There are two types of tenancy agreements that a tenant can enter into. The first is a fixed- term agreement and secondly, a periodic tenancy agreement.

A fixed-term tenancy has a definite commencement date and expiry date.  A periodic agreement has a commencement date but no expiry date.

The preferred type of tenancy is a fixed term agreement where a tenant will enter into a six or 12 month agreement to give both parties security of tenancy and income for a set period of time.

Tenancy agreements do not necessarily have to be for a 6 or 12 month term.  Sometimes it is smart practice to enter into a varied term (i.e. five, eight or 10 month tenancy) if the property has a pool to avoid the property becoming available in the middle of winter.  A varied term can also be entered into to avoid the property becoming available during a quiet time of the year when it can become harder to find a tenant.

While fixed-term tenancies are generally the preferred type of agreement for both tenants and landlords, sometimes it can be beneficial to enter into a periodic tenancy.  You can enter into a periodic tenancy at the commencement of the tenancy by stating a move in date with no expiry date, or if a fixed-term agreement is not renewed for a further term, it will automatically revert to a periodic tenancy.

Periodic tenancies can give both parties flexibility in giving notice as there is no expiry date and notice to vacate the property can be given at any time in accordance with a periodic tenancy notice period.  This flexibility is usually requested if the landlord wishes to sell the property or the tenant is looking to purchase a property

 

Melanie Dennis

If interested in learning more about this update please contact me today!

As Domain Property Advocates continues to grow I will continue to provide superior service to those choosing to use property as their investment. It is an important choice of who to choose as the one responsible to look after your property. You can be sure that Domain Property Advocates will always strive to be the best.

 

This entry was posted on Wednesday, April 23rd, 2008 at 11:21 pm and is filed under Property Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.