how to tell tenant you are selling the house

Tell Tenants You're Selling in NZ: When 42 or 90 Days Apply

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— 8 min read
Tell Tenants You're Selling in NZ: When 42 or 90 Days Apply

You must tell your tenant in writing as soon as practicable when you put the property on the market, and the tenancy normally continues regardless of a sale. A fixed-term agreement cannot be cut short just because you’ve found a buyer, and specific notice periods apply before you can arrange a valuation, photos, or inspections. Getting the order of operations right protects you legally and keeps the tenancy relationship workable through settlement.

TL;DR:Include the agent’s contact details, marketing timeframe, and whether vacant possession is required; email or deliver a copy, then retain proof of receipt.For periodic tenancies, 42 days’ notice applies after an unconditional sale requiring vacant possession; the 90 day route requires marketing within 90 days of termination.A fixed term tenancy cannot end early solely because of a sale; both parties must agree in writing, with that agreement recorded in bond and settlement paperwork.Buyer viewings require the tenant’s permission; agree on access before booking, give written notice with specific time windows, and group appointments where possible.At settlement, give the tenant the new owner’s name and rent details, transfer the bond through the Bond Administrator, and record inspection findings and rent owed.

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Table of Contents

What to include in the notice of intention to sell and when to give it

Your written notice should cover the basics clearly: that you intend to sell, the agent’s name and contact details, the likely timeframe for marketing, and whether the buyer will need vacant possession. Tenants want to know how this affects their day-to-day life, so spell out what comes next rather than leaving them to guess.

Deliver the notice in person where you can manage it. A short conversation beforehand softens the news and gives the tenant a chance to ask questions on the spot. Follow up immediately with a written copy, by email or letter, and keep a record of when and how it was sent. If a dispute ever arises about timing, that proof of delivery is what protects you.

Once the notice is out, set expectations early:

  • Confirm that rent payments and due dates stay exactly the same during marketing.
  • Explain how inspections will be arranged and how much notice the tenant will get each time.
  • Give a direct contact, you or the agent, for any questions about access or the sale process.

Our guide on how to handle tenants before sale walks through templates you can adapt for this first notice.

New Zealand’s tenancy law sets out exactly when you can end a periodic tenancy around a sale, and the rules differ depending on how far along the sale is. According to Tenancy Services, a landlord can give written notice to end a periodic tenancy once the property has sold under an unconditional agreement that requires vacant possession, with a shorter notice period applying. If the sale hasn’t reached that stage yet and you simply want to prepare the property for sale, a longer notice period applies instead, and if you use that route, the property must go on the market within 90 days of the termination date.

Two pathways for tenancy notice timing

Fixed-term tenancies work differently. You generally cannot end one early just because you’ve decided to sell. The lease terms stand unless both you and the tenant agree in writing to end it sooner.

A few points worth holding onto:

  • 42 days applies once there’s an unconditional sale requiring vacant possession.
  • 90 days applies when you’re giving notice to prepare for sale, with marketing required to start within that window.
  • Fixed-term tenancies need mutual written agreement to end early, sale or no sale.

You must notify your tenant in writing as soon as practicable once the property goes on the market, under section 47 of the Residential Tenancies Act 1986. This isn’t optional, and it isn’t something you can leave until after the first open home.

Access for appraisal, advertising, inspections and photography

Getting a valuation, taking marketing photos, and running buyer inspections all require the tenant’s cooperation, not just a notice slipped under the door. Tenancy Services notes that you need the tenant’s permission before showing potential buyers through the house, and getting that agreement in writing avoids confusion later.

A practical approach looks like this:

  1. Ask for agreement on access before you book anything in with the agent.
  2. Give written notice ahead of each visit, with a specific time window rather than a vague “sometime Tuesday”.
  3. Keep the number of visits to a minimum by grouping viewings where possible.
  4. Share a short checklist with the tenant on what to tidy up or secure before buyers arrive.

Negotiate times rather than imposing them. A tenant who feels consulted is far more likely to keep the place presentable for photos and open homes, which works in your favour as the seller too.

Pro Tip: Batch open homes into one or two slots a week instead of scattering single viewings across the month, it cuts disruption for the tenant and keeps the property looking its best each time.

Our piece on privacy tips when selling property has more detail on managing access without straining the relationship.

Fixed-term versus periodic tenancies: options and tenant choices

How much flexibility you have depends entirely on the tenancy type. If your tenant expresses interest in buying the property themselves, document that conversation in writing from the start, including any offer, timeline, and how the tenancy paperwork will transfer at settlement.

Where a buyer insists on vacant possession, a periodic tenancy gives you a lawful path: the 42 day notice once the sale is unconditional, or the 90 day route if you’re giving notice earlier to prepare for marketing.

