What is the difference between a fixed term and periodic lease in Australia?

Fixed Term vs Periodic Lease in Australia

Both are rental agreements, but they work differently:

Fixed Term Lease

• Duration: Runs for a set period (usually 6 or 12 months)
• End date: Automatically ends on the agreed date
• Rent changes: Cannot increase during the fixed term (unless the lease allows it)
• Breaking the lease: You may face penalties if you leave early without the landlord's agreement
• After it ends: You must move out or negotiate a new agreement

Periodic Lease

• Duration: Continues week-to-week or month-to-month with no fixed end date
• Flexibility: Either party can end it by giving notice (usually 2 weeks for tenants, 2-8 weeks for landlords depending on your state)
• Rent changes: Landlord can increase rent with proper notice (usually 60 days)
• Ongoing: Keeps rolling until someone gives notice to end it

Key Differences Summary

• Fixed term = commitment for both parties; periodic = more flexible for tenants
• Fixed term = predictable costs; periodic = rent can increase more easily
• Fixed term = harder to leave early; periodic = easier to exit with notice

Important: Lease rules vary by state. NSW, Victoria, Queensland, and other states have different notice periods and tenant protections. Always check your state's residential tenancy laws.

NSW Fair Trading has detailed guides on leases. Other states have similar agencies.

This is general information only. Check official sources before acting.