What happens if the tenant does not want to renew the tenancy agreement when it expires?

This can be quite a common situation. As the owner of the property it is important to understand that when a fixed term agreement comes to an end, there is still a tenancy in place and the same tenancy agreement terms and conditions apply.  Both the tenancy agreement and the Act allow for a fixed term to revert automatically to a continuing/periodic tenancy at the end if it is not ‘renewed’ for a further fixed period.

While there are some differences in the notice periods required for the two types of agreements, there are no other differences. So you have the security of knowing that if the tenant does not meet their obligations the same remedies apply to both fixed term and continuing/periodic.

As a first step in the renewal discussion process, your property manager will ask the tenant why they do not wish to renew. Often there may be a legitimate reason, such as that they are in the process of purchasing a property. If a tenant does not agree to a renewal of a fixed term at the end of a tenancy, you have two options: terminate the tenancy, or allow the tenant to stay on as a continuing/periodic tenant.

While there are advantages to having a fixed agreement with your tenant, it may be  better to have a continuing/periodic tenancy than no tenancy at all. In deciding the outcome you should look at the length of time that the tenants have resided in the property,  whether they have paid rent on time, and whether they are a good quality tenant.