Fixed Term Tenancies- Important Information
Fixed term tenancies provide some stability to you as a tenant in regards to your tenancy but it is important to note that there are commitments on your part as well. If you have any questions or doubts you should discuss these with the Property Manager before signing the tenancy agreement. The following information is designed to assist you in understanding those commitments.
What is a fixed term tenancy: A fixed term tenancy is a binding contract on you as tenant and us as Landlord (Agent for the Owner). It means there is a commitment on your behalf that you will pay rent for the full period of the fixed term tenancy. It also means there is a commitment on the part of the owner to make the property available to you to rent for the period of the tenancy. This means that even if the owner sold the property during the period of the tenancy your tenancy can not be broken and the new owner would have to continue to rent the property to you until the end of the fixed term.
Can I give notice to end a fixed term tenancy early: You cannot by law give notice to end a fixed term tenancy early. The only way a fixed term tenancy can be ended early is by mutual agreement between the parties (Tenants and Landlord) or by order of the Tenancy Tribunal.
What if my circumstances change and I just have to get out of the fixed term tenancy: As stated above it is possible to end a fixed term tenancy early if both parties agree to do so. We understand that life can sometimes interfere with plans and so will work with you as best we can if for some reason you feel you just cannot continue with your fixed term tenancy. It is important to understand that there are some costs involved in this process –
- You must continue to pay the rent until we can find a suitable tenant to replace you. This means rent is due right up to the day before a new tenant were to take on the tenancy
- Complete an ‘Agreement for Early Termination of a Fixed Term Tenancy’
- You will need to pay for advertising the property to rent, agent time for marketing the property and credit checks for applicants
The first step is for you to speak with your property manager as early as possible and discuss your situation with them so they can help you work through what needs to be done.
It is important to remember that in finding a new tenant to replace you we will not necessarily take the first person that applies as we have an obligation to find a new tenant who passes our background checking process. Depending on the time of year and demand for rentals in the area this can sometimes take longer than expected but we will do our best to find a replacement as quickly as possible.