Tenancy Law Changes | Tenancy Terminations - How They Affect You

Understanding Tenancy Terminations: Key Changes

As of 30 January 2025, several important changes were introduced regarding tenancy terminations. Here’s what landlords and tenants need to know:

Periodic Tenancies

For periodic tenancies, landlords will be able to terminate the agreement with ‘no cause’ by providing 90 days' notice.

However, landlords can also end a periodic tenancy with 42 days’ notice if:

• The property is needed as the owner’s principal place of residence, or for a family member, within 90 days of the tenancy ending, with a commitment to live there for at least 90 days.
• There is an unconditional sale agreement requiring the premises to be vacant.
• The property is required for use by the landlord’s employees or contractors, as specified in the current tenancy agreement.

Tenants, on the other hand, can end their periodic tenancy with 21 days’ notice.

Note: If a termination notice has already been given before 30 January 2025, that notice remains valid. It cannot be adjusted or replaced with a different notice period after the new regulations come into effect.

For example, if a landlord has given 63 days’ notice before 29 January 2025, they cannot change the notice to 42 days after 30 January 2025.

Additionally, landlords are prohibited from issuing termination notices in retaliation to tenants exercising their legal rights. If a landlord does so, the notice could be overturned, and the landlord could face exemplary damages. As of 30 January 2025, this provision has been clarified further, extending the period for tenants to seek exemplary damages to 12 months.

Fixed-Term Tenancies

Ending fixed-term tenancies will become more straightforward, but landlords still need to take action if they want the tenancy to end.

Fixed-term tenancies will automatically convert into periodic tenancies unless:

• Either the landlord or tenant gives notice to end the fixed-term tenancy between 90 and 21 days before the fixed term ends, with no specific reason required.
• Both the landlord and tenant agree to another arrangement.

For tenancies that began on or after 11 February 2021 and end before 30 April 2025, the existing rules will apply. For those expiring on or after 1 May 2025, the new regulations will be in effect.

Retaliatory Terminations

If a landlord ends a tenancy in retaliation for a tenant exercising their rights, the tenant can challenge this through the Tenancy Tribunal. This includes situations where a tenant requests maintenance, and instead of fulfilling the request, the landlord issues a termination notice.

This provision also applies if the termination is due to actions taken by Tenancy Services or any other legal power under the Residential Tenancies Act 1986 or related legislation.

Tenants have 12 months from the termination notice to apply to the Tenancy Tribunal. If they apply within 28 working days, they can also request that the notice be cancelled.

These changes that were effective from 30 January 2025, will impact both landlords and tenants, and it's crucial to stay informed about these new rules. If you need more guidance on tenancy terminations, don’t hesitate to get in touch with i-Rentals - your locally owned and family operated Property Managers for Whangarei and Northland.

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