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tenancy

Can a landlord end a tenancy without a reason? (No-cause terminations)

Key Takeaway

New Zealand law no longer permits landlords to end periodic residential tenancies without a specific, legally defined reason. Fixed-term tenancies generally run to their end date, but if a landlord wishes to terminate a fixed-term tenancy at its conclusion, they must also provide a valid reason as if it were a periodic tenancy.

Ending a Tenancy Without Reason in New Zealand

In New Zealand, the ability for a landlord to end a tenancy agreement (the contract between a landlord and tenant that sets out the terms of the tenancy) without providing a specific reason, often referred to as a "no-cause termination," has been largely removed from residential tenancy law. This significant change was introduced by the Residential Tenancies Amendment Act 2020. Landlords are now generally required to provide a specific, legally valid reason to terminate a tenancy, whether it is a periodic tenancy or a fixed-term tenancy.

Terminating Periodic Tenancies

A periodic tenancy is a tenancy agreement that has no fixed end date and continues until either the landlord or tenant gives notice to end it. Under current New Zealand law, landlords can no longer end a periodic tenancy without providing a specific, legally valid reason [Source: Residential Tenancies Act 1986, s 51A].

When a landlord serves a notice to terminate (a formal written notification to end the tenancy) for a periodic tenancy, it must clearly state the reason for termination and provide the correct notice period (the minimum amount of time that must be given before the tenancy ends). The required notice period depends on the reason for termination [Source: Residential Tenancies Act 1986, s 51B].

Valid reasons a landlord can give notice to terminate a periodic tenancy include:

  • Landlord or owner's occupation: The landlord or a member of their family (owner, partner, child, parent, spouse's/partner's parent, or sibling) genuinely requires the premises to live in, and it will be their principal place of residence for at least 90 days. The landlord must give at least 63 days' notice [Source: Residential Tenancies Act 1986, s 51A(1)(a), s 51B(1)(a)].
  • Employee housing: The premises are usually provided to employees, and the landlord requires it for an employee. The landlord must give at least 63 days' notice [Source: Residential Tenancies Act 1986, s 51A(1)(aa), s 51B(1)(a)].
  • Sale of premises: The landlord has sold the premises with an unconditional agreement for sale and purchase, and the purchaser requires vacant possession. The landlord must give at least 90 days' notice [Source: Residential Tenancies Act 1986, s 51A(1)(b), s 51B(1)(b)].
  • Extensive alterations, demolition, or change of use: The landlord intends to carry out extensive alterations, demolition, or convert the premises to a non-residential use, and it would be impracticable for the tenant to live there during that time. The landlord must give at least 90 days' notice [Source: Residential Tenancies Act 1986, s 51A(1)(c), s 51B(1)(b)].
  • Conversion to commercial premises: The premises are to be converted into commercial premises. The landlord must give at least 90 days' notice [Source: Residential Tenancies Act 1986, s 51A(1)(d), s 51B(1)(b)].
  • Repeated anti-social behaviour: The tenant has engaged in repeated anti-social behaviour within a 90-day period on three separate occasions, and the landlord has given written notice of each instance to the tenant. The landlord must give at least 28 days' notice [Source: Residential Tenancies Act 1986, s 51A(1)(e), s 51B(1)(c)].
  • Repeated rent arrears: The tenant has been at least 5 working days late with rent payment on three separate occasions within a 90-day period. The landlord must give at least 14 days' notice [Source: Residential Tenancies Act 1986, s 51A(1)(f), s 51B(1)(d)].
  • Repeated tenancy breaches: The tenant has breached the tenancy agreement on three separate occasions within a 90-day period, and the landlord has given written notice of each breach and informed the tenant that they may apply to the Tenancy Tribunal (an independent judicial body that resolves disputes between landlords and tenants) to end the tenancy. The landlord must give at least 14 days' notice [Source: Residential Tenancies Act 1986, s 51A(1)(g), s 51B(1)(d)].

If a tenant disputes a termination notice, or if the landlord wishes to terminate for certain breaches not covered by the notice provisions above, the landlord may need to apply to the Tenancy Tribunal for an order to terminate the tenancy [Source: Residential Tenancies Act 1986, s 51, s 66].

Terminating Fixed-Term Tenancies

A fixed-term tenancy is a tenancy agreement that has a specific start and end date. Generally, a fixed-term tenancy cannot be terminated by a landlord before its end date unless the tenant breaches the tenancy agreement, or by mutual agreement, or if the Tenancy Tribunal orders termination due to severe hardship for either the landlord or tenant [Source: Residential Tenancies Act 1986, s 60A, s 66, s 66A].

Ending a Fixed-Term Tenancy at its Expiry

Unless specific actions are taken, a fixed-term tenancy automatically converts to a periodic tenancy at the end of the fixed term [Source: Residential Tenancies Act 1986, s 60A(2)].

If a landlord wishes to end a fixed-term tenancy at the expiry of its term (i.e., prevent it from converting to a periodic tenancy), they must give written notice using one of the specific reasons outlined for terminating periodic tenancies (e.g., landlord's use, sale of premises). This notice must provide the corresponding notice period (e.g., 90 days or 63 days) [Source: Residential Tenancies Act 1986, s 60A(3)]. If such a notice is not given with a valid reason, the tenancy will convert to a periodic tenancy [Source: Residential Tenancies Act 1986, s 60A(2)].

If a tenant wishes to end a fixed-term tenancy at its expiry, they must give at least 28 days' written notice to the landlord [Source: Residential Tenancies Act 1986, s 60A(2A)].

Challenging a Termination Notice

Tenants who believe a termination notice is invalid—for instance, if no valid reason is given, the stated reason is false, or the incorrect notice period has been provided—have the right to apply to the Tenancy Tribunal to challenge it. The Tenancy Tribunal will then consider the circumstances and determine the validity of the notice and whether the tenancy should be terminated [Source: Residential Tenancies Act 1986, s 77].

When to Seek Independent Legal Advice

Individuals seeking to understand their specific rights and obligations regarding residential tenancies, or those involved in a dispute concerning a termination notice, should consult official sources or legal professionals. Free advice may be available from Community Law Centres (https://communitylaw.org.nz/) or other legal aid services. The Tenancy Tribunal can also provide guidance and resolve disputes.

Key Resources