Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

Fixed term 'probation' period

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Fixed term 'probation' period

    I was considering an idea to offer a new tenant a 3 month fixed term tenancy for the purposes of acting as a probation period. If the tenant turns out to be bad then I can get rid of then after 3 months. If the tenant turns out to be good then the fixed term tenancy can revert to a periodic tenancy and the tenant can stay.

    Has anyone done this before? Any issue with this?

    Also, if I decided to remove them at the end of the 3 month period, how much notice do I need to give? I think I have to give about a month but dont know the exact rules here.

    Thanks in advance.

  • #2
    Originally posted by RentMaster View Post
    I was considering an idea to offer a new tenant a 3 month fixed term tenancy for the purposes of acting as a probation period. If the tenant turns out to be bad then I can get rid of then after 3 months. If the tenant turns out to be good then the fixed term tenancy can revert to a periodic tenancy and the tenant can stay.

    Has anyone done this before? Any issue with this?

    Also, if I decided to remove them at the end of the 3 month period, how much notice do I need to give? I think I have to give about a month but dont know the exact rules here.

    Thanks in advance.
    Hello Andrew,

    This has been discussed before a couple of times.

    You do not need to give any notice at the end of a FTT - end date is end date. However. reality (and possibly courtesy would suggest a month or so.

    Don't forget that they can go after three months anyway, even if they are good tenants, so it might work against you.

    Personally I don't like this trial period thing, I think initial tenant selection is where you should do the work.

    xris

    Comment


    • #3
      Originally posted by RentMaster View Post
      I was considering an idea to offer a new tenant a 3 month fixed term tenancy for the purposes of acting as a probation period. If the tenant turns out to be bad then I can get rid of then after 3 months. If the tenant turns out to be good then the fixed term tenancy can revert to a periodic tenancy and the tenant can stay.

      Has anyone done this before? Any issue with this?

      Also, if I decided to remove them at the end of the 3 month period, how much notice do I need to give? I think I have to give about a month but dont know the exact rules here.

      Thanks in advance.
      I've done it. But only in low end markets. The thing you need to keep in mind is that there is always another tenant.

      I use three month contracts one, to protect the tenant and give him/her an out after a short period of time. Two, what is the point of tying a tenant to a contract for long-term if he/her can't or won't pay? Most low-end tenants always have some issue that comes up -- and all of a sudden the rent is late or they are gone. It is better to be rid off them sooner than later. The bottom line is: are you really going to get any money from tenants if they break your lease? Are you really going to go through the worry and pain of chasing deadbeats? My motto is: move on and put it behind you, life is too short.

      You will find a short term lease tends to empower the tenant -- it makes him/her a better tenant if they know you are not holding anything over them.

      Best way to find out for yourself is try it. What will it hurt?
      Erewhon is still erehwon, I don’t see it changing anytime soon.

      http://exnzpat.blogspot.com/

      Comment


      • #4
        Originally posted by RentMaster View Post
        I was considering an idea to offer a new tenant a 3 month fixed term tenancy for the purposes of acting as a probation period. If the tenant turns out to be bad then I can get rid of then after 3 months. If the tenant turns out to be good then the fixed term tenancy can revert to a periodic tenancy and the tenant can stay.

        Has anyone done this before? Any issue with this?
        How is it going to "revert to a periodic" tenancy?

        a) if it is written into the TA that it reverts to a periodic tenancy then it does. You, as the landlord, have no choice.

        b) if it doesn't get written into the TA then all you have is a FTT. Nothing different there.

        c) if you "say" it "could" revert to a periodic tenancy then you could be sitting in the TT should you decide to terminate the tenancy at the end of the FT.

        I suggest if you wish to have the FTT then, if happy with the tenants, advise them a month from the expiory of the FTT that you would like them to stay.

        Better do do as xris suggests.

        Learn how to pick tenants. Make your selection criteria strict. Spend weeks getting them in, not months getting them out.

        I prefer periodic tenancies.
        Last edited by Keys; 05-12-2007, 06:26 AM.
        www.3888444.co.nz
        Facebook Page

        Comment


        • #5
          I did end up signing these tenants on a periodic tenancy instead of a fixed term. Their references were OK. But after I got to meet the rest of the family I decided that they seemed like good people and their reason for moving checked out so I think I have got a good tenant.

          But it was interesting to hear other peoples opinions on the matter. Thanks.

          Comment

          Working...
          X