Fixed Term vs Periodic Leases
Which one is best for your tenancies? It all depends on how you wish to operate your business, and the key factor in this decision is knowing the difference between the two.
A Fixed Term lease – is just that: fixed. This means that it cannot be changed or altered between the start date and end date of the lease. A common misconception for this kind of lease is that it must be 12 months, but that is not true! A Fixed Term lease can be any amount of time, but the CRRA recommends keeping your leases 12 months or less, as you cannot increase rent or make changes to the agreement while a Fixed Term lease is in effect. Once a Fixed Term lease concludes, neither landlord nor tenant are obligated to continue in the tenancy.
A Periodic – or month-to-month – lease is on going until either the tenant or landlord ends it. To end a Periodic lease, the landlord must have a specific reason to terminate the tenancy with a minimum of three-tenancy-months or 365 days notice, depending on the reason. The tenant is required to give only one-tenancy-month’s notice with no reason being required.
For more information about the difference between a Fixed-Term Lease and a Periodic Lease, contact the CRRA today and become a Member. We’re here to help you Succeed in Your Business!
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