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  • Fixed term tenancy

    Hi Property Investors,

    I heard from a friend that after the tenancy reform next month, we can no longer demand the tenant to renew a fixed term tenancy, and it will become periodic tenancy. If this is true can the landlord still end the fixed term tenancy? And then re advertise it for new tenant

    Thank you

  • #2
    Any FTT entered into before 11 February 2021 remains under the old rules, so termination notice can be given in the usual 21 - 90 day period. New FTTs after that date are under the new rules so unless there is agreement between the parties for a new FTT the tenancy converts automatically to periodic and the new periodic termination rules. And the new assignment of tenancy rules.

    If a landlord has concerns about a tenant in a current FTT they can terminate the tenancy under the old rules or deal with the consequences.

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    • #3
      If you heard from a friend maybe there are a few other new rules and regulations you don’t know about that might cause you a lot of problems down the track if you don’t follow them. You might need to brush up on the rules or maybe get a property manager to take over, at least for a while until you get up to speed. There are a whole lot of tenants running to the papers lately about breaches and you don’t want to be on the front page of the press!

      Comment


      • #4
        Originally posted by artemis View Post
        Any FTT entered into before 11 February 2021 remains under the old rules, so termination notice can be given in the usual 21 - 90 day period. New FTTs after that date are under the new rules so unless there is agreement between the parties for a new FTT the tenancy converts automatically to periodic and the new periodic termination rules. And the new assignment of tenancy rules.

        If a landlord has concerns about a tenant in a current FTT they can terminate the tenancy under the old rules or deal with the consequences.
        Thank you Artemis,

        It seems pointless to have FTT if the tenant can just refuse to renew it and go into periodic. Need to be extra careful in selecting tenants now

        Comment


        • #5
          Originally posted by hawkeye View Post
          If you heard from a friend maybe there are a few other new rules and regulations you don’t know about that might cause you a lot of problems down the track if you don’t follow them. You might need to brush up on the rules or maybe get a property manager to take over, at least for a while until you get up to speed. There are a whole lot of tenants running to the papers lately about breaches and you don’t want to be on the front page of the press!
          Thank you hawkeye,

          Yes it seems too much to handle without property manager now

          Comment


          • #6
            Originally posted by NomoneyNotalk View Post

            Thank you Artemis,

            It seems pointless to have FTT if the tenant can just refuse to renew it and go into periodic. Need to be extra careful in selecting tenants now
            But dont you have the option of ending the fixed term if the tenant does not agree, and looking for another tenant who will agree to one?

            Comment


            • #7
              Originally posted by skid View Post

              But dont you have the option of ending the fixed term if the tenant does not agree, and looking for another tenant who will agree to one?
              Nope. They have removed that as well. Have to use one of the 90 day "reasons".
              Only fair I'm told.
              The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

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              • #8
                Originally posted by PC View Post

                Nope. They have removed that as well. Have to use one of the 90 day "reasons".
                Only fair I'm told.
                What is a fixed term ,if the end of the fixed term is not the end of the term agreement?...with notice..................Its not fixed if you cant end it at the end date

                So it appears the only way to deal with problem tenants is to .....do renovations ,.. move in..or sell......with notice of course.
                unless they are consistently late with rent or family violence etc....................It eliminates any enforcement of things like cluttering the section with junk like car parts ...kitchen abused and covered in grease ...etc ..etc............................Whats the point of an inspection?
                Last edited by skid; 10-02-2021, 09:26 AM.

