Periodic Lease NSW: Everything You Need to Know

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.

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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.

In summary, a periodic lease is a flexible tenancy agreement that renews on a rolling basis until either party gives notice to terminate it. It offers less security of tenure than a fixed-term lease, but provides flexibility to both the tenant and landlord.