The benefits of having a fixed term lease for a rental property, rather than a month-to-month (also known as periodic) arrangement, vary with your perspective. Those aspects which are positive for the landlord are generally less desirable for the tenant.
In this article we'll take a look from the landlord's perspective at the top reasons why a fixed term lease is usually preferred.
Benefits of having a tenant on a fixed term lease
Downsides of having a tenant on a month-to-month (periodic) arrangement
Discuss your plans with your property manager
In summary, the ideal arrangement will depend on your circumstances, and should be discussed with your property manager. A periodic arrangement may be more suitable if you require flexibility to end the tenancy should you be considering selling or moving back into the property, for example.
However if you have no such plans and would like greater peace of mind and control over your investment, a fixed term lease offers greater stability and security.
About Carnelian Property Management Newcastle
We are a family-owned and run Newcastle business. We’re landlords. We’re home owners. We’ve also been long-term tenants. We are refreshingly accessible with intimate knowledge of the greater Newcastle, Lake Macquarie and Fern Bay rental markets.
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