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Tenant Question: How does an agreement turn into a periodical agreement?

One of our tenants recently asked "Can you please explain how an agreement turns into a periodical agreement?"

A Periodic tenancy is when the lease agreement has reached and surpassed the lease expiry date. There is no longer a lease expiry date but a lease is still in place based on the original terms and conditions. It can reoccur for as long as both parties desire and until one party provides notice to the other to vacate or terminate.

There are different notice periods for both parties, and it may depend on the required notice timeframe outlined in the lease, or the period of the rental payment e.g. fortnightly or monthly, depending on your State’s legislation. Your lease will have this information contained in it.

If there was no lease to begin with, the owners acceptance of rental payments establishes a lease with standard terms and conditions governed by each State’s tenancy Act.

While some owners will agree to a periodical (or periodic) tenancy, many others may not for reasons that it may affect their landlord insurance by reducing their amount of cover, and there may be smoke alarm testing and servicing required each 30 days (depending on the State and it’s legislation) when a periodical tenancy is in place.


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