How Tenancies Can End: What Landlords and Tenants Need to Know
The Residential Tenancies Act 1986 has had a significant impact on how tenancies can come to an end. The recent changes in the Act protect tenants by making them more secure in their rented homes. Below is a simple Decision Tool that clarifies how the changes operate in specific situations.
How Much Notice Do Landlords Have to Give?
Starting from 11 February 2021, a periodic tenancy cannot be cancelled without a justifiable reason. A 90-day termination notice will no longer be recognised.
Notices can only be used in certain circumstances:
63-day written notice can be given if the property owner or his/her family needs to move into the property and make it their main residence within 90 days of the contracted end of the tenancy;
OR
90-day written notice can be given if the owner is planning to do any of the following within 90 days of the contracted end of the tenancy:
✓ Have extensive renovations done on the property making it inhabitable for the tenant;
✓ Demolish the property;
✓ Place the property for sale.
According to the changes in the Act, tenants must give at least 28 days’ notice to end a periodic tenancy rather than the 21 days previously required.
Changes to Fixed-Term Tenancies
When a fixed-term tenancy comes to an end, it automatically becomes a periodic tenancy until the tenant or landlord gives notice. Neither can give notice to end a fixed-term tenancy before the end of the contracted term.
The updated Act has changed the requirements concerning giving notice to bring a fixed-term tenancy to an end when it expires. However, the changes only pertain to tenancies that were signed on or after 11 February 2021.
Fixed-Term Tenancies Signed Before 11 February 2021
If your fixed-term tenancy was signed before 11 February 2021, you will not need to change how and when notice is served. Specifically, if the tenant or the landlord do not want the tenancy to become periodic, written notice is required. This notice must be presented between 21 to 90 days before the expiration date of the fixed-term tenancy.
Changes to Fixed-Term Tenancies Signed On or After 11 February 2021
If the fixed-term tenancy was signed on or after 11 February 2021 and the tenant does not wish for the tenancy to become a periodic tenancy on expiration, notice in writing must be given to the landlord at least 28 days before the tenancy’s expiration date. Where the landlord decides to end the tenancy, they must give a valid reason for ending the tenancy and give notice of these reasons. The reasons considered valid in this context mirror those for ending a periodic tenancy:
63-day written notice can be given if the property owner or his/her family needs to move into the property and make it their main residence within 90 days of the contracted end of the tenancy;
OR
90-day written notice can be given if the owner is planning to do any of the following within 90 days of the contracted end of the tenancy:
✓ Have extensive renovations done on the property making it inhabitable for the tenant;
✓ Demolish the property;
✓ Place the property for sale.
