Can the landlord end a fixed-term tenancy early?

No, not during the term.

Once both parties sign, the landlord can’t terminate the tenancy early – unless the tenant agrees.

However, landlords can end a tenancy at the end of the fixed term, with at least 21 days written notice – no reason required.

Who benefits most from a fixed-term tenancy?

Fixed-term tenancies have benefits for tenants and landlords.

They're great for tenants like:

  • Families who want to make sure they have a house in their preferred school zone
  • Students who want accommodation for the academic year
  • Professionals who are relocating for short-term contracts

They know a landlord won’t ask them to leave unexpectedly. 

But fixed terms also benefit landlords who want:

  • More certain rental income over a set period
  • Certainty during high turnover periods (e.g. renting to students)
  • Predictable lease end dates to align with sale or renovation plans

With the new law change, landlords regain some control over how and when they transition to a new tenant.

Can the landlord increase the rent on a fixed tenancy?

Sort of. 

Landlords are allowed to increase the rent every 12 months. 

For fixed-term tenancies, landlords can only increase rent if the tenancy agreement allows this.

So, it’s a good idea for tenants to read the fine print when signing longer-than-usual contracts.

For instance, a tenant who signs up for an 18-month fixed term could have the rent increased after 12 months. That’s if there is a clause in the tenancy agreement allowing this.

The landlord must give at least 60 days’ notice in all instances of rental increases. 

But they let the tenant know the rent is going up before the 12-month period ends. That’s so the rental increase kicks in just after the first 12 months of the tenancy.

Should I have my investment properties on fixed-term contracts?

The right tenancy type for you depends on your house.

If you own a townhouse or an apartment, a fixed-term contract might be a better fit. 

This is because these properties tend to attract more transient tenants. Whereas if you have a standalone house in a small town, a periodic tenancy might also work because you might attract a tenant who plans to stay 5+ years.

Generally speaking, many of the landlords we work with, here at Opes, prefer fixed-term tenancies.

However, if you’ve got a great potential tenant for your property it may pay to be flexible around the agreement type.

Tom Greene 1 extended copy 2 2024 04 03 223109 tdks

Tom Greene

Business Development Manager with 5 years Property Management industry experience. Property Investor in Christchurch

Tom Greene is the Business Development Manager at Opes Property Management in Christchurch with over five years of industry experience and is also an experienced property investor. Tom provides tenancy guidance and insight to those both starting and continuing their investment journey.