Whether you’re a landlord or a tenant, it’s important to know the differences between a periodic tenancy and a fixed-term tenancy so you can choose the one that suits you best.
A periodic tenancy agreement has no end date. It continues until either the tenant or the landlord gives written notice to end it.
A fixed-term tenancy agreement lasts for a set amount of time – eg, one year. There is no maximum length for a fixed-term tenancy. You must include the length on the tenancy agreement.
You can’t give notice to end a fixed-term tenancy early. You should make sure a fixed-term is right for you before you sign the agreement.
Once the term ends, the tenancy will become periodic. If you don’t want this to happen, you’ll need to give notice in writing at least 21 days before the term ends.
Short fixed-term tenancy
If the fixed-term is 90 days or less, it is a short fixed-term tenancy. It does not become periodic when the term ends. A short fixed-term tenancy can’t be used as a trial period.
If the landlord and tenant agree in writing that the tenancy won’t extend beyond 90 days, the following won’t apply:
- rules about market rent
- rules about increasing the rent after making improvements to the property
- rules on giving notice to end the tenancy.
If the tenancy does extend beyond 90 days, all rules will apply as usual.