Many private landlords offer periodic tenancies or get persuaded to do so by an in-going tenant. It certainly works well for some.
However, we always recommend Fixed-term Tenancies to property owners because it’s the safest option for them. It’ll eliminate potential tenants who are not serious about renting your property from the get-go. It gives you control over the termination date so it can be lined up with peak tenancy times in your market.
(Hint: not in the middle of winter and not during the four weeks over Christmas!)
Most New Zealand Tenancies rollover between the middle of January and the middle of March- So make your tenancies fit this time, that way you get a larger pool of potential tenants and potentially a higher rent.
It’s possible for a tenant to break a Fixed-term Tenancy, but the tenants becomes liable for any expenses incurred in the process as well as rent until a new tenant is secured.
A Fixed-Term Tenancy automatically becomes a Periodic Tenancy 21 days prior to the termination date if neither party has notified the other that it intends terminating, or an extension of the tenancy has been signed. (This is a trap many private landlords fall prey to.) So be sure to get new paperwork signed up well in advance.