It can sometimes be expedient for both the tenant and the property owner to have a periodic agreement in which there is no set tenancy agreement but rather an agreement in which either party can give notice in order to end the agreement. At other times it is better to have a set lease in place – a lease agreement has definite terms and there are legal ramifications to ending the agreement early. In either case, it is important to have the exact terms of the tenancy in writing before it begins. This will make the terms clear to both parties so no misunderstandings can be said to have occurred.
Changing a periodic agreement.
In this case, the agreement pretty much remains unchanged until one or the other party gives notice to change it. Notice must be given in order to increase the rent or if the tenant wishes to quit living at the premises. Should the landlord wish to change the terms of the agreement, the tenant may choose not to accept the change but they will then have to quit living on the premises. If the landlord wants to give the tenant notice to leave, they still have to complete the Form 12 (Notice to Leave form). Most rental property management Brisbane companies require a that a fixed lease agreement be put in place initially but once these lapse, periodic agreements often take over. A periodic lease agreement is a lot more flexible than a fixed lease one and is ideal for those cases where either party is uncertain about how long they will rent for.
Changing a fixed lease agreement.
A Fixed lease agreement is a lot less flexible but can be broken if both parties agree. As always, you should get any changes agreed to in writing and signed by both parties. By its very nature, a fixed term agreement means more stability for both the tenant and landlord. It is more suitable in cases where both parties know what their future plans hold. The terms of the lease can be upheld legally and so a tenant cannot just give notice to leave without the landlord’s permission. By the same token, the landlord is not allowed to just increase rent without the written permission of the tenant.
Once the lease expires, it becomes a periodic lease until a new lease agreement has to be signed. A top property manager Brisbane says that it is important to get a new lease agreement signed as soon as possible. Should the landlord wish to increase the rental after the lease has expired, a new lease agreement is compulsory.
All in all, tenancy agreements can be extended or altered on the same or similar terms if both parties agree to the new terms.
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