If you’re on a month‑to‑month lease in Australia (often called a “periodic tenancy” or “holding over”), it can feel flexible and convenient - until you need to end it or respond to a notice.
That’s where notice periods, service rules and state-based laws come in. Whether you’re a tenant or a landlord, understanding how much notice you need to give (and how to give it properly) will help you avoid disputes, unexpected rent, or even compensation claims.
In this guide, we’ll break down how month‑to‑month leases work, the key differences between residential and commercial arrangements, how notice should be given, common scenarios, and practical options if you need to end a lease sooner.
What Is A Month‑To‑Month Lease?
A month‑to‑month lease is an arrangement that continues in repeating monthly periods until one party validly ends it with notice. You’ll commonly see this in two situations:
- You never had a fixed‑term lease and your agreement has always been periodic (for example, a casual commercial occupancy or a residential periodic tenancy).
- Your fixed‑term lease expired, and you “held over” - meaning you stayed on under the same terms, but now on a monthly basis (often called a holding over clause in commercial leases).
The core idea is simple: either party can end the lease by giving the required notice and following the correct process. The exact notice and process depend on two things - the lease (if there is one) and the law that applies in your state or territory.
How Do Notice Requirements Work In Australia?
Australia doesn’t have a single, national rule for month‑to‑month leases. Instead, notice rules come from your written lease (if you have one) and state or territory legislation. Residential and commercial arrangements are treated differently, so it helps to separate them.
Residential Periodic Tenancies
Residential tenancies are governed by residential tenancies legislation in each state and territory. Those laws set minimum notice periods, which can change depending on who is ending the tenancy and the reason (for example, “without grounds” vs specific grounds like a sale or breach).
Because the numbers differ across jurisdictions and can change, it’s important to check the current rules where the property is located. If you’re in New South Wales, for example, make sure you’re across the formal requirements for lease termination notices in NSW before you act.
Key points to keep in mind for residential periodic tenancies:
- There are minimum notice periods for both tenants and landlords (and they’re not always the same).
- Lawful grounds can reduce or extend the notice period (for example, serious breach by a tenant can allow shorter notice in some cases).
- How you serve notice matters - the legislation often prescribes valid delivery methods and when notice is “taken to be received”.
Commercial And Retail Leases
Commercial and retail leases are contract‑driven. If a fixed‑term lease expires and the tenant remains in occupation, many leases allow “holding over” on a month‑to‑month basis. In a holding over period, the lease usually continues on the same terms except for the term, and the notice period is typically set out in the lease (commonly one month, but not always).
Retail premises (for example, shops in a shopping centre) may also be affected by Retail Leases legislation in your state. For NSW, it’s worth revisiting the principles under the Retail Leases Act (NSW), especially where disclosure, options and end‑of‑term processes intersect with holding over.
If your lease is silent on holding over, common law principles can imply a periodic tenancy based on how rent is paid (e.g. monthly), but it’s safer to rely on clear written terms. A short review can confirm your rights and obligations during the holding over period - a Commercial Lease Review is a quick way to get clarity before you give or respond to notice.
How Much Notice Do Landlords And Tenants Usually Need?
There isn’t a single answer - it depends on the agreement and the jurisdiction. That said, here’s how notice periods are often set in practice:
- Residential (periodic): Minimum notice periods are set by law and vary by state/territory and the reason for termination. “Without grounds” notices and “for cause” notices often have different timelines.
- Commercial (holding over): The lease usually states the notice required for either party to end the month‑to‑month period (often one month, but always check your document). If the lease is silent, a court may look at the rent period and other factors to determine a reasonable notice period.
- Options and renewals: If you’re nearing the end of a fixed term and considering staying on, it’s a good idea to map your timing alongside any option rights or notice windows. In NSW, for instance, many tenants keep an eye on lease renewal notice periods to avoid losing a valuable option while negotiating.
Tip: If you’re not sure whether you’re technically “holding over” or simply in a new periodic tenancy, look at the exact wording of your lease around expiry. Where the lease language is unclear, get advice early - it can affect rent increases, make‑good obligations, and the notice you must give.
Even the right notice period can go off the rails if the notice isn’t served properly. To avoid arguments over dates and validity, focus on three things:
1) Put It In Writing
Residential tenancy laws usually require written notice and specify the information to include (for example, property address, termination date and reason if applicable). Commercial leases typically require a written notice addressed to the other party, sometimes in a particular format.
2) Count The Time Correctly
Notice periods usually run from when the other party is taken to have received the notice, not the date you sent it. Legislation and leases often include “deemed receipt” rules that vary by delivery method (post, email, hand delivery). Build in a buffer so you’re not cutting it too fine.
