By Dave McCarry | 9 October 2026

Tenant Leaving Early? What Wellington Landlords Can Claim

You get the message on a Sunday night: your tenant has found somewhere else, and they want out in three weeks. There are eight months left on the fixed term.

The first reaction is usually to reach for the agreement and look for a penalty clause. The second is to wonder whether you can keep the bond. Both instincts can cost you money, or land you in front of the Tenancy Tribunal arguing a claim you were never entitled to make.

This is one of the most common questions Wellington landlords ask us, and it's rarely asked calmly. Here's how it works, and how to protect yourself.

The Rule: A Fixed Term Doesn't End Just Because the Tenant Wants It To

Neither party can end a fixed-term tenancy early by giving notice alone. Under the Residential Tenancies Act 1986, it ends early only in a few ways:

• By agreement: you and the tenant agree in writing, ideally with the end date and any costs spelled out.
• By assignment: the tenant finds someone to take over the whole tenancy, and you can't unreasonably refuse.
• By Tenancy Tribunal order: usually for severe hardship caused by an unforeseen change.
• Family violence: an affected tenant can leave on two days' written notice with supporting evidence, with no penalty and no landlord agreement needed.

If none of those apply and the tenant simply leaves, they remain liable under the agreement. But "liable" doesn't mean "owes you everything until June."

Situation 1: You agree to end the tenancy early

This is the cleanest outcome. Put the end date and the costs in writing, and have both parties sign. The agreement sets the date the tenancy ends, so rent doesn't automatically carry on past it.

Under the Act you can recover actual and reasonable costs caused by the early exit, such as:

• Advertising, for example your Trade Me Property listing
• Showing the property and checking applicants, such as reference checks
• Reasonable property management costs directly related to the early termination, including advertising, tenant selection and arranging the replacement tenancy, provided you can justify them

Letting fees can't generally be charged to tenants for a new tenancy, so don't present a standard letting fee as a "break fee". What you can recover is the reasonable expense that the tenant's request caused you, and you should be able to show it. Itemise it, and keep the invoices.

If you and the tenant agree, you can take the agreed amount from the bond through Bond Hub. Without agreement, the Tenancy Tribunal decides.

Situation 2: The tenant leaves without your agreement

Here the original tenancy stays in place. The tenant remains liable under the agreement until a new tenancy starts or the fixed term ends, whichever comes first. That's not the same as owing you everything until June: you must mitigate your loss (more on that below), and you can't be paid rent twice for the same weeks.

In this situation you can claim:

• Rent while the property is vacant, until it's re-let or the fixed term ends
• Reasonable re-letting costs that you can evidence

What you can't claim

• A flat penalty that isn't linked to your real costs
• Rent for a period when a new tenant is already paying you
• Normal wear and tear. That's a separate issue from the early exit.
• Rent for the full remaining term if you haven't made reasonable efforts to re-let

Your Duty to Re-Let (This Is Where Landlords Get Caught)

You have to mitigate your loss. That means taking reasonable steps to find a new tenant: advertising promptly at a realistic rent, showing the property, and considering suitable applicants.

Hold out for a rent well above the market and let the property sit, and a Tribunal adjudicator is unlikely to make the departing tenant pay for it. Reject good applicants for no real reason and the same applies.

The market matters here. Trade Me's rental price index release of 25 September 2026 put Wellington's median weekly rent at $600 for August, so check current listings before you set your asking rent rather than relisting at what the last tenant paid.

A worked example

Say your Brooklyn flat rents at $620 a week and the tenant leaves without your agreement with eight months to run. You list it within days at $620, and a new tenant starts three weeks after the old one left.

• Rent for the 3 vacant weeks: $1,860
• Advertising and viewing costs: whatever you can evidence

Now compare two other outcomes. If the new tenant started the day after the old one left, your rent claim is close to nothing, and you'd only have evidenced re-letting costs. If instead you'd agreed in writing to end the tenancy on a set date, your claim would be the reasonable costs in that agreement, plus any rent you'd both agreed to.

