A lessor rents out his investment property on a fixed term agreement which is due to end on 31 December. He decides to allow his student son to move into the property, which is near the university, on 1 February.
The lessor would like the current tenants to move out on 31 January, and he gives them written Notice to leave on 30 November.
After the fixed term agreement ends on 31 December the agreement becomes periodic, meaning the tenant can leave at any stage by giving two weeks notice.
When a lessor ends a tenancy agreement without grounds, they must give the tenant two months notice to leave. This applies to fixed term as well as periodic agreements.
The Residential Tenancies and Rooming Accommodation Act 2008 (the Act) allows a tenancy to end for a number of different reasons, such as non-liveability or abandonment. The Act also allows a tenancy to be ended ‘without grounds’ if the party ending the agreement does not give a specific reason.
A lessor cannot end a fixed term agreement without grounds before the agreement’s end date, unless the tenant agrees.
Fixed term agreements can end only when either the lessor or tenant gives written notice. When the fixed term agreement moves beyond its agreed end date – and if neither party has given notice – it becomes a periodic agreement.
A lessor or tenant can end a fixed term or periodic agreement. When a tenant decides to leave the rented property, they must give the lessor two weeks notice. However, if it is a fixed term agreement, a tenant cannot leave before the agreement’s end date unless the lessor agrees.
If a fixed term agreement is for a period of six months, the lessor and tenant should be aware that negotiations about continuing the tenancy agreement may sometimes begin three months before the end of the tenancy.
When a lessor presents a tenant with a Notice to leave (Form 12), giving the required two months notice, the tenant might choose to find a new rental property immediately, but in a fixed term tenancy, the tenant cannot leave before the agreement’s end date unless the lessor agrees.
More information about ending a tenancy without grounds is available on the RTA website.
Last Updated: 03 August 2011 Source RTA