To fix or not to fix: the landlord dilemma
Many landlords ask us here whether they should allow their tenants to roll over onto a periodic lease when the fixed term lease has ended. There are of course both positives and negatives involved in allowing your tenancy to roll over into a periodic lease. The individual landlord’s situation and their short term plans for their investment property will influence these factors.
Once a periodic lease has begun, unless otherwise stated in writing, all the terms of the previous agreement will remain in place. Tenants will be allowed to give landlords 14 days notice to vacate the property while the landlord must give the tenant two months notice unless they have breached the agreement. Many landlords will feel this is advantageous if they are planning on selling in the short term or waiting to carry out some renovations. The negatives are obvious in that your property can be vacant with as little as two weeks notice, but if your property manager is on the ball they should be able to advertise the property immediately. Another negative involved with a periodic lease is that some landlord insurance will not cover rent default if a tenant is not in a fixed term lease.
The million dollar question is which is ultimately better, periodic or fixed? There is no correct answer to this as it all depends on a landlord’s situation and whether they are looking for some flexibility with their investment property or if they want the security a fixed term lease will allow. Our advice is discuss it with your property manager and between you decide what meets your requirements at the time.