Breaking a fixed-term tenancy early in New Zealand

Last updated 23 June 2026. This is general information, not legal advice.

A new job in another city, a relationship that has ended, a house you have decided to buy. Life moves, but a fixed-term tenancy does not move with it. Unlike a periodic tenancy, a fixed term cannot simply be ended with notice. That does not mean you are trapped, though. There are four real ways out, and a landlord who tries to charge you for the whole remaining term is usually overreaching. This guide explains each option and what it costs. In New Zealand a rental agreement is a tenancy, not a lease, so breaking a lease early and ending a fixed-term tenancy early mean the same thing. Everything here ties back to the Residential Tenancies Act 1986 and guidance from Tenancy Services.

A fixed term is fixed

The starting point is simple. During a fixed-term tenancy, neither the tenant nor the landlord can give notice to end it early. You both signed up for the full term, and the law holds you to it. If you just move out and stop paying, you remain liable for the rent, and the landlord can take you to the Tenancy Tribunal for the arrears.

So the goal is not to walk away, it is to end the tenancy properly through one of the routes the law allows. There are four, mutual agreement, assignment, a Tribunal hardship application, and the family violence withdrawal. The right one depends on your situation.

Ending by agreement and the break fee

The simplest exit is to agree with your landlord to end the tenancy early. Many landlords will agree, especially in a tight rental market where the property will re-let quickly. Put the agreement in writing, including the end date and who pays what, so there is no argument later.

The landlord is allowed to charge you a break fee for ending early, but, and this is the part tenants get overcharged on, it can only cover the landlord’s actual and reasonable costs. That typically means the cost of advertising for a new tenant, and perhaps a reasonable share of a letting agent’s re-letting fee. It does not mean the rent for the entire rest of the fixed term, and it does not mean a round-number penalty plucked from the air.

Crucially, the landlord has a duty to mitigate. They must take reasonable steps to find a new tenant rather than leaving the place empty and billing you. And once a new tenant is paying rent, you cannot be charged rent for that same period as well. The landlord cannot collect twice. If you are asked to pay rent for months after the property has been re-let, that is not allowed.

Get the deal in writing before you move out. A short written agreement should record the agreed end date, the exact break fee and that it is full and final, who will advertise the property, and that the landlord will take reasonable steps to re-let and will not charge you rent for any period a new tenant is paying. Putting it in writing is the best protection against a break fee that creeps upward after you have gone.

Assigning the tenancy to someone else

Assignment means handing your tenancy over to a new tenant who takes your place for the rest of the term. It is one of the most useful and least known options. By law, a landlord must consider any request to assign the tenancy, and cannot unreasonably refuse. A landlord also cannot ban assignment in the tenancy agreement, and any clause that tries to is unenforceable.

To use it, find a suitable replacement tenant and put the request to your landlord in writing. The landlord can set reasonable conditions, for example checking the new tenant’s references, and can recover the reasonable costs of the assignment, but they cannot simply say no because they would prefer you stayed. If they refuse without a good reason, that refusal is itself something the Tenancy Tribunal can look at.

Do not confuse assignment with subletting. When you assign, you leave for good and the new tenant takes your place, so you are off the hook. When you sublet, you stay on as the head tenant and let someone else live there, which means you remain fully liable to the landlord for the rent and any damage. If your goal is to get out, assignment is what you want, not subletting.

Applying to the Tribunal for hardship

If your circumstances have changed unexpectedly and continuing the tenancy would cause you severe hardship, you can apply to the Tenancy Tribunal to end the fixed term early. This is the route for genuine, unforeseen change, a sudden job transfer, a serious illness, a relationship breakdown, a major financial blow.

The Tribunal weighs your hardship if the tenancy continues against the landlord’s hardship if it ends early. To succeed, your hardship has to be the greater of the two. If the Tribunal agrees, it ends the tenancy on a date it decides is fair, and it can order one party to pay the other compensation to balance things up. A tenant can also apply on this basis where the rent has been increased by a large, unforeseen amount that will cause serious hardship.

This is not a way out of mild inconvenience or simply changing your mind. The change has to be real and unforeseen, and the hardship genuine. But for people hit by something out of the blue, it is a proper legal release rather than a negotiation.

If you do apply, bring evidence of the change and the hardship, for example a medical letter, a redundancy or job-transfer letter, or proof of a relationship breakdown, along with a clear picture of why continuing is unaffordable or unworkable. Be realistic. Severe-hardship orders are not handed out lightly. Two of the most common reasons people want to leave, taking a new job you have chosen in another city and buying a house, are usually not by themselves enough, because they are choices rather than unforeseen hardship. For those, agreement or assignment is almost always the better route.

