As a tenant, securing a tenancy agreement that suits your needs and preferences is crucial to ensure a comfortable and convenient living situation. One option that many individuals opt for is a tenancy agreement on a rolling basis. In this article, we’ll delve into the details of what a tenancy agreement on a rolling basis is, its advantages and disadvantages, and what to consider before entering into one.
What is a Tenancy Agreement on a Rolling Basis?
A tenancy agreement on a rolling basis, also known as a periodic tenancy, is an agreement that does not have a fixed end date. Instead, it automatically renews at the end of each rental period, which is often on a month-to-month basis. This type of tenancy agreement is commonly used by landlords and tenants when they want to have more flexibility in their lease terms. It can be beneficial for those who are not ready to commit to a long-term lease or expect to move out of the property in the near future.
Advantages of a Tenancy Agreement on a Rolling Basis
Flexibility: Tenants who sign a tenancy agreement on a rolling basis enjoy flexibility in their lease term. They can terminate the agreement with a month’s notice, which is often much shorter than the notice period required for a fixed-term tenancy. Additionally, landlords can also end the agreement with a notice period of at least one month.
Lower upfront cost: A periodic tenancy often requires fewer upfront costs than a fixed-term tenancy. This is because tenants are not required to pay for the entire lease term upfront, which can be a financial burden for some individuals.
No need to sign a new lease: With a tenancy agreement on a rolling basis, tenants do not need to sign a new lease each time the agreement is renewed. This saves time and effort as both parties are not required to draft and sign a new contract, making the process more streamlined.
Disadvantages of a Tenancy Agreement on a Rolling Basis
Rental increases: Landlords can increase the rent at any time with a periodic tenancy. This means that tenants may need to pay more for their rental unit, and the rent could increase without warning.
Less security: A tenancy agreement on a rolling basis offers less security than a fixed-term tenancy. This is because the landlord could terminate the agreement with just a month’s notice, which can be a source of stress for tenants who may feel less settled in their living situation.
What to Consider Before Signing a Tenancy Agreement on a Rolling Basis
Before signing a tenancy agreement on a rolling basis, tenants should consider the following factors:
Rent increases: It’s important to ask the landlord if they plan on increasing the rent and by how much. This will help tenants understand if they can afford to continue living in the rental unit.
Length of stay: If a tenant plans on staying in the property for a long period, a fixed-term tenancy may be a better option as it offers more security.
Notice period: Tenants should check the notice period required by the landlord to end the agreement. This will help tenants plan their move-out and avoid any potential issues.
In Conclusion
A tenancy agreement on a rolling basis can be a convenient and flexible option for tenants who want more freedom in their tenancy. However, it’s important to consider the advantages and disadvantages before signing the agreement to ensure it’s the right fit for your living situation. Tenants should also be aware of their rights and responsibilities according to their local laws and regulations.