Fixed-term vs periodic: which tenancy?
The two tenancy types trade security for flexibility in opposite directions. Here's how each works, how each ends, and how to choose.
Every residential tenancy in New Zealand is one of two types, and the choice shapes everything about how the tenancy can end. Neither is "better" — they suit different situations, and Wellington's rhythm (university years, public-sector contracts, ship-in ship-out professionals) makes the choice more consequential here than in most markets.
Fixed-term: certainty, both ways
A fixed-term tenancy runs for a stated period — commonly 12 months. Neither side can end it early simply by giving notice: the landlord is guaranteed rent for the term, and the tenant is guaranteed the home. It can only end early by mutual agreement, or in limited circumstances through the Tenancy Tribunal. If nobody acts as the end date approaches, a fixed-term automatically rolls into a periodic tenancy — unless notice is given or a new fixed term is agreed within the window the Act specifies.
The trade-off: certainty cuts both ways. If a tenant's circumstances change mid-term, breaking a fixed-term is genuinely hard — and if a landlord's plans change, the property is committed until the term ends.
Periodic: flexibility, with rules
A periodic tenancy has no end date — it rolls until someone ends it properly. Tenants can leave with a relatively short written notice. Landlords, by contrast, can only end a periodic tenancy on specific grounds set out in the Residential Tenancies Act — such as selling the property, moving themselves or family in, or substantial renovation — each with its own required notice period. "I'd just like the property back" isn't a ground on its own.
Because notice periods and termination grounds are updated by legislation from time to time, always check the current numbers on Tenancy Services or see our compliance and notice periods guide before acting on either side.
Choosing, as a landlord
Fixed-term suits owners who want locked-in income — especially through Wellington's quieter winter letting season. A smart pattern is timing the end of a fixed term for summer, when the rental market is deepest, so a re-let (if it comes) happens at the strongest moment. Periodic suits owners who may sell, renovate or move back in on a horizon they can't quite predict — the flexibility premium is real, but so is the tenant's ability to leave on short notice.
Choosing, as a tenant
Fixed-term gives you a guaranteed home and an unchangeable rent for the term (rent can generally only be increased at intervals the law allows, and not within the protections of your agreement). Periodic gives you the ability to move for a job, a flat change or a life change without negotiating your way out of a contract. If you're new to Wellington, many tenants start fixed and go periodic once they know the city.
Unsure what your current agreement is, or want to change it at renewal? Tenants and owners with NZR can raise it with us any time — renewals and tenancy-type changes are part of the service.