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Giving notice to end a tenancy

24-Feb-2022 10:30:00

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The Residential Tenancies Amendment Act took effect on 11 February 2021 and changed the law on notice periods and reasons for ending a tenancy.

It is important to understand when a tenancy was granted, as this will determine how much notice is required from either the landlord or the tenant, and whether a reason to end the tenancy is required.

If a landlord gives notice to terminate a tenancy without grounds, they are committing an unlawful act, and the tenant can apply to have the termination notice cancelled and exemplary damages up to $6500 awarded.

For tenancies granted prior to 11 February 2021, providing they are on a fixed-term (including renewed or extended tenancies), the old notice periods of between 90 and 21 days apply, and no reason to terminate the tenancy is required. However, if the tenancy becomes a periodic tenancy, the notice period of either a minimum of 63 or 90 days is required and they must provide a reason prescribed in the Act.

For tenancies granted from 11 February 2021, the notice period is either a minimum of 63 or 90 days, and a landlord can only terminate the tenancy using one of the prescribed reasons in the Act. For fixed-term tenancies, the tenancy cannot be terminated prior to the end date (unless mutually agreed or by order of the Tenancy Tribunal), and the termination date can extend past the end date of the tenancy provided that the required notice period of either 63 or 90 days is met.

For all periodic tenancies or fixed-term tenancies granted after 11 February 2021, a tenant is required to give 28 days’ notice providing the notice period ends on or after the tenancy end date. Tenants are not required to provide a reason for termination.

Speak to your Harcourts property manager to understand what type of tenancy is in place for your investment property, and what best suits your investment strategy in the future.

These articles were featured in Property Management Focus Issue 2, 2022

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