The New Zealand Government has proposed significant changes to the Residential Tenancies Act 1986 (RTA), including modifications to tenancy termination rules. Although these changes are not yet law, the Residential Tenancies Amendment Bill was introduced to Parliament in May 2024, with expected implementation in early 2025.
Housing Minister Chris Bishop has stated: “These changes are part of the Government’s plan to create a well-functioning rental property market, which is integral to solving New Zealand’s housing crisis.”
What Are the Proposed Changes to Tenancy Notice Periods?
Periodic Tenancies
Current Law:
- Landlords must provide a specific reason to end a periodic tenancy.
Proposed Changes:
- Landlords will be able to issue a 90-day ‘no cause’ notice to end a periodic tenancy without providing a reason or going to the Tenancy Tribunal.
- Landlords must provide 63 days’ notice if the property is needed for the landlord or their family’s primary residence or if it is used as employee accommodation and is needed again (this must be specified in the tenancy agreement).
- A 90-day notice period is required if the property is sold with a condition to give vacant possession.
- Notice periods for these grounds will be reduced to 42 days.
- Tenants will need to give 21 days’ notice to end a periodic tenancy, down from the current 28 days.
Fixed-Term Tenancies
Current Law:
- Fixed-term tenancies automatically convert to periodic tenancies unless specific actions are taken by either party.
Proposed Changes:
- Fixed-term tenancies will still convert to periodic tenancies automatically unless:
- Either party gives notice between 90 and 21 days before the term ends without needing to provide a reason.
- Both parties agree to renew the fixed term or end the tenancy.
Other Proposed Changes to the RTA
- Landlords may charge an additional pet bond.
- Tenants will be responsible for pet damage beyond “fair wear and tear.”
- Tenants will need landlord consent to keep pets.
For more details, see our article on the Pet Bond Announced for Tenants.
What Remains Unchanged?
The following amendments from 2020 will still apply:
- Landlords can seek termination of a periodic tenancy through the Tenancy Tribunal for repeated anti-social behavior or rent arrears.
- Landlords may apply for expedited termination on hardship grounds.
- Immediate termination with 14 days’ notice is still allowed if the tenant has assaulted the landlord, their family, or an agent, leading to criminal charges.
- The amendment ensuring tenant safety in cases of family violence will remain in effect.
Understanding the Residential Tenancies Act
The Residential Tenancies Act 1986 (RTA) governs landlord-tenant relationships, outlining responsibilities and rights for both parties. It provides a framework for rental agreements and helps address concerns effectively.
For more essential information about the RTA and its impact, check our FAQs.
Going Forward
Reliance Auckland Property Management will keep you informed about these upcoming changes. For advice on managing your rental property or for any inquiries, contact our Property Management team at info@relianceproperty.co.nz or call us at 0800 131 141.