A periodic lease is a month-to-month rental agreement that continues after the end of the fixed term agreement, until either the tenant or landlord of the rental property decides to terminate it. The rules around the minimum notice period required for ending a periodic tenancy vary from state to state, so its important to check your relevant residential tenancy agreement.
One of the benefits of a periodic agreement over a fixed term tenancy agreement is the flexibility it provides for both tenants and landlords. This type of lease can be useful for tenants who are unsure about their long-term plans or for landlords who want to keep their options open.
However, periodic agreements can also come with some drawbacks. For example, tenants may feel uncertain about their housing situation and may not be able to plan for the future if they are on a month-to-month lease. Additionally, landlords may have difficulty finding new tenants if they need to fill a vacancy quickly. Overall, it is important for both parties to carefully consider the pros and cons of different tenancy agreements before entering into one.
What is a Periodic Lease NSW?
A periodic lease, also known as a month-to-month lease, is a type of tenancy agreement that continues on a rolling basis until either the tenant or landlord terminates it by giving notice. This type of lease is commonly used when the tenant and landlord agree to continue the tenancy beyond the end of a fixed term lease.
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Do You Need to Renew a Periodic Lease?
No, you do not need to renew a periodic lease, only fixed term agreements need to be renewed (if that is the preference of the tenants or the landlords). A periodic lease automatically renews on a month-to-month basis until either the landlord or tenant gives notice to terminate the lease. However, it is important to note that the terms and conditions of the lease can change with each renewal. For example, the rent may increase or the notice period may change.
Key Features of a Periodic Lease
Here are some key features of a periodic lease:
- Flexibility: A periodic lease offers flexibility to both the tenant and landlord. The tenant can terminate the lease with a short notice period, and the landlord can regain possession of the property with a longer notice period.
- Notice Period: The notice period for terminating a periodic lease varies depending on the state or territory. In New South Wales (NSW), tenants must give at least 21 days’ notice to end the lease, while landlords must give at least 90 days’ notice.
- Rent Increases: In NSW, the landlord can increase the rent once in a 12 month period with a 60 days notice period required.
- Security of Tenure: A periodic lease provides less security of tenure than a fixed-term lease. The landlord can terminate the lease with proper notice, and the tenant may be required to vacate the property at short notice.
Legislation Governing Periodic Leases in NSW
Rights and Obligations of Parties
Under the Residential Tenancies Act 2010, both landlords and tenants have rights and obligations when it comes to periodic leases. Some of the key rights and obligations are:
Landlord’s Rights and Obligations
- The landlord has the right to receive rent payments from the tenant on time.
- The landlord has the right to enter the property for certain reasons, such as to carry out repairs or inspections, but they must give the tenant reasonable notice.
- The landlord has the obligation to keep the property in a reasonable state of repair and ensure it meets minimum safety standards.
- The landlord has the obligation to provide the tenant with a copy of the standard residential tenancy agreement before the tenancy starts.
Tenant’s Rights and Obligations
- The tenant has the right to quiet enjoyment of the property, which means the landlord cannot interfere with their use of the property.
- The tenant has the right to have repairs carried out in a reasonable timeframe and to have the property maintained in a reasonable state of repair.
- The tenant has the obligation to pay rent on time and to keep the property clean and undamaged.
- The tenant has the obligation to give the landlord notice when they want to end the tenancy.
Termination of a Periodic Lease NSW
A periodic lease is an agreement between a landlord and tenant that has no fixed end date. It continues until either party gives notice to terminate the lease. In NSW, there are specific rules regarding the termination of a periodic lease.
According to the Residential Tenancies Act 2010 in NSW, tenants and landlords must provide written notice to terminate a periodic lease. The notice period depends on who is giving the notice and the reason for termination.
Tenant’s Notice Period
If a tenant wants to terminate a periodic lease, they must give at least 21 days’ notice. The notice must specify a termination date that is not earlier than 21 days after the day on which the notice is given.
Landlord’s Notice Period
If a landlord wants to terminate a periodic lease, they must give at least 90 days’ notice. The notice must specify a termination date that is not earlier than 90 days after the day on which the notice is given. However, in the case of an employee or caretaker residential tenancy agreement, the termination notice period is 14 days.
Grounds for Termination
There are specific grounds for termination of a periodic lease in NSW. These grounds include:
- Breach of the lease agreement by the tenant
- Non-payment of rent by the tenant
- The landlord requires the property for their own use or for a family member’s use
- The landlord wants to sell the property
- The property is to be demolished or renovated
- The landlord has received a notice from a government authority that the property is to be acquired or resumed
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