3) Use A Valid Delivery Method
Check the lease or the applicable legislation for permitted service methods and the address for service. Some leases allow email service; others don’t. If service is disputed, you should be able to prove delivery (for example, registered post, courier or an acknowledgement).
What Should The Notice Say?
While the exact content requirements differ, a well‑drafted notice usually includes:
- Names of the parties and the property address.
- Reference to the agreement (lease or tenancy) and that it’s being ended.
- The termination date (ensuring the minimum notice is met).
- The ground for termination, if a ground is required (residential) or you choose to include one.
- How keys and handover will occur.
If you’re navigating a complex end‑of‑term (for example, make‑good works or a rent dispute alongside termination), it may be worth getting Lease Termination Advice to ensure the notice strategy aligns with your overall negotiation position.
Common Month‑To‑Month Scenarios And What To Do
You Want To Leave A Commercial Premises On Short Notice
Start by checking the holding over clause and the notice you must give. If the required notice doesn’t fit your timeline, a negotiated solution may be available (for example, an agreed early surrender). A formal Lease Surrender Agreement can set out the exit date, make‑good, release, and any compensation - reducing the risk of later claims.
You’re A Landlord And Need The Premises Back
Confirm whether the tenancy is residential or commercial, as the rules differ. For commercial, rely on the lease notice clause; for residential, ensure your reason and timing meet the statutory requirements. In NSW, make sure your notice complies with the expectations for termination notices so it isn’t invalidated.
You’re “Holding Over” And Negotiating A New Fixed Term
Holding over gives you flexibility but also uncertainty. Make sure you keep track of any rent review or market review clauses that may apply even during holding over. If negotiations drag, a well‑timed notice (or stand‑still arrangement) can reduce your risk while you finalise new terms. A quick lease review will highlight leverage points.
There’s No Written Lease At All
It happens - especially in informal commercial occupancies. You still need to follow the applicable law, and your conduct may have created an implied periodic tenancy. The risk profile is higher without clear terms, so consider documenting the exit to avoid disputes about rent, bond and fit‑out. Our guide on the risks of no lease agreements explains why getting it in writing protects both sides.
What If You Need To End It Sooner? Alternatives To Standard Notice
Sometimes the standard notice period doesn’t work. You still have options - just be careful to keep everything lawful and documented.
- Mutual Surrender: The cleanest path is a written surrender document where both parties agree to end the lease early and settle any payments or make‑good. A formal Lease Surrender Agreement makes the exit clear and binding.
- Negotiate A Shorter Notice: Particularly in commercial settings, a landlord may accept less notice in return for a contribution to costs or a tidy handover. Capture the terms in writing.
- End For Breach (Where Applicable): If the other party has seriously breached the agreement, there may be a pathway to terminate earlier. This is technical and risky - get advice about breaking a commercial lease before you act, as a wrongful termination can be costly.
- Retail-Specific Considerations: Retail leases can have additional protections and procedures. In NSW, for example, retail leasing rules can impact how and when you end or renew - revisit the Retail Leases Act context when planning an early exit.
If you’re in a residential setting, statutory rules around early termination apply (for example, for hardship or breach). The details vary - always check the current requirements in your jurisdiction before acting.
Practical Tips To Avoid Disputes
- Read The Lease First: For commercial and retail premises, the lease usually sets the notice period, service method and holding over rules. Don’t rely on assumptions.
- Diary The Dates: Work backward from the intended vacate date and include a buffer for service and deemed receipt rules.
- Keep It In Writing: Confirm conversations by email and keep copies of notices and proof of delivery.
- Plan The Handover: Keys, condition reports, make‑good and final payments should be agreed upfront to avoid last‑minute friction.
- Use The Right Document: If you’re ending early by agreement, a simple email may not be enough. A structured surrender or variation avoids confusion later.
- If In Doubt, Get Advice: A short consult can save weeks of back‑and‑forth and reduce the chance of claims. If you’re weighing early exit routes, our overview of legal ways to break a lease is a helpful starting point.
Key Takeaways
- Month‑to‑month leases (periodic tenancies and holding over) continue until a party ends them with valid notice under the lease and applicable law.
- Residential periodic tenancies are governed by state and territory laws with minimum notice periods that change by jurisdiction and reason.
- Commercial and retail holding over is usually controlled by your lease - check the clause to confirm notice length, service method and any rent review.
- Serve notice properly: use the required form, count time from receipt, and use a valid delivery method you can prove.
- If standard notice doesn’t suit your timing, consider a negotiated surrender or seek advice on other lawful exit options before taking action.
- Clear documents and early advice reduce disputes over rent, make‑good and handover - especially when you’re exiting on a tight timeline.
If you’d like a consultation about notice requirements or ending a month‑to‑month commercial lease, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.