                Comment


                • #9
                  Originally posted by skid View Post

                  What is a fixed term ,if the end of the fixed term is not the end of the term agreement?...with notice..................Its not fixed if you cant end it at the end date

                  So it appears the only way to deal with problem tenants is to .....do renovations ,.. move in..or sell......with notice of course.
                  unless they are consistently late with rent or family violence etc....................It eliminates any enforcement of things like cluttering the section with junk like car parts ...kitchen abused and covered in grease ...etc ..etc............................Whats the point of an inspection?
                  What? Do you think you own the house or something?
                  It's the tenants HOME. Not yours.
                  Yay Socialism - this time it's different.
                  The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

                  Comment


                  • #10
                    Originally posted by skid View Post
                    What is a fixed term ,if the end of the fixed term is not the end of the term agreement?...with notice..................Its not fixed if you cant end it at the end date

                    So it appears the only way to deal with problem tenants is to .....do renovations ,.. move in..or sell......with notice of course.
                    unless they are consistently late with rent or family violence etc....................It eliminates any enforcement of things like cluttering the section with junk like car parts ...kitchen abused and covered in grease ...etc ..etc............................Whats the point of an inspection?
                    You will have some remedies. Like for example if there are issues raised in inspections, then issue a 14 day notice to fix. Maybe twice. If not done get a quote to fix / clean / remove rubbish / do the garden and apply to the Tenancy Tribunal for an order for the tenant to pay. (Or do the paperwork to claim at the end of the tenancy if that is coming up.)

                    Landlords also have the option of increasing rent as much and as often as possible, just being careful to keep paperwork showing the new rent is not substantially more than market rent at the time. If tenants can't pay they can move to somewhere cheaper, the landlord can attempt to recover any debt and be super careful with tenant selection in future..

                    Did I mention paperwork? It is critical to do everything by the book these days, especially if MBIE does a compliance audit.

                    I reckon that landlords should be using the Tenancy Tribunal to the max to require tenants to meet their obligations. Make them produce decisions and reasons and if they don't like it they (and we) can tell the government that their rules are increasingly ridiculous and might even be having unintended consequences.//

                    This post of mine is as much about stupid politicians as about tenants in case anyone was wondering.

                    Comment


                    • #11
                      artemis
                      you of all people should know that there's no such thing as a "Non Stupid" Politician anymore.
                      The good ones are long gone and we are left with bottom of the barrel idiots with socialist agendas who rely on hidden, unelected beaurocrats such as MBIE who have been trying to get their own person agendas implemented for years.
                      Food.Gems.ILS

                      Comment


                      • #12
                        Originally posted by artemis View Post
                        Landlords also have the option of increasing rent as much and as often as possible . . .
                        But it's now possible only once in every 12 months, given the changes.
                        Or do you have a secret?

                        Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

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                        • #13
                          Originally posted by Perry View Post
                          But it's now possible only once in every 12 months, given the changes.
                          Or do you have a secret?
                          Heh, these days once a year rent increases. But those increases can be as much as possible without reaching the level of 'substantially more than market'. Other things being equal of course, as depends on demand and availability of good tenants. Good way to 'encourage' tenants to leave if that is what the landlord wants.

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                          • #14
                            Originally posted by artemis View Post
                            Heh, these days once a year rent increases. But those increases can be as much as possible without reaching the level of 'substantially more than market'. Other things being equal of course, as depends on demand and availability of good tenants. Good way to 'encourage' tenants to leave if that is what the landlord wants.
                            This seems like it has the potential to backfire. If you're raising the rent high (but still within cooee of 'market rent') for the main purpose of getting your existing tenant to leave, if you were to subsequently re-advertise the property at a lower (perhaps the original) rate, the tenant could lay a claim with the tenancy tribunal against you, arguing that you constructively caused their tenancy to end outside of the reasons allowed under the new law.

                            I see the case as being parallel to constructive dismissal cases when it comes to employment law - an employer deliberately degrades the working conditions of an employee, causing them to resign, and employee files a constructive dismissal (or constructive disadvantage) claim.

                            No idea whether such a thing would be succesful - but surely they could try it, and now that names can be removed from TT cases there's no reason not for them.

                            Now if you re-advertise the property at the same rate you gave to the tenant - even if it was only for a period of say 2-3 weeks (so you could put the price back down and say you couldn't find tenants at the higher price) - then you'd be generally safe from this, I think.
                            Last edited by Lanthanide; 14-02-2021, 10:22 AM.

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                            • #15
                              If a fixed-term tenancy agreement is for 90 days or less, is this subject to the Residential Tenancies Act? Thanks.

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