What is a minimum rental period?
A minimum rental period is the initial period during which the tenant and the landlord cannot terminate the rental agreement. It is usually 12 months, but the parties may agree on a shorter or longer period, or leave it out entirely.
What happens after the minimum rental period?
This depends on the type of rental agreement.
Model A (indefinite rental agreement)
Model A does not end when the minimum rental period expires. The agreement continues indefinitely.
The tenant can terminate the agreement by giving one full calendar month's notice. The landlord cannot simply terminate the agreement: they need a compelling reason.
Model B (fixed-term rental agreement)
A Model B agreement usually has no minimum rental period. The agreement has a pre-agreed end date, but the tenant can terminate it at any time by giving one full calendar month's notice.
The landlord cannot terminate the agreement before the agreed end date.
Model C (fixed-term rental agreement with a diplomatic clause)
What happens next depends on the duration of the agreement:
- If the agreement will continue after the minimum rental period, the tenant can terminate it by giving one full calendar month's notice. The landlord cannot terminate it before the agreed end date.
- If the minimum rental period is equal to the total duration of the agreement, neither the tenant nor the landlord can terminate it early. The agreement ends on the agreed date, or the parties agree to extend it. After the extension, there is no longer a minimum rental period.
Model D (temporary rental agreement under the Vacancy Act)
For Model D, the minimum duration of the agreement is usually six months. After this period, the tenant can terminate the agreement by giving one full calendar month's notice.
The landlord can also terminate the agreement, but must give the tenant at least three months' notice.
Separate rules apply to rental homes that are for sale: the minimum duration of the agreement is three months, and the landlord must give at least two months' notice.