Home > Property Management Auckland > Property Management News > Proposed Changes to Tenancy Termination Rules

Proposed Changes to Tenancy Termination Rules

July 2024

Reading Time: 4 Minutes

The Government has proposed changes to the Residential Tenancies Act 1986 (RTA) including changes to the termination of tenancy rules. While not yet law, The Residential Tenancies Amendment Bill was introduced into parliament in May 2024 with changes expected to come into effect in early 2025.

Housing Minister Chris Bishop says: “These changes are part of the Government’s plan to create a well-functioning rental property market, which itself is part of the wider plan to solve New Zealand’s housing crisis."

What are the Proposed Changes to Tenancy Notice Periods?

PERIODIC TENANCIES

Current law	Proposed changes
If a landlord wishes to end a periodic tenancy, their reasons for termination must fit strict criteria.	Landlords will be allowed to issue a 90-day 'no cause' tenancy termination notice to a tenant to end a periodic tenancy without providing a reason or applying to the Tenancy Tribunal.
Landlords must give 63 days’ notice to end a tenancy if: the owner or their family member requires the property as their primary place of residence. the property is normally used as employee accommodation and is needed again for that purpose (this must be in the tenancy agreement). The notice period is 90 days to end a periodic tenancy where: the property has been sold with a requirement to give vacant possession.	Landlords must give 42 days’ notice for these termination grounds.
If a tenant wishes to end a periodic tenancy, they must give at least 28 days’ written notice, unless the landlord agrees to a shorter time.	A tenant's notice period will return to 21 days when ending a periodic tenancy.

FIXED-TERM TENANCIES

Current law

Proposed changes

Fixed-term tenancies automatically convert to periodic tenancies unless:

a landlord gives notice based on one of the specific termination grounds for periodic tenancies;

a tenant gives notice for any reason at least 28 days prior to the end of the tenancy;

the parties agree otherwise (such as renewing the fixed term or terminating the tenancy).

Fixed-term tenancies will automatically convert to periodic tenancies unless:

A landlord or tenant issues notice to terminate a fixed-term tenancy between 90 and 21 days before the term ends. No specific reason is necessary;

the parties agree otherwise (such as opting to renew the fixed term or terminate the tenancy).

Other Proposed Changes to the RTA

Under other proposed changes to the RTA, landlords will be able to charge an additional pet bond.

The change comes alongside the ability for tenants to be held liable for all pet damage beyond "fair wear and tear" and the requirement for tenants to only have a pet with the consent of the landlord.

Find out more about the Pet Bond Announced for Tenants.

What Remains Unchanged?

The following amendments made to the RTA in 2020 will remain unchanged:

Landlords will still be able to seek termination of a periodic tenancy through the Tenancy Tribunal if three notices of anti-social behaviour within 90 days or repeated rent arrears are given.

Landlords can apply to the Tenancy Tribunal for expedited termination of a periodic tenancy on hardship grounds, bypassing the 90-day notice requirement.

Landlords will retain the ability to terminate a tenancy with 14 days' notice in cases where the tenant has assaulted the landlord, their family, or an agent, resulting in criminal charges.

The amendment ensuring tenant safety, allowing withdrawal from a tenancy in cases of family violence, will remain.

Understanding the Residential Tenancies Act

The Residential Tenancies Act 1986 (RTA) regulates the relationships between landlords and tenants, establishing a framework for effective rental agreements. Additionally, it empowers both parties to express valid concerns and establishes explicit expectations for each party.

See our FAQs for the RTA for more essential information about the Residential Tenancies Act and how it affects you.