Tenant wanting to go periodic

Note that I'm aware of. All they need to compensate is 1 week rent if they have served 75% or more of the lease. The legislation is in the favour of the tenant as you can see.

 

It depends on which State the IP is located.

What you posted is true for QLD but not in NSW.

 

That’s for a caravan park, not a house

 

This is only true if you choose to put a set break lease fee clause in your lease.

 

No...

 

Can you tell me a bit more about this? I thought they changed the legislation so that this is by default. Are you saying if i strike it out, its not applicable? If so, what does the penalty become?

 

They have changed the legislation, but I'm not sure when its come into force in NSW. It shouldn't affect fixed term leases created before the in-force date though.

 

Its 23 March 2020 I think. All leases drawn up from this date onwards doesn't have a choice for break lease option as far as I understand whereas previously you can strike it out. Please correct me if I've mistaken.

 

Could there be implications with insurance cover between fixed and periodic leases? I recall Terri Scheer provides some cover for when a tenant breaks a fixed term lease.

 

That date could be right - I can't easily tell from a primary source at the moment. I actually thought it was much later in the year.

So its possible a 6 year lease after that could have been caught by the new laws - was that yours?

 

Yeah my lease was signed after this date and so follows the new rules which suck for the landlord.

 

It's the same, the screenshot came from a general page about tenancies. Tenants seem to wait until the last 2 weeks to notify the RA prior to their lease ending. You're not really going to gain much if they hang around for a year with 3 month leases as you'll need to do the smoke alarms 4 times a year and in my case the RA charges a fee for the new lease. It's a pain if you need to organise work to be done in the home to line it up with the vacant period.

 

Ah in this scenario in NSW it may be more strategic to let the tenant go periodic, they have to provide 21 days notice, whereas at the end of the short fixed term its only 14 days and the break fee is as little as 1 week rent.