No reason required for termination 

Previously, if no other action was taken, when a fixed-term tenancy ended it automatically rolled over to a periodic tenancy with all the associated periodic tenancy conditions.

Now, under amended section 60A, a fixed-term tenancy will still automatically revert to a periodic tenancy except if:

• either the landlord or the tenant gives notice to terminate the tenancy at the end of the fixed-term period, or 
• the parties agree to a different arrangement such as extending the tenancy or mutually agreeing to end the tenancy.

The principal difference between the amended and the earlier legislation is that previously, landlords could only terminate a tenancy under one of a number of specific termination grounds for termination, such as requiring the property for themselves, a family member, an employee or a contractor, or an unconditional sale agreement requiring vacant possession.

Now, as long as the required notice is given, no reason has to be given by the landlord for terminating the lease.

Notice period to terminate tenancy

If a landlord wishes to terminate a tenancy at the end of a fixed-term period, notice must be given in writing at least 90 days before the end of the fixed-term period.

If a tenant wishes to terminate a tenancy at the end of a fixed-term period, notice must be given in writing at least 21 days before the end of the fixed-term period.

Transition period for existing fixed-term tenancies

Because of the 90 day transition period for existing fixed-term tenancies (i.e. under the previous legislation, where permitted, a 90 day notice period could only be given from the date following the end of the fixed-term period), this particular piece of the amended legislation does not come into effect until after 30 April 2025.

Reasons for the amendment

This change to the legislation was made because, according to Chris Bishop, Minister of Housing,  landlords were “hamstrung by the old laws”. “It will give landlords more confidence to offer homes to tenants who may otherwise have been considered too risky”, he claimed, and it “will encourage landlords ….. to offer their [vacant] properties for rent”. At Nightingales, we do not necessarily agree with this reasoning, but only time will tell.

Implications for tenants

While it is important for tenants on fixed-term tenancies to be aware of the change the amendment brings, at Nightingales, we do not feel this amendment will make a significant difference to either tenants’ security of tenure, or to opening up the rental market.

A good tenant will never have a tenancy terminated simply on the whim of a landlord. Good tenants are recognised as an essential component in the residential rental market. Get in touch today to speak to one of our property management experts.