APIA Ask An Expert

 

 

I have a fixed-term tenant who is using the (residential) rental as a massage clinic.  Now that the fixed-term is over, the tenant is requesting for
another two years of fixed-term tenancy.  I read from the template tenancy agreement that the property has to be used principally for residential
purposes.  That is not the case here.  I do want to keep her as a tenant.  If I sign the fixed-term agreement as it is, would that be
voided because I have knowledge of her not using the property for residential purposes?  If I do not sign the fixed-term agreement, would the
tenancy roll over as a periodic tenancy? Should I sign a commercial tenancy agreement with her in this case?

 

 

APIA Ask An Expert

 

 

The Residential Tenancies Act and the standard tenancy agreement are for properties that the tenant mainly use as a place to live. However, under the standard
agreement allows tenants to also use the property for a business, as long as this is not the main use of the property. There may also be Council requirements
around how the business can be operated on a particular property and whether the property can be used to operate a business.

If a tenant wishes to use a property to operate a business as well as a place to...