What Happens If The Tenant Does Not Want To Renew<< Back to Blog
This is a more common situation than you may think. As the owner of the property it is important to understand that when a fixed term agreement comes to an end, there is still a tenancy in place and the same tenancy agreement terms and conditions apply. Both the tenancy agreement and the Act allow for a fixed term to revert automatically to a continuing/periodic tenancy at the end if it is not ‘renewed’ for a further fixed period.
While there are some differences in the notice periods required for the two types of agreements, there are no other differences. In other words, if the tenant does not meet their obligations the same remedies apply to both fixed term and continuing/periodic.
The first step in the renewal discussion process should always be to ask the tenant why they do not want to renew. Often there is a legitimate reason such as they are in the process of buying a property.
If a tenant does not agree to a renewal of a fixed term at the end of a tenancy, then there are only two options that exist – either terminate the tenancy or allow the tenant to stay on as a continuing/periodic tenant.
Remember, while there are advantages to owners knowing that a tenant is secured by a fixed agreement, it may be better to have a continuing/periodic tenancy than no tenancy at all. In deciding the outcome you should look at how long the tenants have resided in the property, have they paid rent on time and are they a quality tenant.