A fixed-term tenancy is more rigid:

  • It continues through to its end date regardless of the sale, unless both parties agree otherwise.
  • Any early termination must be recorded in writing, signed by you and the tenant.
  • That written agreement should be referenced in your bond and settlement paperwork so there’s no ambiguity for the new owner.

Practical scripts, templates and step-by-step approach for telling a tenant

Opening the conversation face to face takes the edge off. Something like: “I wanted to let you know in person before anything’s official. We’ve decided to sell the property, and I’ll follow this up with written notice today covering what it means for you and how access will work.”

Your written notice should cover:

  1. The legal fact that the property is going on the market.
  2. How inspections and access will be arranged.
  3. Confirmation that rent and bond arrangements stay unchanged until further notice.
  4. Who to contact with questions, you or the agent.

Keep a simple checklist alongside this, including steps to legalise unconsented work if needed before settlement:

  • Notify the tenant, the agent, and Tenancy Services’ Bond Administrator where relevant.
  • Record every notice date and method of delivery.
  • File copies of all written correspondence for settlement handover.

Pro Tip: Send the written notice by email and keep a read receipt or follow-up text confirming the tenant received it, that small step saves arguments later.

After the sale: bonds, rent payments and notifying the new owner

Once settlement happens, the new owner becomes the landlord automatically, the tenancy itself doesn’t reset. Tenancy Services confirms the tenancy agreement and its terms carry over unchanged, so your main job is making sure everyone has the right details.

A few things to tie off before you hand over the keys:

  • Tell the tenant the new owner’s name and where rent should be paid from settlement day.
  • Arrange the bond transfer or signover with the Bond Administrator and keep copies for your own records.
  • Do a final inspection, reconcile any outstanding rent, and provide receipts so there’s no confusion at handover.

Selling to a direct buyer changes the tenant conversation considerably.

Selling to a direct buyer often means fewer open homes to coordinate, fewer access requests, and more certainty about the settlement date. This allows you to tell your tenant once, with a firm timeline, rather than updating them frequently. Fewer showings can result in less disruption to their routine, and more privacy for everyone involved.

Author note: practical dos and don’ts from experience

Deliver notices in person whenever you can manage it, and always back them up in writing with proof of delivery. Give as much advance warning as possible before inspections, and keep the access windows narrow and specific. Complete bond transfer and settlement paperwork promptly once the sale closes, loose ends here cause most of the post-sale headaches.

— Aaron

If you want fewer inspections and a faster sale: EasySale as an alternative

If the idea of months of open homes and repeated access requests doesn’t suit your tenant or your timeline, a direct sale through EasySale is worth a look. We buy properties in any condition, including tenanted homes, with no agent fees or commission and a settlement date that fits your situation. That means you can tell your tenant the property is sold, who’s buying it, and exactly when they need to pay rent until, all in one straightforward conversation.

Easysale

Our sell house fast page outlines how the process works if you’d rather skip the marketing campaign altogether, and our guide on selling a house with tenants in NZ covers the details specific to tenanted properties.

This article is general information, not a substitute for advice from a qualified lawyer. Consult a qualified legal professional about your own circumstances before acting on anything here.

FAQ

What is the required notice to vacate due to the sale of a property?

For a periodic tenancy, you can give 42 days’ written notice once the property has sold unconditionally and the buyer needs vacant possession, under Tenancy Services guidance. If you’re giving notice earlier, to prepare the property for sale, a 90 day notice period applies instead, and marketing must start within 90 days of that termination date.

What is the hardest month to sell a house?

There’s no single month that holds true everywhere, since local market conditions, listing volumes, and buyer demand all shift the picture. If timing is a concern because of a tenancy situation, a direct sale through EasySale removes the seasonal guesswork by offering a cash sale on a timeline you set.

What are red flags for tenants during a sale?

Warning signs include a landlord who skips written notice, gives little or no warning before inspections, or pressures a tenant to vacate without following the lawful notice periods. Tenants are entitled to written notice as soon as the property goes on the market, under section 47 of the Residential Tenancies Act 1986, and to reasonable notice before any access.

How do I give notice to terminate a tenancy when selling?

Written notice is required, and the correct period depends on the circumstances: 42 days once the sale is unconditional and vacant possession is needed, or 90 days if you’re giving notice to prepare the property for sale. A fixed-term tenancy generally can’t be ended early for a sale unless both you and the tenant agree to it in writing.

Sources

These official sources cover the legal notice periods, access rules, and change-of-landlord process referenced throughout this guide.

  • Guidance on selling a rental property and the applicable notice periods.
  • The change of landlord process and what happens to the tenancy at settlement.
  • The legislative requirement to notify tenants once a property is on the market.

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