Beyond the Fixed Term of the Tenancy a landlord has 3 key choices:

1. Extend the tenancy
2. Renew the tenancy
3. Terminate the tenancy

Each of these options is explained below.

1. Extend the Tenancy

If a landlord wishes to extend the tenancy beyond the fixed term on the same terms as the initial tenancy there is no need to take any further action. By taking no action, the existing tenancy will extend beyond the end of the fixed term. This is referred to as a periodic tenancy. If the rent is paid monthly, the ‘period’ of the tenancy will run month to month. The terms and conditions imposed on the landlord and tenant at the start of the tenancy will continue.

During the periodic tenancy, if a lamdlord wishes to terminate the tenancy they must give the tenant a minimum 2 months’ notice that they require possession.

During the periodic tenancy, if the tenant wishes to terminate the tenancy they must give the landlord one months notice in writing. Unless stipulated otherwise, the notice period will be one full rental month.

The advantage of this option is you do not need to wait until the end of a fixed term to get possession of the property. The disadvantage of this option is the tenant does not need to wait until the end of a fixed term to end the tenancy.

• Action a landlord will need to take if they want to extend the tenancy – Nothing

2. Renew the Tenancy

If a landlord wishes to renew the tenancy for another fixed term they have two choices:

• Renew the tenancy on the same terms.
• Offer a tenancy on new terms. This is referred to as a replacement tenancy.

Commonly, a break clause is added to a replacement Tenancy Agreement entitling both parties to end the tenancy early. For tenancy renewals without a break clause included, neither party would be entitled to end the tenancy until the end of the new fixed term.

The advantage of this option is the tenant must wait until the end of a fixed term to end the tenancy. The disadvantage of this option is you must wait until the end of a fixed term to get possession of the property.

• Action a landlord will need to take if they want to renew the tenancy on the same terms – Arrange a new Tenancy Agreement.

• Action a landlord will need to take if they want to offer a replacement tenancy – Insert, update or delete any terms as required for the replacement Tenancy Agreement and arrange for the replacement Tenancy Agreement to be signed.

3. Terminate the Tenancy

If a landlord wishes to terminate the tenancy at the end of the fixed term, they must serve the tenant a notice telling him/her/them the landlord wants possession. The notice must give the tenant not less than two months’ notice and cannot be served in the first 4 months of any tenancy. This is known as a Section 21 notice.

• Action a landlord will need to take if they want to terminate the tenancy – Serve a Section 21 notice.

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