Types of tenancy
How many types of tenancy are there?
There are two main types of tenancy. They are called a periodic tenancy and a fixed-term tenancy. Whether you are a landlord or a tenant you should know what you have to do in each kind of tenancy so you can choose the one that suits you best.
Periodic tenancy
A periodic tenancy lasts until either the tenant gives the required notice that they want to leave or the landlord asks them to leave. A periodic tenancy is good if you’re not sure of your plans.
Fixed-term tenancy
A fixed-term tenancy finishes on a date that is written in the tenancy agreement. The landlord can’t give the tenant notice to quit before then. The tenant can’t give notice to leave before that date either. A fixed-term tenancy is good if you are sure that nothing will change.
What happens in a fixed-term tenancy if something changes?
Sometimes a landlord plans to go overseas for a year and arranges a fixed-term tenancy, but has to come home early. If this happens, the tenancy agreement means they can’t move back into their home until the fixed term ends.
Sometimes tenants get new jobs or need to move out for other reasons. If this happens, they may have to keep paying the rent until the tenancy ends or new tenants are found.
A fixed-term tenancy can be ended if both the landlord and tenant agree. However, a landlord or tenant can ask the Tenancy Tribunal to end the tenancy early if there is an unexpected change in their circumstances that results in severe hardship if the tenancy continues. This must be more than the hardship that the other party would suffer if the tenancy ends. If the Tenancy Tribunal thinks it would be unfair to make the tenancy continue, it may agree to end the tenancy.
The Tribunal can also order the landlord or the tenant to pay compensation.