What does it mean?
A fixed-term lease has a specific end date and expires without notice when the term runs out. This contract type is often used for subletting, temporary work contracts, or when the landlord has specific reasons to limit the agreement period. The Tenancy Act permits fixed-term agreements, but the rules regarding security of tenure are affected.
If a fixed-term agreement runs for more than two consecutive years, the tenant generally develops security of tenure, and the agreement must then be formally terminated to end. Agreements that are repeatedly extended may also be deemed indefinite contracts by the Rent Tribunal. It is important to clearly state the start and end dates as well as any renewal terms in the agreement.
Key Points
- Expires automatically at the agreed date without notice (under two years)
- Security of tenure generally arises after two consecutive years of tenancy
- Repeated extensions may cause the contract to be deemed indefinite
- Does not require legitimate grounds for non-renewal (below tenure threshold)
- Common for subletting and temporary employment situations
Practical Tip
If you sign a fixed-term lease, be clear about whether you risk losing security of tenure. Agreements under two years normally provide no security of tenure. Plan your housing situation well before the contract expires.
Legal Basis: 12:3 JB (fixed-term agreements), 12:45-46 JB (security of tenure)
Based on content from Bofrid's Knowledge Bank