How do I renew or end a tenancy agreement

Knowing your rights as a tenant when it comes to ending or renewing a tenancy agreement is one of the most common things the REIWA Information Service assists the WA public with.

It is a good idea to familiarise yourself with your options before you get to the end of the lease agreement.

Renewing a rental lease

Renewing a lease occurs when your current tenancy agreement expires. If there are no rent increases or changes to terms then the process is pretty straightforward.

If you are happy in your rental, then a safe and easy option is to renew your lease for another six or 12 months (or another agreed time).

Renewing a lease with no rent increase

If the landlord agrees to a lease extension with no rent increase for another fixed period of time, then that agreement should be reflected in writing. This is usually in a REIWA form that your agent should provide for this purpose.

Renewing a lease with a rent increase

If a landlord plans to increase the rent with the current tenants staying on, they must negotiate the rent increase prior to the end of the lease.

The agreement as to the extended lease period and the new rent should be reflected in writing. If you have agreed upon any other new terms eg. a pet then those terms must be included in the agreement.

The rent cannot be increased during the first 30 days of a new lease period.

Ending a rental lease

The process for ending a tenancy comes down to whether you have a periodic lease or a fixed-term lease.

Terminating a periodic lease

A periodic tenancy is an agreement that runs for an indefinite length of time; there is no set finishing date.

You can end your periodic lease at any time after giving the landlord, through the property manager, 21 days' notice. The notice you give must:

• Be in writing
• State the address of the rented premises
• State the date you will vacate the premises
• Include your name, signature and date

The written notice can be either a letter or a Form 22: Notice by tenant of Termination.

If the landlord/property manager wants you to leave, they must give you a minimum of 60 days' notice using a Notice of termination (Form 1C).

Of course, if you are sending the notice by post, it's best to add six working days extra to the notice period to account for delivery times, and if in your lease you have agreed to have notices served by email, you should follow up with the property manager to confirm they have received the email and are aware of your intent to end the lease.

Terminating a fixed-term lease

A fixed-term tenancy agreement specifies a start and finish date to reflect the minimum length of time you agree to stay in the property. Most fixed-term leases are for six to 12 months (or the agreed period of time) which is agreed to at the start of the tenancy.

Terminating a lease early becomes significantly more complicated if you are on a fixed-term lease, as there is no automatic right of termination. If, as a last resort, you need to break a fixed-term lease, you should seek the landlord's permission (via your property manager if the property is professionally managed).

In this instance, the landlord will often agree to a termination at a point-in time when an alternative tenant commences a new lease. In other words, the owner is looking for a smooth swap, minimum fuss and no costs incurred.

The Residential Tenancy Agreement is a legal contract and the owner is entitled to seek an outcome where their financial position is no worse off as a result of a tenant breaking their tenancy agreement. Subsequently, the owner is entitled to claim compensation for any financial loss incurred as a direct result of the breach.

If a replacement tenant has not been found by the time you move out, you are liable to continue paying rent and maintain the premises until a new tenant has taken up residency or the original end date of your fixed-term lease expires. In addition, as is the case at the end of every lease, the property manager will conduct a final inspection and compare the condition of the property to the original Property Condition Report.

If a tenant has been found, but the amount they have negotiated to pay per week is less than what you are currently paying, you may be required to pay the difference up until the point your original lease would have concluded.

What happens when your fixed-term tenancy agreement comes to an end?

Your fixed-term tenancy agreement will not automatically terminate on the expiry date unless you or are the landlord/property manager gives the other 30 days' written notice of termination.

Are you a tenant? Here are eight of the most common tenant questions answered by the REIWA Information Service.

Or if you are looking for a rental, see what's for rent in Perth.