Rolling Onto Periodic – Understand The Benefits, Potential Downsides And Legal Obligations

Fixed term tenancies, if neither party initiates to end or renew will automatically become periodic tenancies. Even if renewing your tenant may want prefer a periodic tenancy.

Assuming they’re a good tenant — they pay rent on time, keep the place clean, don’t host loud parties — you might be tempted to accommodate the request. But before you do, be sure to understand the relevant landlord-tenant laws.

Whether by design or default – landlords will no doubt be part of a periodic tenancy at some stage or other.

Assuming you have a good tenant — they pay rent on time, keep the place clean, don’t host loud parties — you might be tempted to run with a periodic tenancy. But before you do, be sure to understand the relevant  laws.

A periodic tenancy is one that continues until either the tenant or the landlord gives written notice to end it.

It is assumed by law that periodic tenancies will be long term, ie 1 year +

This is not often the understanding on landlords or tenants who often use periodic tenancies for short term leases where either party knows something is coming up, such as construction work but does not have a firm date yet. As long as both parties are aware of this, there is no problem using a periodic tenancy for a short term in such situations.

Notice periods

A tenant must give at least 21 days’ written notice to end the tenancy, unless the landlord agrees to a shorter time (it’s best for this agreement to be in writing).

A landlord must give at least 90 days’ written notice to end the tenancy, but can give less time (at least 42 days’ notice) in certain circumstances.

If a landlord gives the tenant notice to end the tenancy and the tenant wants to move out sooner, the tenant must still give the landlord 21 days’ written notice.

If there are multiple tenants named on the tenancy agreement, and one or any of the tenants give the landlord notice to end the tenancy, this ends the tenancy for all of them.

When a landlord can give at least 42 days’ notice

A landlord can give at least 42 days’ written notice to end the tenancy if (and only if) one of the following apply:

the property has been sold and the new buyer doesn’t want tenants (ie the buyer wants ‘vacant possession’)

the owner or a member of the owner’s family is going to live in the property

the property is normally used as employee accommodation and is needed again for that purpose (and the fact that this might happen was stated in the tenancy agreement).

The landlord’s notice must also state one of the above circumstances as the reason for giving the notice. This reason must be genuine. If not, a tenant can challenge the notice through the Tenancy Tribunal.

Disclaimer: The information contained in this publication is exclusively for promotional purposes and is not to be relied upon for legal or contractual dealings. Tenant Source recommends you seek independent legal advice, and that you may need to seek technical or other advice and information prior to making any actions in regards to tenancies in your investment properties. Tenant Source Ltd including its staff and directors accepts no responsibility for any issues arising as a result of taking advice from this publication.