Ending a fixed-term tenancy

There are only a few exceptions where a fixed-term tenancy can be ended early.
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Changes were made to the Residential Tenancies Act (RTA) that came into effect on 30 January 2025. These changes include giving landlords the right to end a fixed-term tenancy at the end of the fixed term rather than it automatically rolling over into a periodic tenancy (s 60A (2)(c) RTA). Previously, landlords could give notice in this situation only if they met the criteria that allowed them to lawfully end a periodic tenancy.

The new rules apply to fixed-term tenancies that end on or after 1 May 2025.

If a landlord gave notice prior to the new rules coming into effect, then that notice remains valid and cannot be replaced with a different notice using the new rules.

Find out more here

Fixed-term tenancy generally converts to periodic at the end of the term

Fixed-term tenancies ending on or after 1 May 2025

Fixed-term tenancies of greater than 90 days’ duration automatically become periodic tenancies the day after the tenancy’s end date, unless:

  • the landlord and tenant agree to renew or extend the fixed term or end the tenancy (s 60A (2)(a)(b) RTA), or
  • the tenant or the landlord gives notice that they want the tenancy to come to an end (s 60A (2)(c) RTA).

Notice must be given at least 21 days, but no more than 90 days, before the end of the term. 

Neither the landlord nor the tenant has to give a reason for ending the tenancy.

If the landlord wants to renew a fixed-term tenancy, but the tenant does not, then the tenancy will automatically become a periodic tenancy after the tenancy’s end date. It requires both the landlord and the tenant to agree in order to enter into another fixed-term tenancy. 

Fixed-term tenancies ending on or before 30 April 2025

For tenancies ending on or before 30 April 2025, the previous RTA laws apply.

A tenant can give 28 days’ notice if they want the fixed-term tenancy to end at the fixed-term end date rather than it rolling over into a periodic tenancy.

If the tenant does not agree to ending the tenancy, the landlord can only give notice at the fixed-term end date if there are lawful grounds for doing so, such as selling the property or because the landlord or a member of their family is moving into the property, and they give the appropriate amount of notice.

The exception to this is if the fixed-term tenancy agreement was signed before 11 February 2021. In this case, either the landlord or the tenant can give 21 days notice to end the tenancy at the fixed-term end date with no reason needed.

Ending a short fixed-term tenancy

A short fixed-term tenancy is a fixed-term tenancy of no more than 90 days. Unless the tenant and landlord agree otherwise, a short fixed-term tenancy comes to an end on the agreed expiry date and does not roll over into a periodic tenancy (s 7 RTA).

If the short-term tenancy is extended or renewed, and this makes the entire tenancy longer than 90 days, the rules relating to ordinary fixed-term tenancies that are set out above will apply.

Ending a fixed-term tenancy early

The circumstances for ending a fixed-term tenancy early are limited. The idea of a fixed-term tenancy is that it gives both parties certainty that the property will be tenanted for this period. Neither the tenant nor the landlord can end a fixed-term tenancy early by giving notice. However, there are some situations when an early exit may be possible.

Ending a fixed-term tenancy early by agreement

The easiest way to end a fixed-term tenancy early is for the tenant and landlord to agree to this. This could be based on the tenant finding a replacement tenant by subletting or assignment (see below), but it can also be about the tenant and landlord coming to an agreement on whatever terms they decide.

If the tenant and landlord agree to end a fixed-term tenancy early, it is important that this agreement is in writing and that the tenant keeps a copy of this agreement. The agreement should clearly state everything that has been agreed on.

It is a good idea to make sure there is some certainty in the agreement. For example, if the landlord agrees to release the tenant from the fixed-term tenancy but requires the tenant to keep paying rent until the landlord re-tenants the property, what steps will the landlord take and what is a reasonable timeframe for the landlord to have re-tenanted the property?

A common situation that tenants seek help for is where they think they have reached an agreement with their landlord to leave a fixed-term tenancy early, but they then find that they are paying rent in two places for an extended period. They are paying rent for their new tenancy but also continuing to pay rent for their previous tenancy because the landlord has not re-tenanted it in a timely manner and the obligation to keep paying rent is open-ended. Any agreement should make clear what the expectations and timeframes are.

The landlord may ask for a fee for ending a fixed-term tenancy early. This should only consist of reasonable costs eg, advertising for a new tenant.

Ending a fixed-term tenancy early by finding other tenants

One option for a tenant wanting to end a fixed-term tenancy early is to look at getting a replacement tenant either by subletting the tenancy or replacing the tenant (assignment).

Both subletting and assigning a tenancy require the landlord’s permission but the landlord cannot unreasonably withhold their permission or put unreasonable conditions on their agreement.

Ending a fixed-term tenancy early by applying to the Tenancy Tribunal

If the tenant is facing an unexpected change in circumstances they can apply to the Tenancy Tribunal to end the tenancy early. The tenant will need to convince the Tribunal that the hardship that they face in continuing with the tenancy outweighs the hardship the landlord will face by having the tenancy ended early (s 66 RTA). The landlord can also apply to end a fixed-term tenancy early under hardship grounds.  

If the tenant lives in unit title premises, eg, apartment, terrace housing, they can also apply to end the tenancy early if there is a change in body corporate rules that would negatively impact on the tenant (s 66(4) RTA).

If the Tenancy Tribunal does issue an order to end a fixed-term tenancy early, they are likely to order some degree of compensation to the landlord to offset any costs they may face by having the tenancy end early.

 A landlord can also apply to end a fixed-term tenancy early if a tenant:

  • is more than 21 days overdue in paying rent (s 55(1)(a)RTA) 
  • has caused (or threatened to cause) substantial damage to the property (s 55(1)(b)RTA)
  • has assaulted (or threatened to assault) the landlord or a member of their family or their agent, a neighbour, or another occupier of the building that the premises are in (s 55(1)(c)RTA) or  
  • has breached their tenancy agreement in a serious or repeated way that cannot be remedied (s 56(1) RTA).

 A landlord can also apply to end the tenancy if anyone who is on the property with the tenant’s permission causes damage or assaults someone as per above. This includes flatmates who are not on the tenancy agreement and guests.

 Find out more about ending a tenancy via the Tenancy Tribunal. 

Ending a fixed-term tenancy because of family violence

If a tenant is experiencing family violence, they can end their tenancy quickly if they need to, even if it is a fixed-term tenancy (s 56B RTA).

The tenant can withdraw from the tenancy by giving the landlord two days’ notice. The tenant must complete the required form and provide qualifying evidence that they have experienced family violence while living in the premises. Find out more here.

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