As you may be aware, the RTA changed significantly in February of this year. The reason for this blog is to discuss the changes around ending tenancies and choosing the best options for property owners moving forward.
If the fixed-term tenancy was signed before the law changed on 11 February 2021
If the fixed-term is for longer than 90 days, unless both parties agree to extend the fixed term, the tenancy will automatically become a periodic tenancy when it ends. This is as it has always been.
If the landlord or the tenant don’t want it to become a periodic tenancy, they need to give notice saying this. Notice that the lease is not being renewed and the tenant must vacate at lease end date, must be given between 90 and 21 days before the expiry date of the fixed term. If the tenant doesn’t want to stay at the property they need to give notice in writing that they will be vacating.
If the fixed-term tenancy was signed on or after 11 February 2021
If the fixed-term is for longer than 90 days, Unless both parties agree to extend the fixed term, the tenancy will automatically become a periodic tenancy when it ends.
If the tenant doesn’t want it to become a periodic tenancy, they need to give 28 days’ notice before the expiry date of the fixed term.
If the property owner doesn’t want it to become a periodic tenancy, they need to give a reason for ending the tenancy and provide notice based on the requirements of that reason. The reasons are the same as for ending a periodic tenancy.
These reasons are as follows:

• The owner or a member of the owner’s family is going to live in the property within 90 days after termination date, for at least 90 days.  – 63 days’ notice
• The property is normally used as employee accommodation and is needed again for that purpose (this must be stated in the tenancy agreement). 63 days’ notice
• The owner is putting the property on the market within 90 days after termination date. – 90 days’ notice
• The property has been sold and the new buyer wants vacant possession – 90 days’ notice
• The landlord is not the owner of the property, and the landlords interest in the property ends e.g. the landlord leases the property and the lease ends – 90 days’ notice
• The property was bought for the use of nearby land for a business activity and is required to be vacant for that purpose (this must be stated in the tenancy agreement). – 90 days’ notice
• The property is to be converted into commercial premises for at least 90 days. – 90 days’ notice
• Extensive renovations are to be carried out that would make it impractical for the tenant to live there (the landlord must take steps to begin this work within 90 days after termination date). – 90 days’ notice
• The property is to be demolished (the landlord must take steps to begin demolition within 90 days after termination date). – 90 days’ notice.

After discussions in the department here, we feel that moving forward, the best option is to continue to offer tenants a fixed term lease, but please be aware that we cannot enforce a renewal or an extension at the end of the lease. Nor can we end the lease for no reason.  A fixed term will still give your tenant and yourself surety for the length of the agreement.
If there is a chance that you want to sell, or move into the property, or any of the above situations apply, the quickest way to get vacant possession is to give the tenants notice as above around 90 days out from the lease end date. If you are unsure of your plans for the property, then a periodic lease will give you more options than a fixed term.

Diane Pullin
Property Management Department Manager