However, circumstances can change, and tenants may sometimes request to vacate a property before the fixed-term tenancy expires. While landlords are not required to accept this notice, it’s important to consider the available options when faced with such a request.
What are your options as a landlord?
If a tenant wants to break their fixed-term lease early, you have a few choices on how to handle the situation:
1. Enforce the agreement
You are within your rights to enforce the terms of the fixed-term lease. This means the tenants would continue to be responsible for paying rent until the end of the tenancy, regardless of whether they vacate early.
While this is a legally sound option, it may not always be the most practical if the tenant is adamant about leaving.
2. Release the tenant early with conditions
Alternatively, you can choose to release the tenant from their lease early under certain conditions. This approach can offer a compromise that works for both parties, while still protecting your interests. Here are some options to consider:
- Require rent until new tenants are found
You can agree to release the tenant from the tenancy, provided they continue to pay rent until suitable replacement tenants are secured. This ensures that you don’t face a period of vacancy or lost income.
- Ask tenants to cover re-letting costs
Finding new tenants involves expenses such as advertising and conducting tenant checks. You can reasonably ask the departing tenant to cover these costs as part of the agreement to release them early.
- Set clear terms for termination
To formalise the arrangement, you can stipulate that the tenancy officially ends only when new tenants sign a tenancy agreement and all paperwork is completed. This ensures a smooth transition and reduces the risk of a prolonged vacancy.
Reaching a mutually beneficial solution
While you have no legal obligation to accept a tenant’s notice to vacate early, maintaining open communication can help find a solution that works for both parties. Consider discussing the situation with your tenants and seeing if you can negotiate terms that protect your interests without creating unnecessary tension.
The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice, you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.
