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Is
a Tenancy for Years / Fixed Term Tenancy
Right for Your Rental Lease? PART 2
Should
I choose a tenancy for years / fixed term tenancy when it comes to my
rental lease agreements?
Before you make this crucial decision, find out if it is right for you
in this Part
2 of our Fixed Term Rental Guide.
Do you know
what are the important features of a tenancy for years? If No,
Click here
for Part 1
of this Fixed Term Tenancy Guide.
Should You Sign a
Fixed Term Lease Agreement with Your Tenant?
For
a landlord, the good thing having about a fixed term tenancy
is that
you will be assured of regular rent payments during the entire lease
period. If
you need to be overseas for a long time, you won't have to worry
about your tenants wanting to end
your rental lease agreements halfway.
If
your
tenants choose to simply leave without your consent during the tenancy
period, you will be
able to claim rent payments from them until the end of the rental
period. In some countries and states, you will only be able to claim
rent payments if you can show that you were not able to rent out your
property to other new tenants.
However
you have to remember that a tenancy for years works like a double
bladed
sword that can cut both ways. If you end up in a contract with a
nightmare tenant, it will be a headache trying to toss him off your
rental property.
Instead of
simply giving him a notice to leave, you
have to file an eviction lawsuit and prove that he has openly broken
the rules
of your rental agreement. Only after winning the lawsuit, you
will be able to obtain a court order to remove your tenant.
How
do You End a Fixed Term Tenancy for Years Before it Expires ?
In most cases, you are not allowed to end a fixed term rental before
it ends unless both
the landlord and tenant agrees to it. You can try to sweeten the deal
by offering your tenant money compensation or helping him find a new
place to stay.
However, in
some special cases you are allowed to end even without the
other party's consent.
In
some rental lease agreements, there will be a break clause in the
contract which
allows your tenants to end their lease early if they give you a notice
in advance. Depending on the terms of the contract, your tenant may or
may not have to pay you penalty fees for choosing to do so.
In
some countries and states of the USA, you or your tenant will be able
to back out of the rental lease agreements if the lease period is
short.
For these countries you will usually need a time period of 6 months or
more in order to enforce a fixed term tenancy.
You or your
tenants will also be given the right to end your tenancy for years
early
if one party breaks the terms of the agreement. For example, your
tenants will be able to end the rental lease agreements early if you
fail to
maintain your rental property according to the health and safety
standards stated by the federal fair housing laws.
Want to learn MORE practical must-know facts on the
right tenancy type for you?
Return from this Tenancy for Years page to our Types of Tenancy Agreements
guide
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