Every time we sign a new tenant or approach an expiry date, Auckland owners ask the same question: should we lock in a 12-month fixed term or let the tenancy run as periodic? Under the current Residential Tenancies Act rules, both options work well — provided you know what you are trading off.
When a fixed-term tenancy makes sense
A fixed-term tenancy sets a start date and an end date, usually 12 months. Neither the landlord nor the tenant can end it early with ordinary notice just because plans changed.
- You get certainty of rental income through the winter months when tenant enquiry is slower.
- You can align the expiry date with Auckland's peak January–March letting season.
- Your bank or insurer may prefer a signed 12-month term when you are refinancing.
The catch is flexibility. If you decide six months into a 12-month fixed term that you want to move back in or sell with vacant possession, you cannot issue a 42-day or 90-day notice. You have to wait for the fixed term to finish unless the tenant agrees to leave early.
When a periodic tenancy is the better choice
A periodic tenancy runs week-to-week until either party gives written notice. Since 30 January 2025, landlords can end a periodic tenancy with 90 days written notice without needing a specific ground (provided the notice is not retaliatory), or with 42 days written notice on set grounds such as the owner or family moving in or an unconditional sale requiring vacant possession.
Tenants on a periodic tenancy can leave with 21 days written notice. For landlords who may want to renovate, move in or sell the property within the next year, periodic is far cleaner than a fixed term.
The 90-to-21 day window at the end of a fixed term
A fixed-term tenancy automatically converts to a periodic tenancy on its end date unless either the landlord or the tenant gives written notice between 90 and 21 days before the expiry, or both sides sign a renewal. Climber tracks every fixed-term expiry date in advance so you are asked roughly 100 days out whether you want to offer a renewal, let it roll to periodic or give notice within the legal window. See our ending a tenancy guide and lease agreements wiki for the exact dates.
Questions landlords ask us
Can I end a fixed-term tenancy early if I sell the house?
No. Unless the tenant mutually agrees in writing, a fixed-term tenant has the right to stay until the end date and the property must be sold with the tenancy in place.
What happens if nobody gives notice before a fixed term ends?
It automatically becomes a periodic tenancy on the day after the fixed term expires, on the same rent and terms.
Does a periodic tenancy affect when I can increase the rent?
Rent can still only be increased once every 12 months with 60 days written notice, counted from the start of the tenancy or the last rent increase.
If you want this handled for a property in Auckland, talk to the Climber team or read how residential property management works with us.