Navigating the different minimum notice periods when a tenant vacates a property can feel like traversing a maze of complexities. From lease breakages to leases ending, arrears & then add in the different types of leases from Periodic Leases to Fixed-Term Leases, the varying timeframes can seem endless.
Lucky you have us as your agent!
Questions about different minimum notice periods relating to different situations are frequently received from both tenants & landlords.
Today, we’re here to untangle some of the confusion & shed light on these critical timeframes.
This information will be useful for both tenants & landlords.
So let’s dive in!
Question – What is the difference between a Fixed-Term Lease & Periodic Lease?
So many of the differences in minimum notice periods depend on the type of lease in question.
Fixed-Term Lease vs Periodic Lease – what is the difference?
A Periodic lease is often called a ‘week to week’ or ‘month to month’. Whilst those are not technical (or legal) terms, they are widely used.
A lease transitions into a Periodic Lease when the Fixed-Term date listed on the lease passes.
Let’s say that a lease is from 1st January to 30th June.
As of 1st July the lease becomes a Periodic Lease.
Most things stay the same – the rent doesn’t change, the responsibilities of all parties remain the same & it’s the same tenant in the property. However, there are changes relating to minimum notice periods for both tenant & landlord.
In the above example, the lease is a Fixed-Term Lease between 1st January to 30th June.
With us so far? Or just feeling more confused than ever!
LANDLORD ENDING THE LEASE
When a landlord ends a lease it can be referred to as ending the Fixed-Term Lease or a No Grounds Notice To Vacate.
A No Grounds, simply means the landlord wants to ask the tenant to leave, the tenant hasn’t done anything wrong.
- 30 days – If a landlord wants to have the tenant leave the property at the end of the lease & is still within the Fixed-Term Lease period then a minimum of 30 days notice is required.
- 90 days – If a landlord wants to have the tenant leave the property & the lease is a Periodic Lease then a minimum of 90 days notice is required.
TENANT ENDING THE LEASE
- 14 days – If a tenant wants to leave the property at the end of the lease & is still within the Fixed-Term Lease period then a minimum of 14 days notice is required.
- 21 days – If a tenant wants to leave the property & the lease is a Periodic Lease then a minimum of 21 days notice is required.
SELLING THE PROPERTY
If a landlord decides to sell the property & there is a tenant with a Fixed-Term Lease in place, then regardless of who owns the property the lease remains valid & the tenant cannot be asked to vacate.
- 30 days – If a landlord sells the property & there is a Periodic Lease, then a minimum of 30 days notice is required.
This 30 days notice can only be issued once the property has sold – not just going on the market for sale.
DOMESTIC VIOLENCE
Should a tenant unfortunately be involved in a domestic violence situation, they are permitted to end the lease immediately without penalty regardless of whether it is a Fixed-Term Lease or Periodic Lease.
BREAKING THE LEASE
If a tenant is required to break a Fixed-Term Lease then there is a monetary penalty depending on how long is left in the Fixed-Term lease.
- 4 Week’s Rent is required if less than 25% of the lease has expired
- 3 Weeks’s Rent is required if between 25% – 50% of the lease has expired
- 2 Weeks’s Rent is required if between 50% – 75% of the lease has expired
- 1 Week Rent is required if 75% of the lease has expired
So as you can see, this all depends on how much of the lease agreement is remaining.
ARREARS
It goes without saying that experience counts when managing any arrears situation.
However, at times, issuing a Notice to a tenant is required. It’s important to remember that a Notice To Vacate (arrears) cannot be issued until a tenant is 14 days in arrears.
- 14 days – If a tenant is 14 days in arrears, a Notice To Vacate can be issued with a minimum of 14 days to vacate. Should the arrears be cleared, the landlord & agent can cancel the Notice To Vacate & the tenancy continues.
BREACHING OF LEASE
In more serious situations where a tenant is damaging the property or there has been more unpleasantness such as threats or intimidation, there are yet more specific minimum notice periods.
The term – Breach Of Lease – can cover a wide range of instances which may include damage to the property, neglect or using the property illegally. In these cases there is no minimum notice period required.
Thankfully these instances are very rare.
I know it’s hard to believe, but there are even more situations where different minimum notice periods apply.
But I’m worried that our heads might explode if we continue to list them!
The good news is that the ones listed above are the most common.
If you ever have any real estate questions please don’t hesitate to reach out, I’m always happy to have a chat.
Look forward to speaking soon.
Cheers,
Josh
