This is told to me by local landlord. Would say Tenancy Tribunal go about things in an "Interesting" way sometimes.
Hi Colin,
You might appreciate this little twist on the story of giving notice. We bought our latest property on a tenanted basis. The tenants’ fixed term lease had ended a month or two before the property was put on the market. The vendor didn’t bother to get the tenants to sign a new written agreement. A week before we settled, the tenants walked out. According to Tenancy Services legal advisor, because they hadn’t signed a lease, they didn’t have to give notice and we couldn’t recover lost rent from them. Instead, the vendor had to pay us an equivalent sum to compensate us for not rolling over the tenancy.
To which I replied:
"Hi ......
Tenancy services said they didnt have to give any notice whatsoever, or only 3 weeks?
Tenancies become periodic at the end of fixed term. It is a easy to miss issue!"
But the kicker was her reply:
"No notice required at all.
If a fixed term lease ends and the tenants remain in possession of the premises, there is a stand down period of 90 days before the Acts deems there to be a periodic tenancy (s60(2)). At first I thought s 60(1) gave us the right to notice bc it says the tenant’s obligations shall continue in force but of course it didn’t because the fixed term lease didn’t include any notice period. Everyone was taken by surprise – our lawyers, their lawyers, the agents…."
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