This is the first of three methods of terminating periodic tenancies.
Please note that you may use all three of these methods simultaneously in periodic tenancies. Any one does not rule out the use of any other one at the same time.
The new law is known colloquially as three strikes and you are out. Technically it is made under Section 55(1) (aa) of the Residential Tenancies Act.
This new law does not require the tenant to do anything in response to the Notice. To use a simple analogy, it is very much like a photograph. In other words, it is a snapshot of time and the tenant cannot do anything to remedy this. That is why it can be quite effective.
- The first requirement is that the rent must be at least 5 working days in arrears. This means the rent you are talking about is rent for a working day. A working day is defined in Section 2 of the Residential Tenancies Act.
A working day is any day that is not a weekend day, a public holiday or a day observed as an anniversary for a particular region.
Please note that there may be additions to public holidays in the future and there will be new one from 2022 – Matariki New Year, so for safety’s sake always exclude public holidays. Also note the inclusive dates for Christmas, Easter and other days.
If the tenant is meant to pay rent every Thursday and failed to pay it on April 1, they would be one working day in arrears. Now because Good Friday is a public holiday, Saturday and Sunday fall in the weekend and Easter Monday is also a public holiday, the second working day of rent arrears would be Tuesday April 6. So, if the tenant failed to pay rent in the next three working days – being Wednesday, Thursday and Friday – you could issue a rent arrears notice under Section 55.
- The second requirement is that you serve a notice on the tenant. This notice is templated and available here in Total Tenancy. If the tenant is five working days in arrears, you can serve this notice.
Please be careful to fill out the notice correctly. Failure to do so will have consequences for your company.
So how do you fill it out this notice correctly? How do you serve the notice correctly to the tenant? And how does the rolling 90 day period affect notice numbers? Watch the full training Snippet in Total Tenancy.