Important Changes for Landlords with Fixed-Term Tenancies

There’s a major shift underway for fixed-term tenancies that expire on or after 1 May 2025 - and it gives landlords more flexibility over how those tenancies end or continue.

Under previous legislation, fixed-term tenancies typically rolled over into periodic tenancies unless a landlord had a specific legal reason to terminate the tenancy, the tenant gave notice, or both parties agreed to renew the term. However, the Residential Tenancies Amendment Act 2024, introduced a staged change to this rule.

Ending or renewing a fixed-term tenancy

For tenancies ending on or after 1 May 2025, landlords and tenants can now:

• Let the tenancy roll over into a periodic tenancy (no action required)
• Renew or extend the tenancy for another fixed term (by agreement)
• End the tenancy at expiry (by giving written notice within the effective period).

This means either party can now choose to end the tenancy without needing to give a specific legal reason - but only if they give notice at the right time.

What Is the “Effective Period”?

To validly end a fixed-term tenancy at expiry, written notice must be given no earlier than 90 days and no later than 21 days before the tenancy end date. This applies to both landlords and tenants.

Example:

Tenancy end date: 1 August 2025

Valid notice period: Between 3 May and 11 July 2025.

If neither party gives notice during the effective period, and the tenancy is not renewed, the tenancy will automatically become periodic.

No reason required

One of the key changes is that no reason is required by a landlord to end the tenancy during the effective period. As long as the correct notice is served within the window, landlords and tenants can end the tenancy at expiry - without having to justify why.

Timing and fairness

While 21 days is the legal minimum, we strongly recommend landlords aim to give notice as early as possible- ideally closer to the 90-day mark. For many tenants, three weeks is simply not enough time to secure alternative accommodation. Early notice helps reduce stress and avoid last-minute issues for everyone involved.

Serving the notice

To be valid, the notice must:

• Be in writing
• Clearly state that the tenancy will end on the expiry date
• Be served using a method agreed in the tenancy agreement (such as email or post).

If the notice is given too early, too late, or served incorrectly, it may not be enforceable - so attention to detail is essential.

What this means for landlords

This reform restores important flexibility for landlords: you are no longer required to give a specific legal reason to end a fixed-term tenancy at expiry. But, it also means you’ll need to plan ahead. Missing the notice window means the tenancy becomes periodic by default, and you’ll need to rely on one of the standard periodic tenancies notice periods (e.g. 90 or 42 days) to end the tenancy later.

Harcourts clients - We’ve got you covered

If you’re a Harcourts landlord, your property manager will track tenancy expiry dates, engage with tenants early, and ensure notices are issued correctly and on time. That’s one less thing to worry about.

If you know someone managing their own rental, now’s the time to give them a heads-up. A missed notice window could see them stuck in a tenancy they weren’t planning to continue. And if they’d rather not deal with the paperwork, deadlines, and stress—refer them to us. We’d love to help.

Your recommendation means a lot, and we’re always here to support more landlords to stay compliant, protect their investments, and sleep easy.