Breaking Clause in the agreement

Landlord Discussion
1

Hi, I was wondering if someone can kindly guide me. I am unclear about the below clause:

12.3. If neither party serves a valid notice to terminate the tenancy at the end of the Initial Term, the parties
agree that at the end of the Initial Term the tenancy will continue as a contractual periodic tenancy on a monthly
basis.

does it mean if the tenant doesn’t give notice after the initial term which is 4 months in my case, they will have to wait for the fixed term to finish (12 months)? what does the monthly basis mean in the above clause?

thanks in advance.

regards,
Aman

2

No, it doesn’t mean that. The fixed term and the initial term are effectively synonymous, so if you have an initial term of 4 months specified in the contract, you don’t have a 12 month term at all, you have a 4 month term and the tenancy then becomes periodic.