On 30 January 2025, significant updates to the Residential Tenancies Act 1986 come into effect, following the introduction of the Residential Tenancies Amendment Act 2024. These changes aim to create a fairer balance between landlords and tenants while addressing common issues in New Zealand’s rental market.
If you’re a landlord or tenant, here’s a breakdown of what you need to know:
1. The Return of 90-Day ‘No Cause’ Terminations
Landlords can now terminate periodic tenancies without providing a specific reason, as long as they give tenants at least 90 days’ notice.
2. Adjustments to Notice Periods
- For Landlords: A 42-day notice can be issued in specific cases, such as:
- The property is required as the owner’s or their family member’s primary residence.
- The property is needed for an employee (as specified in the tenancy agreement).
- The property has been sold with vacant possession as a condition of sale.
- For Tenants: Tenants must provide 21 days’ notice (reduced from 28 days) to terminate a periodic tenancy.
3. Changes to Fixed-Term Tenancies
Fixed-term tenancies will automatically roll over into periodic tenancies unless:
- Either party (landlord or tenant) gives notice to end the tenancy between 90 and 21 days before the term ends.
- Both parties agree to renew the fixed term or end the tenancy altogether.
This ensures tenants aren’t automatically forced out of their homes while giving both parties flexibility.
4. Additional Changes
20 March 2025 will see further updates, including:
- Notices and documents can now be sent via email, streamlining communication.
- Tenancy agreements can enforce no-smoking clauses indoors.
These changes modernize how landlords and tenants interact while reducing disputes.
5. Introduction of Pet Bonds and Policies (Date to Be Announced)
Recognizing the growing demand for pet-friendly rentals, future updates will allow:
- Landlords can require a pet bond of up to two weeks’ rent to cover damages (in addition to the standard bond).
- Tenants can keep pets with the landlord’s written consent, which cannot be unreasonably withheld.
Landlords may refuse pet requests for valid reasons, such as the property being unsuitable or risks posed by the pet.
What Does This Mean for Landlords and Tenants?
- Landlords: Review tenancy agreements and processes to ensure compliance with the new rules. Consider how upcoming pet-related changes may impact your rental policies.
- Tenants: Familiarise yourself with your rights, especially the updated notice periods and future pet rules. Clear communication with your landlord remains essential.
The Residential Tenancies Amendment Act 2024 introduces changes that benefit everyone in the rental market. By understanding these updates, landlords and tenants can work together for a fairer and more positive renting experience.
Need help navigating these changes? Our Angels are here to support you every step of the way. Contact us today!