Periodic Vs Fixed Term Leases In Toowoomba Rental Market

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A periodic lease has no fixed end date. A fixed term lease has a fixed end date. That is the difference - all other terms and conditions stay the same.

Tenants on a periodic lease can give two weeks notice at any time and move out. If the landlord wants vacant possession, they need to give the tenant two months notice.

Why would a landlord allow a periodic lease when it removes the security of rental income?

Most often we see fixed term leases roll over to periodic – not start out that way. If no action is taken by either party at the end of a fixed term lease it will automatically role into a periodic.

Periodic leases offer the flexibility to both the tenant and the landlord.  A situation we see a often in Toowoomba is a tenant wanting to build their own home and can’t give an exact date their new house would be ready. There is nothing to be gained by making the tenant leave at the end of their lease if they only want to stay another month or two. A bird in the hand is better than a bird in the bush as they say.

On the opposite side, a landlord may wish to move back into the property but wants to wait until the end of the school year rather then at the end of the lease in September for example. They might let the tenant stay on a periodic lease until the end of the school year.

At McAdam and Turnbull Realty we recommend a fixed term lease as providing the best security for landlords  for cashflow and controlling the end date of a tenancy but there are times when a periodic lease may be applicable to particular circumstances.

Landlords should check their insurance policy before giving instructions on a periodic leases because some policies require a fixed term lease in place at all times.

Contact us at McAdam and Turnbull Realty if you would like to discuss your lease or anything else about renting in Toowoomba.