Types of tenancies
Starting, renewing & ending
If you are beginning your journey as a landlord in New Zealand, it is important to know the different types of tenancies available, how they work, and your contractual obligations under each one.
All Hammond & Co tenants begin their tenancy on a fixed-term tenancy agreement. This type of lease lasts for a set period of time. While there is no limit on how long they can run for, a fixed-term tenancy is typically 6 or 12 months.
Unlike a periodic tenancy, a tenant cannot give notice to end a fixed-term tenancy. To make changes to the agreement, including an earlier end date, both the landlord and tenant must agree to an arrangement. If a landlord agrees to an earlier end date, tenants can expect to be liable to cover certain costs until the property is re-tenanted.
Tenant costs can include:
- Advertising costs
- Property maintenance they would typically be responsible for
- Maintaining a supply of services, such as power, if needed
If a tenant wishes to leave their rental property early, their Hammond & Co property manager will discuss any options that may be available for their consideration. At the close of the agreed time frame, the tenancy will automatically roll over to a periodic tenancy unless the tenant provides a 28 day notice in writing, both parties come to an alternate agreement, or the tenant exercises their right to renew if applicable.
When you partner with Hammond & Co, we seamlessly manage this process to ensure a stress-free transition for landlords and tenants.
A periodic tenancy agreement has no end and continues until either the tenant or landlord gives written notice to end it.
How can a tenant end a periodic tenancy?
If a tenant wishes to end a periodic tenancy, they must provide a written letter of termination 28 days in advance unless the landlord agrees to a shorter duration.
How can a landlord end a periodic tenancy?
In general, landlords are required to give a minimum of 90 days written notice to end a tenancy. That said, there are situations where you can provide a 63 day notice period, including the below:
- The property has been sold, and the new buyer wants a ‘vacant property’
- The owner or a member of their family is going to live in the property for 90 days or more
- The property is typically used as employee accommodation and is needed again for that purpose
If the landlord decides to end a periodic tenancy and the tenant decides they would like to move out sooner, the tenant still needs to provide a written notice 28 days in advance.
When a tenant ends a periodic tenancy, Hammond & Co will confirm the details in writing to the landlord and outline the next steps involved. We will then relist the property, take care of all the documentation necessary to end the tenancy, and arrange prospective tenant property viewings with the current tenant.
Occupancy and tenancy agreement changes
Only those included in a tenant’s rental application and tenancy agreement can live permanently in a Hammond & Co rental property. If one of the existing leaseholders wishes to move out or be replaced during the tenancy, Hammond & Co will manage the updates for this change.
In the case of replacement, we will have any new tenants complete an application and forward this to the landlord for review and acceptance at their discretion.
If you have questions about fixed term or periodic tenancies, please email us at firstname.lastname@example.org.Download this resource