QLD Is it worth having a 2 month lease or is periodic better?

Tenants are asking me for a new 2 month lease when their current lease ends but not sure if it's better to just go periodic. Property is on Gold Coast.

If they go periodic after the current lease ends I think they only have to give 14 days notice if they want to vacate? However if they are on a 2 month lease then i believe they have to give 30 days notice to vacate?

What's the best option to give them which gives me the upper hand?

 

Check your landlord insurance it may require a lease for coverage

 

Check whether they know a periodic lease is even a thing, they may be under the impression any lease must be for a specified time.

For reasons I will never fathom every state seems to have to have different rules. Usually its 14 days notice to terminate a fixed term lease, and 21 days for periodic - although I cant speak for Qld and it wouldnt surprise me if there was a difference in Qld just because.

Not sure what you mean by 'gaining the upper hand'.
They seem to want to stay for a couple more months and want to know if you can facilitate it. Periodic would be easier in my opinion as its more common than a 2 month lease - which in anycase will roll over to periodic on expiry anyway.

 

If your property is managed by a PM I would suggest periodic otherwise you will be hit with additional fees (renewal).

Periodic is still a lease subject to most of the same previous lease conditions, so this should not affect LLI.

 

When does their current lease end? If it's before the 29th September 2020 and they can claim that they're affected by COVID-19, you are required under COVID-19 regulations to offer a fixed term extension to at least that date - you cannot go periodic.

Well, probably would talk to the PM first - could probably get them to waive it

Insurance often caps payments for lost rent to a lesser amount if the tenant skips out on a periodic vs a fixed term.

 

I am not a big fan of periodic leases.

 

If you're going to cop renewal fees I wouldn't even offer another lease to them for only 2 months. Unless they pay the associated fees themselves.

 

Thanks for the replies, here's an update.

My PM in Qld doesn't charge for signing a new lease with an existing tenant so I've asked her to sign them up to a new 2mth lease, as that's what the tenants have requested.

No one should be paying a lease renewal fee to their PM if your existing tenants want to sign another lease. This is a rip off in my books!

FYI, here's what she replied..

 

That is why I like fixed term leases.

 

The closer you can get to warmer peak periods (as long as not in December or early Jan), the better the outcome.