Trouble on the horizon?

Our Experts Answer:

Under the Residential Tenancies Act 1986 (the Act), a fixed term tenancy cannot be ended by either party giving notice to terminate the contract before the agreed end date. This also applies where an agreement has been entered into but has not yet commenced, regardless of whether any money has been paid (unless a conditional agreement is on offer).

Fixed term tenancies can only be ended early either by mutual agreement between the landlord and the tenant(s), if the property undergoes a mortgagee sale and in certain circumstances, by the Tenancy Tribunal.

Where a landlord and tenant(s) agree to terminate a fixed term tenancy early (including any terms and conditions agreed to), the details of that agreement should be recorded in writing, preferably on the tenancy agreement. We suggest in any situation where a tenant is in breach of their responsibilities under the Act (e.g. rent arrears), the landlord takes steps quickly to resolve the matter.

Information regarding options available to a landlord under the Act can be viewed on the Ministry of Business, Innovation and Employment’s website at http://www.tenancy.govt.nz/landlords-index

To discuss your situation further, you contact the Ministry on 0800 TENANCY (0800 836 262).