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What is a
Fixed Term Tenancy / Tenancy for Years?
Rental Lease Agreements PART 1
Whether
you
already have a fixed term tenancy or are interested in signing one with
your new tenants, find out more about this highly popular type of
rental lease agreements and how to handle your fixed term
rental
right now.
Before we begin, it's important you know tenancy for years is
another common name for a fixed term lease.
However
this name can be quite misleading because a fixed tenancy doesn't have
to
go on for years. A tenancy for years can only last for a month if that
is what the landlord and tenant agrees on.
What
are the Major Features of a Fixed Term Tenancy / Tenancy for Years?
- Fixed
term rental lease agreements have a specific starting and ending date
which will be
decided by both the landlord and tenant.
- The
average time period for a fixed term rental is 1 to 2 years. A fixed
term lease does not have
to be a long term tenancy. Even 1 week tenancy can be a fixed tenancy
as long as there is a pre-determined beginning and ending date.
- Before
your tenancy ends, you are generally not allowed to increase the rent
unless you tenant agrees to it or certain conditions are met.
- Instead
of having an expiry date, some rental agreements have a stated
condition which will end it. For example you can have a fixed tenancy
that will automatically end once you sell your rental property.
However this type of tenancy is not valid in some countries so be sure
to check before you get into one.
- You
are not allowed to terminate the rental lease agreement before the
stated
ending dates unless your tenant agrees to it or you have a valid legal
reason.
When
it comes to inking your rental agreement, there are the 2 most popular
and important types of tenancy are a periodic tenancy and a fixed term
tenancy. Click
here for our complete rental lease agreements guide to a periodic
tenancy.
What Happens
When Your Fixed Term Tenancy / Tenancy for Years Expires?
When
the time period of fixed tenancy ends, a few things can
happen depending on your local landlord tenant law:
1.
Your tenant can choose to move out - If this happens, you will need to
find a new tenant for your rental property. To avoid any losses due to
the vacancy of your rental property, you should always confirm with
your tenant if he is staying on 1 to 2 months before your fixed tenancy
ends.
2. You and your tenant can ink a new rental agreement - This
can
be another fixed term rental or you can negotiate other types of rental
lease agreements with different terms and conditions.
3. Your lease automatically becomes a periodic tenancy
- In some countries if you agree to let your tenant stay on
without signing a new rental agreement, you will automatically
end up with a
month to month tenancy according to the law.
4. Your tenant
continues staying on your rental property without your permission - If
your tenant refuses to leave when your rental lease agreements end,
then you
will have a sticky situation known as a tenancy at sufferance
where you may have to file for an eviction lawsuit to remove your
tenant.
How
do you know if this type of rental lease agreements are right for you
and how do you worm your way out of a fixed term tenancy
before it
ends?
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