Fixed Term Vs Periodic Tenancy; Which Should I Choose?

Learn the differences between a fixed term and a periodic tenancy, plus information on how
to choose the right tenancy type for you, directly from one of Auckland’s top property management
In New Zealand, landlords can choose between two main types of tenancies: the fixed term and the
periodic tenancy. Both have their purposes, along with their pros and cons. Today we’ll discuss the
differences between these two tenancy types to assist you in choosing the right one for your
Auckland rental property.

Differences Between a Fixed Term & a Periodic Tenancy

As the landlord, it’s ideally your decision as to the type of tenancy you’d prefer to have with your
rental. Whether you choose to go with a periodic or fixed term tenancy greatly depends on your
circumstances. To explain why, let’s look at each type of tenancy separately.
 A periodic tenancy is an agreement between you and your tenant which has no end date. It
will continue until either one of you gives written notice that the tenancy will end. There is
no need to renew a periodic tenancy, and it can be ended upon 21 days written notice by
the tenant, and either 42 or 90 days by the landlord depending on circumstances. This
tenancy type is best for when the landlord’s circumstances are uncertain, such as you’re
unsure if you are selling the property or not. It also suits tenants who wish to have the
option to move on quickly.
 A fixed term tenancy is an agreement between you and your tenant for them to rent your
property for a set amount of time, longer than 90 days, but usually around 12 months long.
Neither the landlord or the tenant can end a fixed term tenancy early unless the contract
allows for it, through agreement or a Tenancy Tribunal ruling. If the landlord wishes to sell
their property, they must wait until the fixed period has finished, arrange for the buyer to
take over the tenancy agreement or have the tenant agree to end the rental agreement. A
tenant may end the agreement early if they have the agreement of the landlord or if they
find another tenant willing to take over the agreement. The landlord can charge the tenant
for the costs of re-advertising the property or missed rent. A fixed term tenancy best suits a
landlord whose circumstances are certain and provides both the tenant and the landlord the
knowledge that the home will be rented for a specific time period. Once the fixed term is
over (and the period was longer than 90 days), this type of tenancy will automatically
become a periodic tenancy unless either party gives notice or both parties agree on another
way forward.

Need Help Deciding On Which Type of Tenancy to Use?

As property managers of rental properties throughout the North Shore, Remuera Hibiscus Coast and
Central Auckland areas, we help our landlords with plenty of tenancy agreements. Let us take away
the hassle of managing your property and help you decide upon the best type of tenancy for you and
your property. Our full rental property management service takes away all the stress and effort of
managing your rental! Contact us or book a free rental appraisal today to start enjoying an easier life
as a landlord tomorrow.

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