This is an illustration, not a quote. Your figures depend on your tenancy agreement, the market, and your paperwork.

What to Do, Step by Step

1. Don't accept a verbal "I'm leaving." Ask for a written request with a proposed date.
2. Read your agreement. If it sets out conditions for early exit, those matter, though they can't override the Act.
3. Decide whether to agree. A written agreement to end early, with costs spelled out, is usually the fastest and cheapest path. Both of you should sign it.
4. List immediately. The sooner you advertise, the stronger your mitigation position. Keep a record of when and where you listed.
5. Screen the same way you would anyway. Use your normal tenant screening process. Rushing to fill the gap is how problem tenancies start.
6. Keep every cost and receipt. Screenshots of listings, invoices, and viewing records are your evidence.
7. Send an itemised invoice once the new tenancy starts or the fixed term ends.
8. Handle the bond properly. You can't keep a bond just because someone left early. Any claim goes through Bond Hub, and if the tenant disputes it, the Tenancy Tribunal decides.

If the tenant applies to the Tribunal on hardship

A tenant can ask the Tribunal to end the tenancy early where continuing would cause them severe hardship, and the Tribunal weighs their hardship against yours. Choices like a new job elsewhere or buying a house are not usually enough. An unforeseen rent increase or sudden loss of income might be.

If you get notice of an application, don't ignore it. Pull together your agreement, listing records, and costs.

What about assignment?

If a tenant asks to assign the tenancy to someone else, you must consider it. You can check references and recover reasonable costs, but you can't unreasonably refuse. A clause in the agreement banning assignment generally won't stand up. Subletting is different: the original tenant stays liable.

Every tenancy is different, and the line between a reasonable cost and an overreach can be a judgement call. That's where having someone who handles these every week makes a real difference, especially if you're self-managing alongside a full-time job.

Frequently Asked Questions

Can I charge a tenant a break fee in Wellington?

Not as a penalty. You can agree a written exit with costs set out, but those costs must be actual and reasonable, such as advertising and viewing costs. A fee that has no link to what you really spent is hard to defend at the Tenancy Tribunal.

Can I keep the bond if my tenant leaves a fixed-term tenancy early?

No, not automatically. The early exit alone doesn't entitle you to the bond. You can claim amounts the tenant owes, such as unpaid rent or reasonable costs, through the bond refund process, and if the tenant disputes it the Tribunal decides.

How long is a tenant liable for rent after leaving early?

If you haven't agreed to end the tenancy, until a new tenancy starts or the fixed term would have ended, whichever comes first. If you've agreed an end date in writing, the agreement sets it. Once a new tenant is paying rent for the property, the departing tenant can't be charged for the same period.

Do I have to find a new tenant if mine leaves early?

Yes. You have a duty to take reasonable steps to re-let, including advertising at a realistic rent and considering suitable applicants. Failing to do so can reduce what you can recover.

Can a tenant leave a fixed-term tenancy without penalty?

Only in limited cases, such as a family violence situation (two days' written notice with evidence), a Tribunal order, or your written agreement. Otherwise the tenant remains liable for your genuine losses.

The Bottom Line

When a tenant leaves a fixed term early, move fast, list the property, keep your receipts, and claim only what you can evidence. That approach is fair, it's defensible, and it protects you if a dispute reaches the Tenancy Tribunal.

For more on the rules, see Tenancy Services' guidance on ending a fixed-term tenancy.

At Propertyscouts Capital City, we handle the re-letting, the paperwork, and the bond process so an early exit doesn't turn into weeks of stress and lost rent. If you'd rather hand this over to someone who handles it every day, including tenant selection, inspections, maintenance, compliance, and rent collection, we'd be happy to talk. Get in touch with Dave at Propertyscouts Capital City.

About Dave McCarry

Dave McCarry is the owner of Propertyscouts Capital City in Wellington and has worked in property, business, and customer service for many years. Since becoming a property investor in 2009, he has built a strong reputation for practical advice, strong tenant selection, and hands-on property management focused on protecting landlords' investments and maximising returns.