Choosing between a fixed term or periodic tenancy is one of the most important decisions you will make when renting out your property. The right choice will affect your flexibility, certainty of income, and how easily you can adapt if your circumstances change. At Oxygen, we guide landlords across Wellington and Hawke’s Bay through these decisions, ensuring compliance with the Residential Tenancies Act and maximising returns.
What the Law Says Now
New Zealand tenancy law has been updated through the Residential Tenancies Amendment Acts of 2020 and 2024. These changes reshaped how fixed term and periodic agreements operate.
- Residential Tenancies Amendment Act 2020: Applied from 2021, requiring most fixed term tenancies to convert to periodic unless both parties agreed otherwise or correct notices were served.
- Residential Tenancies Amendment Act 2024: Took effect in 2025, reinstating some flexibility for landlords, including the ability to end fixed term tenancies at expiry without needing a specific ground, and reintroducing 90 day and 42 day notice options in periodic agreements.
Fixed Term Tenancies
A fixed term tenancy runs for a stated period, such as 12 months. The tenancy will usually convert to periodic unless one of the following occurs:
- The parties agree to renew, extend, or terminate.
- Either party gives notice between 90 and 21 days before the end date that they do not wish to continue.
- The landlord issues notice on specific legal grounds.
Since 2024, landlords can now also choose to end a fixed term tenancy at its expiry without giving a reason, provided proper notice is given.
Periodic Tenancies
A periodic tenancy has no end date and continues until ended by notice. Current requirements are:
- Landlords may end the tenancy with 90 days’ notice without cause.
- 42 days’ notice applies if the landlord or a family member is moving in, the property is required for employee housing, or the home is being sold with vacant possession.
- Tenants may end a periodic tenancy with 21 days’ notice.
Short Fixed Term Tenancies
Short fixed term tenancies, defined as 90 days or less, finish on the agreed end date. They do not roll over into periodic tenancies, and neither party needs to provide further notice.
Comparing Fixed Term and Periodic Tenancies
| Feature | Fixed Term Tenancy | Periodic Tenancy |
| Certainty & Stability | High for both landlord and tenant – clear duration. | Less certainty – tenant can leave with shorter notice. |
| Rent & Vacancy Management | Reduces vacancy risk, provides predictable cashflow. | More flexible but can mean more frequent turnover. |
| Flexibility | Low – limited ability to end early. | High – easier to adapt if selling, renovating, or moving in. |
| Legal Complexity | Need to follow correct processes and notice rules. | Must apply correct notice grounds and timeframes. |
| Wear & Tear | Longer tenancies reduce moving in/out wear. | Higher turnover may increase wear on the property. |
Key Considerations for Landlords
- Your future plans – selling, renovating, or moving back in may suit periodic.
- Income certainty – fixed terms provide predictable rent.
- Market conditions – some tenants prefer periodic, others value stability.
- Compliance confidence – rules for notices differ by tenancy type.
- Tenant care – long term tenants often look after homes better.
Why Partner with Oxygen
At Oxygen, we manage hundreds of tenancies across Wellington and Hawke’s Bay. Our team ensures agreements are compliant, notices are given correctly, and that landlords achieve both peace of mind and steady returns. We also keep you ahead of legal changes so your investment stays protected.
