More Flexibility for Ending Tenancies

Date: 12 May 2025

Fixed Term or Periodic – now that things have Changed

With the latest changes to the RTA, flexibility has been restored for landlords. You are no longer required to give a specific legal reason to end a fixed term tenancy. The following options now apply to all fixed terms that expire after May 1st 2025

Ending or renewing a fixed-term tenancy

  • The tenancy can roll over into a periodic tenancy (no action required);
  • It can be renewed or extended for another fixed term (by agreement);
  • The tenancy can be ended at expiry (by giving written notice within the effective period).

This means either party can now choose to end the tenancy without needing to give a specific legal reason - but only if they give notice at the right time.

What Is the “Effective Period”?

To validly end a fixed-term tenancy at expiry, written notice must be given no earlier than 90 days and no later than 21 days before the tenancy end date. This applies to both landlords and tenants.

Example:
Tenancy end date: 1 August 2025
Valid notice period: Between 3 May and 11 July 2025.
If neither party gives notice during the effective period, and the tenancy is not renewed, the tenancy will automatically become periodic.

No reason required

One of the key changes is that no reason is required by a landlord to end the tenancy during the effective period. As long as the correct notice is served within the window, landlords and tenants can end the tenancy at expiry - without having to justify why.

Timing and fairness

While 21 days is the legal minimum, we strongly recommend landlords aim to give notice as early as possible - ideally closer to the 90-day mark. For many tenants, three weeks is simply not enough time to secure alternative accommodation. Early notice helps reduce stress and avoid last-minute issues for everyone involved.

Serving the notice

To be valid, the notice must:

  • Be in writing;
  • Clearly state that the tenancy will end on the expiry date;
  • Be served using a method agreed in the tenancy agreement (such as email or post).

If the notice is given too early, too late, or served incorrectly, it may not be enforceable - so attention to detail is essential.

Pros and Cons of Fixed Terms

  • More certainty of income;
  • A good choice for a long-term hold;
  • If a tenant wants to break a fixed term early, the landlord needs to agree, the tenant is responsible for the costs associated with reletting the property and for paying rent until a replacement tenancy starts;
  • A landlord cannot end a fixed term early unless they can prove hardship or the tenant and landlord agree to end the tenancy early;
  • Landlords can apply to terminate a fixed term early where the tenant is breaching the tenancy agreement, in rent arrears, threatening, damaging beyond fair wear and tear etc.

Pros and Cons of Periodics

  • Where owner plans are a bit "up in the air" then a periodic is worth considering;
  • Notice can be given any time and as per fixed terms, no reason is required;
  • Periodics offer a bit more flexibility for both parties.

Speak with your Harcourts Taupo Rentals Property Manager to see what suits your situation best.

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More Flexibility for Ending Tenancies