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As you enter a rental agreement, you’ll encounter two types of tenancies: fixed-term and periodic.

It’s crucial to comprehend the differences between these lease agreements to make a well-informed decision.

What is a Fixed-Term Tenancy?

A fixed-term tenancy agreement is a lease that sets a specific start and end date and the minimum length of time you will stay in the property. These leases are often for six or twelve months but can vary in duration.

Opting for a fixed-term agreement provides more stability and assurance than a periodic lease.

The rent can only be raised throughout the fixed term if the tenancy agreement explicitly states the amount or outlines how the increase will be calculated. The agreement may also allow for automatic renewal or the option to enter another fixed-term period.

Key Points of a Fixed-Term Tenancy:

  1. Start and end dates are set
  2. Minimum stay length
  3. Rent increase only as agreed
  4. Possible automatic renewal/extension

What is a Periodic Tenancy?

Unlike a fixed-term lease, a periodic tenancy agreement has no specific end date. It can continue until you or the landlord/property manager decide to terminate the agreement by giving the appropriate notice. This agreement can either be written or verbal.

The rent payments for a periodic tenancy can be made on a weekly, fortnightly, monthly, or any other mutually agreed period as decided by the landlord or property manager.

The best thing about a periodic lease is that it’s flexible, which means you or the property owner can end the tenancy if there are any changes in circumstances.

Key Points of a Periodic Tenancy:

  1. No fixed end date.
  2. Flexible termination option
  3. Agreed rent payment frequency
  4. Same terms until proper notice given

Can my real estate agent deny a periodic lease?

While landlords or property managers generally have the discretion to offer either a fixed-term or periodic lease, they may not do so based on discriminatory factors protected by law, such as race, gender, or religion. However, there are certain situations where the property owner’s requirements or preferences may influence their decision to offer a periodic lease.

Remember that tenancy laws and regulations can vary depending on your location. It is recommended to consult with local tenancy authorities or seek legal advice to understand your rights and responsibilities as a tenant.

Knowing whether you want a fixed-term or periodic tenancy is key when renting. Fixed-term means stability, while periodic is all about flexibility. Read and understand your agreement before signing and get advice if needed. Be in the know and make the right choice for you as a tenant.