When renting a property in New Zealand, tenants and landlords can choose between two main types of tenancy agreements: fixed-term and periodic. Each type has its own set of rules, benefits, and requirements, particularly concerning the notification periods for ending the tenancy. In this blog, we’ll explore the differences between fixed-term and periodic tenancies and outline the notification periods for both.
Fixed-Term Tenancy
A fixed-term tenancy is an agreement for a specific period, such as six months or one year. The tenancy automatically ends at the conclusion of this period unless both parties agree to renew or extend it. Here are some key points about fixed-term tenancies:
- Security and Stability:
- Fixed-term tenancies provide both landlords and tenants with security and stability. The rent amount and terms are locked in for the duration of the tenancy, providing predictability.
- Ending a Fixed-Term Tenancy:
- A fixed-term tenancy cannot be terminated early without the agreement of both parties. If both the landlord and tenant agree, the tenancy can be ended early, but conditions may apply. Otherwise, the tenancy automatically ends on the specified end date.
- Transition to Periodic Tenancy:
- If neither party gives notice to end the tenancy at the end of the fixed term, the tenancy automatically becomes a periodic tenancy.
Notification Period for Fixed-Term Tenancy:
- Landlords: Landlords cannot end a fixed-term tenancy early unless both parties agree or under special circumstances outlined in the Residential Tenancies Act (RTA), such as the property being uninhabitable.
- Tenants: Tenants also cannot end a fixed-term tenancy early without the landlord’s agreement. However, they can negotiate with the landlord if they need to leave before the end of the term.
Periodic Tenancy
A periodic tenancy, also known as a rolling tenancy, does not have a set end date. It continues indefinitely until either the landlord or tenant gives notice to end it. Here are some key aspects of periodic tenancies:
- Flexibility:
- Periodic tenancies offer greater flexibility for both landlords and tenants. They can be ended at any time with the appropriate notice, making them ideal for those who may need to move or adjust their living situation on short notice.
- Ending a Periodic Tenancy:
- Either party can end the tenancy by giving the required notice. The notice period and conditions depend on whether the property is being sold, renovated, or re-occupied, among other factors.
Notification Period for Periodic Tenancy:
- Landlords:
- If the landlord wants to end the tenancy without a specific reason, they must provide at least 90 days’ notice.
- If the property is being sold with vacant possession, the landlord must provide at least 90 days’ notice after the sale agreement becomes unconditional.
- If the landlord or a member of their family wants to move into the property, they must provide at least 63 days’ notice.
- If extensive renovations or demolition are planned, the landlord must provide at least 90 days’ notice.
- Tenants:
- Tenants must provide at least 28 days’ notice if they wish to end the tenancy. This notice must be in writing and delivered to the landlord.
Conclusion
Understanding the differences between fixed-term and periodic tenancies is essential for both landlords and tenants. Each type offers distinct advantages and requirements, especially concerning the notification periods for ending the tenancy. Whether you prefer the stability of a fixed-term tenancy or the flexibility of a periodic tenancy, it’s crucial to be aware of your rights and responsibilities.
At NG Property Management, we provide comprehensive support and guidance for both landlords and tenants, ensuring that all parties are well-informed and compliant with the Residential Tenancies Act.
Disclaimer: The information provided in this blog is for general informational purposes only and should not be construed as legal advice. NG Property Management is not liable for any actions taken based on the content of this article. For specific legal advice or guidance, please consult with a qualified legal professional or the relevant authorities.
