Every residential tenancy in New Zealand is either fixed-term or periodic — and the difference affects how much notice is needed to end it, how flexible it is, and what happens when it comes to an end. Here's exactly what each one means, how they compare, and the current notice periods under the Residential Tenancies Act. At Home & Co we've managed long-term tenancies across Wanaka for over 19 years, so we've set this out the way we'd explain it to one of our own owners.
What Does "Periodic Tenancy" Mean?
A periodic tenancy has no fixed end date. It continues on an ongoing basis — usually rolling over week to week or month to month in line with the rent payment cycle — until either the landlord or the tenant brings it to an end with proper written notice. Most long-term rentals in New Zealand eventually become periodic tenancies once an initial fixed term expires and isn't renewed.
What Is a Fixed-Term Tenancy?
A fixed-term tenancy has a set start and end date agreed in the tenancy agreement — commonly 6 or 12 months. Neither party can end it early without the other's consent, except in specific circumstances set out in the Residential Tenancies Act (such as family violence). When the fixed term ends, the tenancy either rolls into a periodic tenancy, is renewed for another fixed term, or ends by agreement.
Periodic vs Fixed-Term Tenancy: The Key Differences
| Feature | Fixed-Term Tenancy | Periodic Tenancy |
|---|---|---|
| End date | Set in advance (e.g. 12 months) | No set end date |
| How it ends | Ends automatically at expiry, or rolls into a periodic tenancy, unless renewed | Either party gives written notice |
| Landlord notice to end | N/A during the term (see early termination rules) | 90 days (no reason needed) or 42 days (specific reasons) |
| Tenant notice to end | Can't leave early without the landlord's consent; may owe re-letting costs | 21 days' written notice |
| Best for | Owners and tenants who want certainty over a set period | Owners and tenants who want flexibility |
How to End a Periodic Tenancy in NZ
| Who | Notice period | When it applies |
|---|---|---|
| Landlord | 90 days | No reason required (must not be retaliatory) |
| Landlord | 42 days | Owner/family moving in within 90 days and staying 90+ days; property sold with vacant possession required; property needed for an employee/contractor |
| Tenant | 21 days | Standard notice to end a periodic tenancy — applies even if the landlord already gave 90 days' notice |
*If a landlord gives less than 90 days' notice, the specific reason must be stated in the notice itself.
Other ways a periodic tenancy can end
● Rent arrears — if rent is unpaid for at least 5 working days on three separate occasions within a 90-day period, the landlord can apply to the Tenancy Tribunal to end the tenancy.
● Anti-social behaviour — three separate incidents within 90 days allows a Tribunal application.
● Family violence — a tenant or dependant affected by family violence can end their tenancy with 2 days' written notice using the approved form, without penalty.
● Physical assault by the tenant — a landlord can give 14 days' written notice if police have filed charges over an assault on the landlord, owner, a family member, or the landlord's agent.
What Happens at the End of a Fixed-Term Tenancy?
Unless it's renewed or ended by agreement, a fixed-term tenancy automatically becomes a periodic tenancy once the fixed term expires — the tenant doesn't need to do anything to "convert" it. If either party wants to end the tenancy at expiry rather than let it roll over, notice still needs to be given in advance. For the full notice requirements at each stage, see our guide on ending a tenancy.
Which Should You Choose: Periodic or Fixed-Term?
For long-term rentals, we generally recommend starting with a 12-month fixed-term agreement — it gives both owner and tenant certainty and minimises vacancy risk, and it naturally rolls into a periodic tenancy afterwards if everyone's happy to continue. That said, personal circumstances sometimes make a periodic tenancy the better fit from the outset. If you're not sure which suits your situation, our team is happy to talk it through — get in touch or request a free rental appraisal.
Frequently Asked Questions
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A periodic tenancy is a tenancy with no fixed end date. It continues until the landlord or tenant ends it with the correct written notice.
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Landlords must give 90 days' notice with no reason, or 42 days' notice for specific reasons (such as moving a family member in or a confirmed sale). Tenants must give at least 21 days' notice.
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Yes — with 90 days' written notice, provided the notice isn't retaliatory.
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A fixed-term tenancy runs for an agreed period and can't generally be ended early by either party. A periodic tenancy has no end date and either party can end it with written notice.
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Neither is universally "better" — fixed-term gives more certainty over income and occupancy, while periodic gives more flexibility. Most long-term Wanaka rentals we manage start fixed-term and roll into periodic.
Need Help With a Tenancy Decision?
Home & Co has managed long-term rentals across Wanaka for over 12 years. If you're weighing up a fixed-term or periodic agreement for your property, get in touch or request a free rental appraisal.