Understanding the difference between periodic and fixed-term tenancy agreements is essential for both landlords and tenants in New Zealand. Let’s break it down, so you know exactly what you’re committing to.

Fixed-term Tenancies

A fixed-term tenancy is straightforward: the tenant agrees to live in the property for a specific period, usually 6 to 12 months. Once the tenancy ends, it may roll over into a periodic tenancy, or the tenant can renew, extend, or move out with proper notice.

Benefits: Provides security for both parties & minimises vacancy

Key Point: Tenants can’t break a fixed-term tenancy early without the landlord’s consent, and they may be liable for re-letting costs if they do.

Periodic Tenancies

A periodic tenancy, on the other hand, has no set end date. It continues until either the tenant or landlord gives written notice.

Benefits: Greater flexibility for both parties

Key Point: Flexibility can work both ways, so tenants and landlords should be prepared for the possibility of unexpected notice.

Our Recommendation

For long-term rentals, we generally recommend a 12-month fixed-term agreement. However, personal circumstances can make periodic tenancies a better fit in some cases.

Still unsure about which agreement suits your situation? Our team at Home and Co is here to guide you through the process, ensuring a smooth tenancy experience for both landlords and tenants.