It’s important to ensure that you fully understand both the Landlords and Tenants rights before offering a Periodic or Fixed term Tenancy. A Tenancy Agreement is a legally binding contract and failure to understand what you are entering into may see you end up at the Tenancy Tribunal Court.
You need to ask yourself whether your situation may change and if so having a Periodic Tenancy will give you a greater degree of flexibility. For example if there is any chance you may need to sell the property in the short term you may want the ability to sell with vacant possession.
On the flip side having this flexibility may also land you in a position where 2 months into the Tenancy the Tenant give notice to vacate, leaving you with potential vacancy and a disruption to your planned cash flow.
Choosing which option is right for you depends not only on your personal circumstances but also the location of you property. Properties situated in lower socio-economic areas may be better suited to Periodic Tenancies, this gives you time to assess whether they are good Tenants before committing to being locked in. Whereas, you find properties situated in more affluent areas attract Tenants that want longer term security and therefore are reluctant to sign unless they are offered a 12 month Fixed Term.
Below is a basic guideline to both types of Tenancies:
If you need any help deciding whether a Fixed Term or Periodic Tenancy is best for your North Shore or Central Auckland rental property then contact us today on (09) 476 3433.
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