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Property ManagementEnding A Tenancylevel4HARD

A tenant on a 12-month fixed term tells the property manager in writing, 10 days before the term expires, that she will move out on the expiry date. Neither party gave any earlier notice. What is the effect?

Correct Answer

B) The notice is too late; the tenancy becomes periodic and she must give 21 days' notice.

Under s 60A a fixed term of more than 90 days continues as periodic unless written notice is given in the effective period, from the 90th to the 21st day before expiry, or the parties agree otherwise. A notice given 10 days out misses that period. The tenancy becomes periodic, and the tenant may then end it with at least 21 days' notice under s 51(2A).

Answer Options
A
The notice is valid and the tenancy ends on the expiry date as she intends.
B
The notice is too late; the tenancy becomes periodic and she must give 21 days' notice.
C
The notice is too late, so she is bound to a further 12-month fixed term.
D
The notice is valid only if the landlord agrees within 48 hours of receiving it.

Why This Is the Correct Answer

Missing the s 60A window turns the tenancy periodic, and then the tenant's periodic notice of 21 days applies.

Why the Other Options Are Wrong

Option A: The notice is valid and the tenancy ends on the expiry date as she intends.

Notice not to continue must be given by the 21st day before expiry; 10 days is outside the window.

Option C: The notice is too late, so she is bound to a further 12-month fixed term.

A late notice leads to a periodic tenancy under s 60A, not an automatic new fixed term.

Option D: The notice is valid only if the landlord agrees within 48 hours of receiving it.

The parties can agree to end the tenancy, but the notice itself does not become valid that way.

Background Knowledge for Property Management

Source: https://www.legislation.govt.nz/act/public/1986/0120/latest/whole.html

Exam Tip for Property Management

Late notice at the end of a fixed term means periodic tenancy, then 21 days.

Common Mistakes to Avoid on Property Management Questions

  • โ€ขBelieving a tenant can walk away at expiry with any amount of notice.
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