A fixed-term lease is a lease agreement that runs for a specific period, with a clear start date and end date. The most common fixed terms for residential properties in Australia are 6 months and 12 months, though you can agree on any length, from 3 months to several years.
During the fixed term, neither the landlord nor the tenant can end the tenancy without cause, except in limited circumstances defined by state legislation. If a tenant does need to leave early, they will need to break the lease. This gives both parties stability and certainty.
What Happens at the End
When a fixed-term lease reaches its end date, one of three things typically happens:
- Renewal: the landlord and tenant sign a new fixed-term lease, often for another 6 or 12 months
- Rollover to periodic: if neither party takes action, the tenancy automatically continues as a periodic tenancy (month-to-month or fortnight-to-fortnight, matching the rent payment cycle)
- Vacancy: the tenant moves out by the end date, having given any required notice
The specific notice periods and requirements for ending or renewing a fixed-term lease vary by state. In some states, the landlord must give written notice if they do not intend to renew.
Rent During the Fixed Term
In most states, rent cannot be increased during a fixed-term lease of 12 months or less. For longer fixed terms, rent increases may be allowed if specified in the lease. This gives tenants certainty about their costs and landlords certainty about their income for the duration of the agreement.
Why It Matters for Landlords
Fixed-term leases provide income security: you know the tenant is committed for a set period. They also give you a clear timeline for rent reviews and property inspections. The trade-off is less flexibility; if you need to access the property or end the tenancy early, your options are limited during the fixed term.
propkt tracks lease start and end dates and can alert you with automated reminders when a lease is approaching expiry so you can plan for renewal or re-letting in advance.