Is your tenancy agreement coming to an end or are you starting a new one and you’ve seen two options on your contract? Check out the information below so you know options are on the table.
Wondering why we are talking about periodic and fixed term tenancies? On February the 11th 2021 changes made to the Residential Tenancies Act came into force. One of these changes is that any fixed term tenancy agreement that started on or after that date will automatically become a periodic tenancy.
For most people a periodic tenancy, which has no fixed start or end date, will be a better option. In the cases where people need a specific start and end date they may be better suited going on a fixed term tenancy.
Periodic tenancies will suit most people because there are only a finite list of reasons that a landlord can end a periodic tenancy, while you still have the flexibility to provide notice of 28 days’ should you want the tenancy to end.
If your fixed term tenancy is coming to an end, your original tenancy agreement (not an extension) started on or after the 11th of Feb 2021, and you want to continue in the property you are legally entitled to continue under a periodic tenancy.
If you need more help deciding between the two check out the information below or contact one of our friends for some personal advice.
A periodic tenancy is an ongoing agreement, without a fixed end date. If you sign onto a periodic tenancy it will continue until you or your landlord provide notice to end the tenancy. A periodic tenancy agreement may include text similar to:
“This is a periodic tenancy and may be ended by either party giving notice as required under the Residential Tenancies Act 1986. The tenancy will start on dd/mm/yyyy”
A periodic tenancy can be ended using any of the reasons listed in the Residential Tenancies Act. Below we’ve provided the list in plain english, collated at the time of writing.
You (the tenant) can end a periodic tenancy if every tenant named on the agreement agree on a set move out date. To end a periodic tenancy, you must give notice of at least 28′ days and it has to be in writing (email, or post). The written notice must contain the address it relates to, the date you wish to end the tenancy, and be signed by all the tenants listed on the tenancy agreement.
Landlords can end a periodic tenancy if:
In each case the landlord must provide no less than 90 days’ notice in writing. The written notice must contain the address it relates to, the date the tenancy is due to end, the reason the tenancy is ending, and be signed by the landlord.
A fixed term tenancy is an agreement that has a defined period of time in the agreement, or start and end dates. An example in an agreement might read like:
“This tenancy is for a fixed-term. The tenancy will start on dd/mm/yyyy and will end on dd/mm/yyyy.”
In Aotearoa New Zealand, fixed term tenancies are often offered at a length of 12 months, but come in all sorts of different lengths.
It’s difficult for either party to end a fixed term tenancy early. Ending a fixed term tenancy requires the agreement of both parties, or an order made by the Tenancy Tribunal.
It is common for landlords in Aotearoa to charge a fee for breaking the lease early, but unless you have in writing from the landlord that paying that fee will resolve your responsibility for paying rent you will be liable for paying rent until the fixed term ends.
In rare cases a fixed term tenancy can be ended early due to severe hardship. In this event you should talk to your landlord first, but if it gets taken to the tribunal you will need to prove an event has occurred during the tenancy that you couldn’t have expected when you signed, and that this event will cause you serious hardship.
If your original tenancy agreement (not extension) started on or after the 11th of Feb your fixed term tenancy will automatically convert to a periodic tenancy unless:
For most people a periodic tenancy will be a better fit, but if you would like to renew for another fixed term this has to be mutually agreed between you and the landlord.
If your original tenancy agreement (not extension) started on or after the 11th of Feb your landlord can not refuse to offer you a periodic tenancy since your fixed term will automatically become a periodic tenancy.
If your original tenancy agreement (not extension) started before the 11th of Feb your fixed term tenancy will not convert to a periodic tenancy. This means that if you want to stay on you must come to a mutual agreement with your landlord for either another fixed term, or for a periodic tenancy which will be a better fit for most people.
If your original tenancy agreement (not extension) started on or after the 11th of Feb your fixed term tenancy will automatically convert to a periodic tenancy unless:
This means that you will either need to come to an agreement with your landlord, or provide a written notice (email or mail) at least 28′ days in advance. The written notice must contain the address it relates to, the date you wish to end the tenancy (can be your original end date or later, but not earlier than your original end date), and be signed by all tenants listed on the tenancy agreement.
If your original tenancy agreement (not extension) started before the 11th of Feb your fixed term tenancy will not convert to a periodic tenancy. You do not have to provide notice to end your tenancy, it will automatically end, unless mutually agreed otherwise between you and your landlord.
The information above does not constitute legal advice, if you need advice please reach out to one of our friends for free at rentersunited.org.nz/help
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