Ending a tenancy in New Zealand requires landlords to follow specific legal procedures to ensure fairness and compliance with the Residential Tenancies Act 1986. Whether a tenant decides to leave or you need to end the tenancy yourself, understanding the correct process is essential to avoid disputes and penalties.
This article outlines the key steps for legally ending a tenancy, handling bond refunds, and dealing with potential challenges.
1. How Tenancies Can End
There are two main types of tenancies in New Zealand, and each has different rules for termination:
✅ Periodic Tenancy (Ongoing, No Fixed End Date)
- The most common type of rental agreement.
- Can be ended by either the landlord or tenant with proper notice.
✅ Fixed-Term Tenancy (Set Start and End Date)
- Runs for a specific period (e.g., 12 months).
- Generally, neither party can end it early unless both agree, or special legal grounds apply.
2. How Much Notice Do You Need to Give?
The amount of notice required depends on who is ending the tenancy and the reason for termination.
If the Tenant is Ending the Tenancy:
- Periodic Tenancy: The tenant must give 28 days’ written notice.
- Fixed-Term Tenancy: The tenant cannot leave before the end date unless the landlord agrees or they have a legal reason (e.g., hardship).
If the Landlord is Ending the Tenancy:
The rules are stricter for landlords—valid reasons and specific notice periods must be followed.
| Reason for Termination | Notice Required |
|---|---|
| Selling the property with vacant possession | 90 days |
| Moving in or housing family members | 63 days |
| Property conversion, demolition, or major renovations | 90 days |
| Tenant has breached the agreement (e.g., unpaid rent, damage) | 14 days’ notice to remedy, then application to the Tenancy Tribunal if not resolved |
| Anti-social behavior (serious cases) | 14 days with proof |
🚨 Important: Landlords cannot end a tenancy without a valid reason. If a landlord tries to force a tenant out unlawfully, they may face fines of up to $6,500. Please check our disclaimer related to the information provided on this website.
3. Ending a Fixed-Term Tenancy Early
Fixed-term tenancies usually continue until the agreed-upon end date, but there are a few exceptions:
- Mutual Agreement: Both the landlord and tenant agree to terminate early.
- Tenant Hardship: The tenant can apply to the Tenancy Tribunal if staying in the tenancy would cause significant hardship.
- Breach of Agreement: If the tenant repeatedly breaches the tenancy agreement, the landlord may apply to the Tribunal to end the tenancy early.
4. Conducting the Final Inspection
Before returning the bond, landlords should conduct a final property inspection to ensure there is no excessive damage.
✅ What to Check:
- Property condition compared to the initial inspection report.
- Any damage beyond normal wear and tear.
- Cleanliness, including carpets, walls, and appliances.
🚨 Important: Landlords cannot deduct bond money for standard wear and tear (e.g., faded paint, minor scuff marks).
5. Handling the Bond Refund
Once the tenancy ends, landlords and tenants must complete a Bond Refund Form through Tenancy Services.
- If there are no disputes, the bond is refunded in full.
- If the landlord claims part of the bond (e.g., for unpaid rent or damage), the tenant must agree—or the landlord can apply to the Tenancy Tribunal.
- Refunds are typically processed within 5–10 working days.
6. What if the Tenant Refuses to Leave?
If a tenant does not vacate by the agreed date, landlords cannot forcibly remove them. Instead:
- Apply to the Tenancy Tribunal for a Possession Order.
- If the tenant still refuses to leave, request a bailiff.
- Only a court-appointed bailiff can legally evict a tenant.
Attempting to remove a tenant yourself (e.g., changing locks, removing belongings) is illegal and can result in fines.
7. Common Mistakes to Avoid
❌ Giving Incorrect Notice Periods: Always check the latest tenancy laws before serving notice.
❌ Failing to Provide a Written Notice: Verbal notice is not legally valid. Always use email or written communication.
❌ Deducting Bond Money Unfairly: Tenants can challenge unfair deductions through the Tenancy Tribunal.
❌ Attempting to Evict Tenants Unlawfully: Follow legal procedures to avoid fines.
8. Final Steps Before Handing Over the Property
Before closing the tenancy, ensure the following:
✅ Keys are Returned: Collect all property keys, including mailbox and garage keys.
✅ Utilities are Transferred: Ensure tenants have notified utility providers of their move-out date.
✅ Final Rent Payment is Cleared: Confirm all rent is paid up until the move-out date.
Ending a tenancy requires careful planning and adherence to New Zealand tenancy laws. By following the correct notice periods, conducting thorough inspections, and handling bond refunds fairly, landlords can avoid disputes and ensure a smooth transition for both parties.
In the next article, we’ll explore future-proofing your rental investment, including adapting to market changes and maximizing long-term returns.