What is the Difference Between a Fixed Term and Periodic Agreement?

What is the Difference Between a Fixed Term and Periodic Agreement?

When renting a property, it’s important to understand the different types of rental agreements available. The two most common types are fixed term agreements and periodic agreements.


Fixed Term Agreement 

1. Defined Duration

A fixed term agreement has a specific start and end date. Common durations range from six months to one year, although longer or shorter terms can be arranged. 

    

2. Stable Rent

The rent amount is fixed for the duration of the agreement, providing you with financial stability and predictability. 

  

3. Binding Contract

Both you and ShareSorted are legally bound to the terms of the agreement for the entire fixed term. Early termination typically results in penalties or additional costs. 

  

4. Renewal or Transition

At the end of the fixed term, the agreement can either be renewed for another fixed term, transition to a periodic agreement, or end, depending on the terms and the wishes of both parties. 

  


Periodic Agreement 

1. Ongoing Duration

A periodic agreement does not have a specified end date and continues on an ongoing basis, usually from month to month. 

  

2. Flexibility

Offers greater flexibility for both you and the landlord, making it ideal if you’re unsure of your long-term plans or prefer not to commit to a fixed term. 

  

3. Notice Period

Either party can terminate the agreement by providing notice. For ShareSorted properties, the minimum notice period required from you is 4 weeks. 

  

4. Potential for Rent Adjustments

Rent can be adjusted with appropriate notice, providing ShareSorted with the flexibility to respond to market changes. 

  


Key Differences 

1. Commitment Level 
  1. Fixed Term: Requires a commitment for the entire duration of the agreement. 
  1. Periodic: Allows for month-to-month flexibility with the ability to give notice to end the Occupancy. 
  
2. Financial Predictability
  1. Fixed Term: Rent remains stable throughout the term, aiding in budgeting and financial planning. 
  1. Periodic: Rent may be adjusted, which can affect financial predictability. 
  
3. Termination Process
  1. Fixed Term: Early termination may involve penalties unless both parties agree otherwise. 
  1. Periodic: Easier to terminate with the required notice period, offering more flexibility for you. 
  
4. Stability
  1. Fixed Term: Provides stability and security for both you and the landlord. 
  1. Periodic: Offers flexibility but may involve more frequent changes and potential adjustments. 
  

Which One to Choose? 

Choose a Fixed Term Agreement If:

  1. You value stability and predictability in your living arrangements. 
  1. You are willing to commit to a specific period. 
  1. You prefer fixed rent without adjustments during the term. 

  

Choose a Periodic Agreement If:

  1. You need flexibility due to uncertain future plans. 
  1. You prefer the option to move with less notice. 
  1. You are comfortable with potential rent adjustments. 

  

Understanding the differences between fixed term and periodic agreements can help you make an informed decision based on your needs and preferences. If you have any questions or need further assistance, please contact our support team. 


    • Related Articles

    • What is a Fixed Term Agreement?

      A fixed term agreement is a type of rental contract that specifies a set period during which you agree to rent a property. This period is predetermined and agreed upon by both the Occuapnt and ShareSorted before the Occupancy begins. Key Features of ...

    • What is a Periodic Agreement?

      A periodic agreement is a type of rental contract that continues on an ongoing basis, typically from month to month, after the end of an initial fixed term agreement. This flexible arrangement allows both the Occupant and ShareSorted to continue the ...

    • What is the Difference Between an Occupancy Agreement and a Residential Tenancy Agreement?

      When renting a property in Australia, it's important to understand the type of agreement you are entering into. Two common types of rental agreements are occupancy agreements and residential tenancy agreements. Occupancy Agreement 1. Context of Use ...

    • What is an Occupancy Agreement?

      An occupancy agreement is a type of rental contract used in Australia that outlines the terms and conditions under which an occupant can reside in a property. This agreement is similar to a tenancy agreement but is typically used in different ...

    • How Long Can I Stay?

      When renting a property, it’s essential to understand the terms and duration of your agreement. Here's what you need to know about the minimum and potential maximum duration of your stay. Minimum Agreement Term: 3 Months Minimum The minimum term for ...