pros and cons of periodic lease
- Thread starter eggnog
- Start date
Check that your landlord insurance covers periodic leases.
Check that you are not in an area with fluctuating demand and may have a vacancy at an undesirable time - i.e., near the beach in winter.
Check termination notice periods - from memory I think it is 60 days for you, 14 days for them.
Marg
Check that you are not in an area with fluctuating demand and may have a vacancy at an undesirable time - i.e., near the beach in winter.
Check termination notice periods - from memory I think it is 60 days for you, 14 days for them.
Marg
Yes that is my understanding as well. Because of this I always look to lock a new tenant into a fixed term lease or renew when the existing fixed term lease is due to expire.
Hope this helps.
Just started looking into the insurance side of things and this is definitely a question that is raised against the length of the lease. Think renewing it on another 12 month basis in the last month of the lease is the best option.
Leases etc
Not sure if this applies in "what" states, but we're under the impression that once a tenant has had a 12 month lease in an IP, they then have a legal right to monthly tenancy if they so desire .i.e. they don't have to sign a new 6/12 month lease.
Have I got that wrong? Our IPs are all in Vic & Qld.
In any case, we've never had any serious problems with this method, but that doesn't necessarily mean it's best.
LL
Not sure if this applies in "what" states, but we're under the impression that once a tenant has had a 12 month lease in an IP, they then have a legal right to monthly tenancy if they so desire .i.e. they don't have to sign a new 6/12 month lease.
Have I got that wrong? Our IPs are all in Vic & Qld.
In any case, we've never had any serious problems with this method, but that doesn't necessarily mean it's best.
LL
Definitely the case in Vic - a tenant does NOT have to sign up on a new lease.
Cheers,
The Y-man
In my capacity as a landlord, it doesn't really worry me. I've had tenants stay for years as a periodic tenant. If the rental market is tight then a periodic tenancy is fine.
You will probably find as a landlord that you can give notice for the tenant to vacate at the end of the fixed term. In NSW it's 14 days notice.
I must say, in my capacity as a tenant earlier this year, I got a letter from the managing agent saying I had two choices accept a new 6 month lease or give them notice to vacate. I chose to do neither. They did not give me notice to vacate so it carried on as a periodic tenancy. My reasoning was two fold - first the house was unsatisfactory over summer due to lack of cooling and poor cross ventilation so I didn't want to sign again for 6 months; second we were looking to purchase which we did. If they had given us notice to vacate we would have found somewhere else to rent.
You will probably find as a landlord that you can give notice for the tenant to vacate at the end of the fixed term. In NSW it's 14 days notice.
I must say, in my capacity as a tenant earlier this year, I got a letter from the managing agent saying I had two choices accept a new 6 month lease or give them notice to vacate. I chose to do neither. They did not give me notice to vacate so it carried on as a periodic tenancy. My reasoning was two fold - first the house was unsatisfactory over summer due to lack of cooling and poor cross ventilation so I didn't want to sign again for 6 months; second we were looking to purchase which we did. If they had given us notice to vacate we would have found somewhere else to rent.
In SA.
Periodic = 60days notice to raise rent, terminate lease.
We tried to keep previous tenants on their toes by telling them we would go to periodic when their lease ended (they were always good near the end of the lease), we could then move them on easier. But the better solution was a 3 mth lease, we had more control. If they wanted security they had to play the game.
Bushy
Periodic = 60days notice to raise rent, terminate lease.
We tried to keep previous tenants on their toes by telling them we would go to periodic when their lease ended (they were always good near the end of the lease), we could then move them on easier. But the better solution was a 3 mth lease, we had more control. If they wanted security they had to play the game.
Bushy
