Everything You Need to Know About Fixed Term Tenancy

While owning a house to call your own is pretty cool, being a tenant is much more pleasant for certain reasons. For starters, it is not as much responsibility as being an owner, who often get stuck with fixing any malfunction around the property. For tenants, things are much simpler. You also get to move whenever you want to; you’re not obligated to wait for the place to be sold like with homeowners, so there’ a sense of freedom with being a tenant. If you’re looking to start renting, you need to first understand what your lease would look like –– which will most likely be fixed term.

Fixed term tenancy

This is the most popular form of leasing that you’ll most likely stumble upon. As the name implies, fixed tenancy means the lease is for a certain period of time –– it can be anything from 6 to 12 months, or a different period agreed upon by all parties. This kind of lease has a fixed end date that is stated from the beginning. Unless there is a specific clause that states otherwise, you can’t end the tenancy before the written end date by giving notice without paying compensation to the landlord because you want to break free of the lease earlier than the agreed upon date.

Periodic tenancy on the other hand has no specific end date, and your fixed lease automatically turns into periodic when the term ends. In this case, you or the landlord can terminate the contract whenever you please by giving a notice whose duration depends on what’s written in the agreement. If no party cancels the tenancy, it will go on indefinitely. 

Is there a rent increase?

This usually depends on the contract between you and the landlord, but there most likely will be an increase, though with certain conditions. In most cases, there can’t be an increase for fixed term tenancy if the contract duration is under 2 years –– unless otherwise states in the leasing agreement. If the term goes beyond those 2 years, you can expect a rent increase once every 12 months at the most –– meaning the landlord can’t increase the rent 6 months after you’ve moved in. 

Security deposit

No matter what kind of lease you have, you will pay a security deposit or a bond beforehand to the landlord to ensure they can financially cover any breach of contract on your end as a tenant. They’ll use this money for repairs or cleaning if you left the property in a poor state. As explained in the article by Royal Cleaning, this is why you should always contact a professional cleaning service towards the end of your fixed tenancy if you want to see your deposit again. You might be tempted to save money and just swiftly dust off the place on your own, but chances are, the landlord won’t fall for that and they’d withhold your money, rightfully so. It’s always best to get experienced cleaners to clean any mess you might have caused, which ensures you’ll get your bond back. 

You should also take care of any repairs needed on the property. That means replacing broken windows, fixing dented doors, and undoing any damage you might’ve caused during your tenancy so you could get the deposit back. 

General repairs

It should be clear, though, that the repairs you have to do before you hand over the property are any you’ve caused. During your tenancy, it is up to the landlord to ensure the property is in good condition for tenants to live in, and they are the ones who should handle repairs with heating or plumbing systems and general malfunctions overall. Maintenance should also be paid for by the landlords not the tenants. 

Making changes to the property

Unless stated otherwise in the lease, with your fixed or periodic term tenancy, you should ask the landlord for permission if you want to make any chances to the property. That includes everything from painting the rooms to tearing down the walls. You can’t do stuff like that without getting written approval from the landlord that it is fine if you did that. This protects you from any claims in the future that you went behind their backs and damaged the property. 

You need to read up quite a lot about your rights and duties as a tenant in general. But when it comes to fixed term tenancy, the important thing is understanding when you can leave the property if you want and what happens after the end of term –– and never forget the things you need to do in order to get your security deposit back.