Periodic Rental Agreement Alberta: What You Need to Know
If you`re planning to rent a property in Alberta, then you should know about the periodic rental agreement. This type of rental agreement is commonly used in Alberta and is a great option if you`re not looking for a long-term rental commitment.
In this article, we`ll take a closer look at what a periodic rental agreement in Alberta is, its benefits and drawbacks, and what you should know before signing one.
What is a Periodic Rental Agreement?
A periodic tenancy, or periodic rental agreement, is a rental agreement that automatically renews at the end of each rental period (usually monthly). This means that the agreement will continue until one of the parties (either the landlord or tenant) provides written notice to terminate it.
Periodic rental agreements are a great option for both landlords and tenants who want flexibility. For landlords, they can easily terminate the agreement if they need to sell the property or if they want to find new tenants. For tenants, they can move out with minimal notice when they need to without the financial burden of breaking a long-term lease.
Benefits of a Periodic Rental Agreement in Alberta
Flexibility: As mentioned earlier, a periodic rental agreement offers flexibility for both landlords and tenants. The tenant can leave without a long-term commitment, and the landlord has the option to change the terms or end the tenancy with short notice.
Lower costs: Periodic rental agreements usually require lower upfront costs because there`s no need to pay for a long-term lease agreement. This can be especially helpful for tenants who don`t have a large amount of savings or want to test the waters in a new location.
No long-term commitment: For tenants who are unsure if they want to stay in a specific location for an extended period, a periodic rental agreement offers an excellent solution. They can continuously renew the agreement until they`re ready to move out.
Drawbacks of a Periodic Rental Agreement in Alberta
Rent increases: A periodic rental agreement may also mean that the rent can be increased at the end of each rental period. This is because the landlord has the freedom to change the terms of the agreement during each renewal.
Unstable living conditions: Unlike long-term leases, tenants in periodic rental agreements may have to move out with short notice if the landlord decides not to renew the agreement.
Unclear terms: Since periodic rental agreements can be verbal or written, they may not be as clear as other types of rental agreements. This can lead to misunderstandings between tenants and landlords.
Key Things to Know Before Signing a Periodic Rental Agreement
Before signing a periodic rental agreement, there are a few things that you need to know. Firstly, you should understand that you may have to move out with short notice if the landlord decides not to continue the tenancy. Secondly, you should make sure that all the terms of the agreement are clear and in writing. Lastly, you should understand that the rent may increase at the end of each rental period.
Conclusion
A periodic rental agreement is an excellent option for both landlords and tenants who want flexibility and lower upfront costs. While there are drawbacks, such as rent increases and unstable living conditions, if you`re looking for a short-term rental solution, then a periodic rental agreement in Alberta might be the right choice for you. As always, it`s essential to read and understand the terms of the agreement before signing.