Leaving because of family violence

The law gives a tenant who is affected by family violence a fast and protected way out. If you, or a dependent child living with you, are experiencing family violence, you can withdraw from the tenancy by giving the landlord at least 2 days written notice in the approved form, together with qualifying evidence. You do not need the landlord’s agreement, and you cannot be charged a penalty for leaving. This applies to both fixed-term and periodic tenancies.

The evidence is treated confidentially, and the landlord is required by law to keep it private. The approved form and the list of who can provide qualifying evidence are on the Tenancy Services website. If you are in this situation and need support, you can call the family violence information line Are You OK on 0800 456 450, or in an emergency call 111.

What happens at the end of the fixed term

The rules for the end of a fixed term changed on 30 January 2025, and they matter for planning. If neither you nor the landlord gives notice, the tenancy does not just stop on the end date. It automatically continues as a periodic tenancy, and you would then have to give notice in the normal periodic way to leave.

To bring the tenancy to an end on the expiry date, either party has to give written notice within a set window, no later than 21 days before the end date, and no earlier than 90 days before it. The landlord does not need a reason to decline to continue at expiry, they just have to give that notice in time. The short version is, do not assume the tenancy ends itself. Mark the date, and if you want to leave on the end date, give your notice inside that 90 to 21 day window.

The practical playbook

One. Do not just walk out. Leaving and stopping rent keeps you liable for the arrears. Use one of the proper routes.

Two. Try agreement first. Ask the landlord to end it early, in writing, and offer to help find a tenant. Pin down the break fee to actual costs only.

Three. Offer an assignment. If you can find a good replacement tenant, request an assignment in writing. The landlord cannot unreasonably refuse.

Four. Use the Tribunal for genuine hardship. If an unforeseen change has hit you hard, apply for early termination on hardship grounds.

Five. Know the family violence exit. If it applies, the 2 days notice route is fast and penalty free.

Six. Watch for double charging. Keep paying rent until you are released, but never pay rent for a period a new tenant is also paying for.

Free help when you need it

• Tenancy Services on 0800 836 262 for the forms, the rules, and the Tribunal application process.
• Citizens Advice Bureau on 0800 367 222 for free, confidential advice.
• Community Law Centres for free legal help and a detailed tenancy manual.
• Renters United for plain-language tenant guides and advocacy.

Frequently asked questions

Can I break a fixed-term tenancy early in New Zealand

Not by notice alone, but there are four real options. You can agree an early end with the landlord and pay only their actual costs, assign the tenancy to a replacement tenant, apply to the Tenancy Tribunal on grounds of unforeseen severe hardship, or, if you are affected by family violence, withdraw with 2 days notice. Simply walking out keeps you liable for the rent.

How much can a landlord charge to break a lease in New Zealand

Only their actual and reasonable costs, such as advertising for a new tenant and a fair share of any re-letting fee. A landlord cannot charge you the rent for the whole rest of the term, must take reasonable steps to re-let, and cannot charge you rent for any period a new tenant is also paying for.

Can a landlord refuse to let me assign my tenancy

A landlord must consider any request to assign the tenancy and cannot unreasonably refuse. They also cannot ban assignment in the agreement. They can set reasonable conditions, such as checking the new tenant’s references, and recover reasonable costs, but an unreasonable refusal can be challenged at the Tenancy Tribunal.

What happens if I just leave a fixed-term tenancy

You stay liable for the rent until the tenancy is properly ended or re-let, and the landlord can take you to the Tenancy Tribunal for the arrears and any reasonable costs. The landlord must still try to re-let and cannot charge you twice, but walking out is the most expensive way to leave. Use one of the proper routes instead.

Can I end a fixed-term tenancy early because of a big rent increase

You can apply to the Tenancy Tribunal to end the fixed term early where the rent has been increased by a large, unforeseen amount that will cause you serious hardship. The Tribunal weighs your hardship against the landlord’s and decides whether to release you, and on what terms.

Can I sublet instead of assigning my tenancy

You can, but it does not get you out. Subletting means you stay on as the head tenant and let someone else live in the property, so you remain fully liable to the landlord for the rent and any damage. If your aim is to leave the tenancy behind, you want an assignment, where the new tenant takes your place and you are released, not a sublet.

Have you had to get out of a fixed-term tenancy early? Tell us how you did it, and what break fee you were charged, in the comments below.