide which terms suit your needs: Fixed or periodic.
Fixed Periodic
A fixed tenancy is a fixed term with a start and an end date, usually over a period of 6 or 12 months.
The end date indicates the minimum length of time the tenant agrees to stay in the property.
Fixed lease considerations:
• Suited to landlords and tenants seeking peace of mind and security.
• Tenants may contribute towards costs of re-letting should they choose to move out earlier than agreed.
• Once a fixed term ends, the tenancy will automatically become periodic, unless the correct notice has been given. A periodic tenancy offers flexibility with no fixed end date. It simply means the lease can carry on indefinitely until the tenant is given a minimum of 90 days’ notice in writing to terminate for selfoccupancy.
Or, in reverse, the tenant gives you a minimum of 28 days’ notice (or one calendar month if rent is paid calendar monthly) to vacate the property.
Periodic lease considerations:
• Tenants can terminate at any time (subject to the 28 days’ notice period), resulting in an unforeseen vacancy, which may occur during a slow letting time of year.
• Tenants do not have to contribute to any re-letting or marketing costs.
• May be beneficial for landlords looking to sell, renovate or demolish in the future.
