Changes to the Residential Tenancies Act 1986 (RTA) come into play this year, introducing new provisions affecting the 1.7 million Kiwis who make up the private rental market.
Key “take effect” dates
- 17 December 2024 – provisions enabling online bond lodgement
- 30 January 2025 – changes to tenancy terminations
- 20 March 2025 – technical changes to the RTA
A win for easier admin
Signatures are no longer required when lodging or topping up a bond. Now, you can lodge and pay your bond online. No more uploading (or posting or emailing) a PDF bond lodgement form. Tenancy Services (part of the Ministry of Business, Innovation and Employment) continues to verify refunds and other transactions.
90-day termination notice
The re-introduction of no-cause terminations will give landlords more control over their properties. On the other side of the fence, tenants may feel less secure about their tenure.
Here’s what’s happening:
- Landlords can end a periodic tenancy by providing 90 days’ notice, without requiring a specific reason.
- The notice period reduces to 42 days if:
- The owner, or their family member, requires the property to live in as their main residence within 90 days of the tenancy ending and remain for at least 90 days
- Or the property is needed for the landlord’s employee or contractor. The property must usually be used or have been obtained for this purpose and this is stated in the current tenancy agreement
- Or the property has been sold with a requirement to give vacant possession under an unconditional sales agreement
- Tenants can end their periodic tenancy with 21 days’ notice at any time
- However, if a termination notice was issued before 30 January 2025, by either the landlord or tenant, then that notice remains valid and cannot be replaced.
Changes to fixed-term tenancies
Fixed-term tenancies automatically become periodic tenancies unless:
- A landlord or tenant gives notice to end a fixed-term tenancy between 90 and 21 days before the fixed term ends
- Or both the landlord and tenant agree on an alternative, if there is more than 90 days remaining before the expiry
Pet bonds
Renters will need to keep pets on their best behaviour.
Later this year, landlords will be able to charge a pet bond of up to two weeks rent for pet-related damage. Tenants will be liable for all pet damage to properties beyond fair wear and tear, whether accidental or deliberate
However, before you add a furry member to your family, check your tenancy agreement for the provision that allows pets. Failing that, ask the landlord for written consent, though be aware that the landlord can withhold consent on reasonable grounds.
If a tenant makes a written request to their landlord to keep a pet, the landlord must:
- Respond to the request within 21 days, stating whether they approve or refuse the request and any reasonable conditions attached to consent
- Landlords may only refuse a tenant’s request to keep a pet on reasonable grounds and must state those grounds
Technical changes
Now we’re getting down in the weeds. Changes under this section of the Residential Tenancies Amendment Act 2024 cover:
- Giving notice and exchanging documents via email
- Smoking and the ability of landlords to prohibit tenants smoking indoors
- The Tenancy Tribunal’s ability to decide matters without holding a hearing
- The opportunity for tenants affected by family violence to end their tenancy
Good and bad
The government has positioned these changes as tenant friendly, indicating that they are likely to boost the availability of rental properties, which will put downward pressure on rents and give tenants a wider range of more affordable properties to choose from.
However, some commentators aren’t so sure, arguing that the changes give more power to landlords, creating housing insecurity for low-income tenants.
At least the pet bonds will make renting to pet owners more attractive.
Changes to the Residential Tenancy Act are coming into play. You should know how you’re affected. Call 0800 GOODWINS for a chat.
