A period tenancy is a tenancy agreement which runs through on a periodic term such as weekly or monthly. A periodic tenancy is a tenancy that extends from one month to the next, or less often, from one week to the next. Periodic tenancies can run on a quarterly basis or even a yearly basis, but normally, most periodic tenancy’s run a monthly basis.
When dealing with short term agreements, this is the common periodic agreement, then the contract length is determined by who the original rent was paid. For example, if the tenant paid rent weekly previously then the continuing periodic agreement would run weekly, if the tenant paid rent monthly, then the agreement would renew each month.
If after the rental period ends, the tenant remains, and continues to pay rent then a periodic agreement is automatically created. To say that if the tenant remains after the agreement is lapsed that they are not on a tenancy agreement is incorrect. Legally, a period agreement is created, which both the landlord and tenant must adhere to.
What is a tenancy agreement?
If the tenant remains a tenant after the original agreement has ended and new agreement must be formed. If the tenant and landlord do not agree on a new contract a new agreement is formed automatically. This new agreement usually follows the terms set out in the original tenancy agreement and renews periodically.
What is a periodic tenancy?
A contractal period tenancy agreement differs from statural. A contractual tenancy continues from the original tenancy agreement.
The agreement may be contractual in the following three ways.
(1) By specifying in the original terms. If it states in the original terms that the agreement will become periodic then it will be.
(2) If the orginal tenancy expires and the landlord and tenant agree on a new period tenancy.
3) When a landlord agrees that a tenancy will run periodically instead of a fixed period. You can only ammend these terms if agreed on by both landlord and tenant.
In this situation the agreement does not become expired. The agreement renews each period. In a contractural agreement, the period on which the term renews can be agreed upon. Whereas, a statural agreement is predetermined.
Is a periodic tenancy a good idea?
A periodic tenancy offers more flexibility. Both parties have the chance to reconsider the agreement on a short-term basis. However, it increases risk. Either party can end the agreement on a short-term notice. Most people who can’t commit to a longer-term fixed tenancy agreement will likely investigate a short-term periodic agreement as it means they can withdraw on shorter notice without being committed to something longer term which they aren’t sure they can fulfil. You may consider a periodic tenancy if you arent certain whether you can commit to a fixed term tenancy. With a periodic agreement the landlord and tenant do not need to keep creating new agreement the original agreement will just renew if it is not terminated.
Landlords may find a short-term period agreement beneficial as it allows them to remove an unwanted tenant easier. This can be more appealing to the landlord as if they want to end a tenancy agreement they may have to issue a notice to the tenant under a fixed term agreement and have either longer or more complex eviction terms.
Tenants may also find short term periodic tenancys more beneficial as it offers them more flexibility. A tenant may need a short term let. Or a tenant may be unsure of whether they can commit to a fixed term agreement. This would give the tenant the opportunity to only commit to a short-term agreement. Giving the tenant the opportunity to end the tenancy on short notice if the need to.