In South Australia, a periodical lease is a type of rental agreement that continues indefinitely until either the landlord or the tenant decides to end it. Unlike a fixed-term lease with a set end date, a periodical lease automatically renews at the end of each rental period (e.g., monthly). This can provide more flexibility for both parties, but it's crucial to understand the notice requirements and other legal aspects involved.

Key Features:

• No fixed end date: The lease continues until terminated by either party.
• Automatic renewal: It renews at the end of each period (e.g., every month) with the same terms unless changes are agreed upon.
• Notice periods: Specific notice periods must be given to end the lease, which vary depending on the circumstances.

Notice Requirements:

• Tenant's notice: A tenant must give at least 21 days' written notice to end a periodical lease, regardless of the reason.
• Landlord's notice:
  • Perscribed reasons: 60 days' written notice, along with supporting documents outlined by regulations. such as the property being sold or needing significant renovations. 
  • Specific reasons: 90 days' written notice, but the landlord must have a valid reason allowed under the Residential Tenancies Act 1995 (SA), the tenant kept a pet without consent
  • Breach of agreement: 7 days' notice if the tenant breaches the agreement and not remedied (e.g., unpaid rent, property damage).

Important Considerations:

• The Residential Tenancies Act 1995 (SA): This Act governs all residential tenancies in South Australia. It's essential to understand your rights and obligations under this Act.
• Written agreement: While a periodical lease can be verbal, it's highly recommended to have a written agreement outlining the terms and conditions.
• Condition report: A detailed condition report should be completed at the start of the tenancy to avoid disputes later.
• Less security: The tenant can leave with proper notice, potentially leaving the property vacant.
• More frequent turnover: Potentially higher costs associated with finding new tenants.
• Termination by Perscribed Reason: There are limitations on being able to re-market the property for rent for up to 6 months.

Need More Information?

For further information and resources, please refer to the following. Alternatively feel free to reach out to our office to discuss.

• Consumer and Business Services (CBS) website: https://www.cbs.sa.gov.au/
• Residential Tenancies Act 1995 (SA): https://www.legislation.sa.gov.au/LZ/C/A/RESIDENTIAL%20TENANCIES%20ACT%201995.aspx
• Legal Services Commission of South Australia: https://www.lsc.sa.gov.au/