Over the last 12 months, we’ve seen an increase in early release requests from fixed-term tenancies across the properties we manage. These require careful handling to ensure all parties are treated fairly and within the bounds of the law. While we work collaboratively with our clients on these requests to facilitate solutions, it’s important for all parties to understand the obligations and potential ramifications involved. Notably, an early release request is based on ‘hardship’ of an unplanned event.       

A fixed-term tenancy is a legal agreement set for a specified amount of time, normally about 12 months. We outline below what makes them different from a periodic tenancy, and what the ins and outs are related to fixed terms tenancies.

Fixed-Term VS Periodic

A periodic tenancy has no end date and continues until a tenant or landlord gives notice.

A fixed-term tenancy clearly states in the Tenancy Agreement the duration of the rental period term (e.g. 12 months).

A periodic tenancy may be used when the property is due for a refurbishment, or it suits both the tenant and landlord to have no fixed end date. Generally a fixed-term tenancy encourages more stable vacancy rates and is the preferred option when signing a tenancy agreement.

Ending a Fixed-Term Tenancy

When landlords and tenants sign a fixed-term contract, they are signing a legal obligation that the property will be rented for the duration of the fixed-term.

At the end of the tenancy term

When the fixed-term tenancy period is due to end, a Property Manager may liaise with a tenant to renew the tenancy for another fixed term. The Residential Tenancies Amendment Bill was recently passed into law so from 30 January 2025 landlords will be able to give notice to end a fixed-term tenancy at the end of its term.

More information about the Residential Tenancies Amendment Bill here > 

Ending a fixed-term early

Generally, a tenant or landlord is unable to give notice to end a fixed-term tenancy early however there are a limited number of exceptions, and you will need to know your obligations.

• Tenants will need to apply with a good reason to end a fixed-term tenancy.
• Landlords and Tenants can both agree to end the fixed-term early.
• Your Property Manager will provide a detailed expense report to the tenants outlining the costs involved to end the tenancy term early.
• Tenants will be liable for the rent until such time the fixed-term ends, or a new tenant is found.
• Your Property Manager will assist tenants in finding a new tenant but they must be up to our tenancy standards and pass our checks.

More information from Tenancy Services here > 

Our Property Managers have many years of experience and work collaboratively with tenants and owners to get the most out of a rental property. If you have questions about your tenancy terms, or property management in general – get in touch with the team today.