If you’ve invested in one or several properties in Whangarei, whether it be a single unit, a multi-level apartment or seaside estate, you’d be aware by now of the kind of tenancy agreements that the law allows for.
In New Zealand, there are two major kinds of tenancies, namely what we know as Periodic Tenancy, and Fixed-Term Tenancy.
Neither one is better than the other. Both are there to fill a need or give you as a property owner tenancy options. One kind of tenancy can be well-suited to a certain type of property or a property’s location. But deciding which one works best is all up to your needs.
Still whether you are a landlord or a tenant in Whangarei, you must be aware of your rights and what you should do with each type of tenancy. This is all good to know before you draft a tenancy agreement and have a tenant sign it.
So which one would work well for your Whangarei rental property? Read on:
Periodic tenancy means that one can stay in that place until either the tenant or the landlord issues a notice to end it. This agreement makes it easy for both the tenant and the landlord to close a lease or tenancy agreement.
In fact, you do not need to renew a periodic tenancy, this can cease 21 days after the landlord receives the due notice, or either in a 42 or 90 day period if its landlord is the one ending the agreement.
This tenancy type is quite flexible for landlords who may have other goals for the property in the long-term or not quite distant future, like if the landlord is planning to sell it. It is also suitable for tenants who may not be staying long in the area due to career choices, this gives them the option to move fast to another region when needed.
Fixed-term tenancy means that you can stay at the place until the date indicated on your agreement. The Whangarei tenancy agreement should contain the start and the end date, as this will last for a certain period. Usually, the tenancy cannot be ceased before the agreed end date. This means that tenants can rent the property for a specific period and is usually longer than 90 days and lasts typically no longer than 12 months.
As the end date nears, the tenant must duly inform the landlord in the form of a written notice stating whether they would like to extend the tenancy or not continue the tenancy agreement on another fixed-term cycle. The written notice should be given between 21 to 90 days before the end date.
For landlords, on the other hand, they need to provide their tenants a written notice at least 90 days before the end of the tenancy. However, in some situations, landlords can provide it at least 42 days before ending the lease, only if:
- The property has been sold and should be vacant upon transfer to the new owner.
- The owner or a member of the owner’s family will be living in the said property.
- The property is specially built for employee occupancy and will be used again for that purpose (however, such a clause should be stated in the tenancy agreement)
If the tenants would like to end their lease before the 42 or 90 days, it’s essential that they give their landlords the 21-day notice.
Whangarei Rental Property Management Done Right
Get your tenancy concerns sorted out. If you need advice on the tenancy type for your property, we can give you sound advice as well as full management of your rental property. We provide the best return on your rental investment; get in touch with us at RentalsCo. Our expertise lies in the management and maintenance of various rental properties.
Another service we are very good at is tenant placement. We believe this is the best strategy to a successful property rental business. At RentalsCo, this is one of our key rental management services. We take the time and dedicate resources to screen every tenant application. We do the necessary background checks, credit and employment records plus the tenant interviews. We make sure that the ideal and responsible tenant gets to have the keys to your rental property.