This question is from Samara (paraphrased to suit this format):
My fixed-term tenancy is about to end next month. The landlord asked me if I want to extend or renew the tenancy agreement. What are the differences between the two?
An extension kicks out the expiry of the agreement to a future date whereas a renewal is a new contract binding you and the landlord into a new fixed-term tenancy agreement. Some practical matters for both parties to consider:
| EXTENSION | RENEWAL | NEW FIXED-TERM | |
| NOTICE | Written notice to the landlord at least 28 days before expiry (assuming agreement contains a right to extend and absent a mutual agreement) | Written notice to the landlord at least 28 days before expiry (assuming agreement contains a right to renew and absent a mutual agreement) | N/A |
| TERM | =/≠ original agreement | = original agreement | =/≠ original agreement |
| DOCUMENTATION | Record (in writing) and sign the extension either as an agreement or extend or variation to the original agreement | Record (in writing) and sign the renewal either as an agreement to renew or a tenancy agreement | Sign a new tenancy agreement |
| RENT INCREASE | Only if there is a rent increase provision in the agreement and s24 rules are followed otherwise no rent increase | Only if there is a rent increase provision in the agreement and s24 rules are followed otherwise no rent increase | The landlord can set new/higher rent |
| HHS ENTITLEMENTS | If the agreement predates 1 July 2021 then the property does not need to comply with the HHS until 2024 (assuming no new agreement is entered into between now and then) | Property has to comply with HHS within 90 days of renewal | Property has to comply with HHS within 90 days of the new tenancy |
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The tenancy will terminate if the tenants vacate at the end of the fixed term. It will be no more. … The tenants no longer have any responsibility under the lease and the landlord no longer has any right to charge rent. If the tenants depart without giving notice, landlords are frequently irritated.
Incorrect. Vacating does not constitute termination. The tenancy subsists until termination.