The Residential Tenancies Amendment Act 2020 - How to terminate a tenancy

Overview

The normal terms of a tenancy agreement between landlords and tenants has been the 12 month fixed term agreement. At the expiry of the agreement it was common for the tenancy to either end, be renewed or in some cases lapse into a periodic agreement. As of February 1st 2021, if the tenant does not choose to renew a fixed term agreement then it automatically becomes a periodic. It is now not possible to terminate the agreement with no-cause i.e. just because we want them to leave. This gives more power to the tenant and presents a new challenge for landlords.

Under the new Bill there are new termination grounds available to landlords under a periodic tenancy but timeframes have changed. Some new grounds are additional to existing grounds in the RTA and some details of existing grounds have changed. The provision allowing landlords to terminate a tenancy without cause by providing 90 days’ notice will no longer apply. It is essential to refer to the new provisions of the Residential Tenancies Amendment Act 2020 to fully understand all of the grounds that may enable tenancies to be terminated by the landlord with notice. Specific requirements apply, and all aspects of the requirements must be fulfilled for the notice of termination to be lawful. Below is a summary of those grounds.

Legal ways for a landlord to terminate a periodic agreement

Landlords will be able to end a periodic tenancy without application to the Tenancy Tribunal when specific grounds apply. Different notice periods are applicable in different situations.

A. For both periodic and fixed-term tenancies, landlords can issue a 14-day notice to terminate the tenancy if:

• Police have laid a charge against the tenant in respect of an assault against the landlord, the owner, a member of their family, or the landlord’s agent.

• Tenants can challenge this notice in the Tenancy Tribunal and in that situation, the landlord will be required to prove the physical assault occurred and that their notice met the requirements.

B. For periodic tenancies, notice periods for termination notices issued by a landlord without Tenancy Tribunal involvement will increase to either 63 or 90 days (depending on the grounds for the notice). Some of these grounds include:

63 days notice

• the owner or a member of the owner’s family requires the property to live in

• the property is required for occupation by employees or contractors of the landlord.

90 days notice

• the property is to be sold

• extensive alterations or redevelopment are to be carried out

• the premises are to be converted into commercial premises, or demolished.

Notice period for tenants

Notice periods for tenants to terminate a periodic tenancy has increased from 21 to 28 days.

termination of the tenancy can only be ordered by the Tenancy Tribunal

For some situations, termination of the tenancy can only be ordered by the Tenancy Tribunal. The Bill has included new reasons for terminating tenancies including some repeated instances of rent arrears and anti-social behaviour. The landlord may apply to the Tenancy Tribunal to end a periodic tenancy if:

• the landlord has issued a tenant three notices for separate anti-social acts within any 90-day period; or

• the landlord has given notice that a tenant has been at least five working days late with their rent payment on three separate occasions within a 90-day period.
  

The following list is provides some examples of existing provisions in the RTA that will continue to apply:

• The tenant has been given a 14-day or longer notice to remedy a breach capable of being remedied and has failed to remedy the breach.

• The tenant is at least 21 days in rent arrears.

• The tenant has caused or threatened to cause significant damage.

• The tenant has assaulted or threatened to assault specified persons.

• The tenant has used the premises for unlawful activity.

• The tenant has abandoned the property and the rent is in arrears.