Two Tenancy Agreements

When it comes to renting a property, a tenancy agreement is a crucial document that outlines the terms and conditions of the agreement between the tenant and landlord. However, there are specific types of tenancy agreements that renters need to understand. In this article, we will discuss the difference between two tenancy agreements: fixed-term tenancy and periodic tenancy.

Fixed-term Tenancy Agreement

A fixed-term tenancy agreement is a rental agreement that has a specific end date. For instance, if a landlord offers a 12-month lease, it means that the rental agreement ends after 12 months, and the tenant will be required to move out from the rented premises by the end of that period. Fixed-term tenancy agreements are commonly used for properties that are rented out for long periods.

Under a fixed-term tenancy agreement, both parties are bound to the terms and conditions of the agreement for the entire duration of the lease. The rent amount, payment schedule, and any other provisions listed in the agreement cannot be changed unless both parties agree to the changes.

Periodic Tenancy Agreement

A periodic tenancy agreement is a rental agreement that does not have a specific end date. It will roll over after the initial lease period has ended, and rent payments will continue to be made on a periodic basis (usually monthly). In other words, a periodic tenancy agreement allows the tenant to rent the property on an ongoing basis until either the tenant or the landlord decides to terminate the agreement.

Under a periodic tenancy agreement, either the landlord or the tenant can terminate the agreement by giving the other party adequate notice. The notice period varies, depending on the state or territory where the property is located and the duration of the rental agreement.

Key Differences between Fixed-term and Periodic Tenancy Agreements

Both fixed-term and periodic tenancy agreements have their pros and cons. Fixed-term agreements offer stability and certainty for both tenants and landlords. It allows tenants to plan their finances and stay in the property for a defined period. On the other hand, periodic tenancy agreements offer more flexibility to tenants, allowing them to move out with shorter notice periods. It also gives landlords the option to adjust the rental amount or terms of the lease more easily.

In summary, the biggest difference between fixed-term and periodic tenancy agreements is their end date. A fixed-term tenancy agreement has a specific end date, while a periodic tenancy agreement continues until one party decides to terminate it. Both types of tenancy agreements have their advantages and disadvantages, so it`s essential to understand them before signing any rental agreement. As a renter, it`s always a good idea to read and understand the terms and conditions of the tenancy agreement carefully before signing anything.