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Q&A | My renter doesn’t want to renew their tenancy agreement?

This statement is a more common situation than you may think.


As the property owner, it is important to understand that when a fixed term

agreement comes to an end (and the tenancy is not renewed), you are still

protected by the tenancy terms and legislation.


Both the tenancy agreement terms and the Act allows for a fixed term to revert

automatically to what is known as a continuing/periodic tenancy agreement. This

means there is no tenancy end date if the agreement is not renewed. While there

are differences in the notice periods required for the two types of agreements and

possible insurance cover limitations, there are no other differences. If the renter

does not meet their obligations, the same remedies apply to fixed-term and

continuing/periodic agreements.


If the renter does not want to renew the tenancy, the first step in the discussion

process should always be to ask, "Why they do not wish to renew"? Often there

is a legitimate reason, such as they are in the process of buying a property.

You also need to consider that in some states, you must have a fair and justifiable

reason to terminate the tenancy in the eyes of the courts.


If the renter is required to vacate the property, there is the potential of a vacancy

period in finding a new suitable quality renter and the costs associated with

advertising the property and securing a new renter.


As your managing agent, we will always keep you updated in advance regarding

a tenancy expiring and discuss the advantages and potential downsides that are

unique to your renter's agreement.

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