Reading Time: 3 Minutes
Changes aimed at increasing rental homes have been passed into law, with The Residential Tenancies Amendment Bill successfully passing its third reading. We take a look at what the policies will mean for you.
Rules Around Ending Periodic Tenancies
What the Rules are Currently:
- Since February 2021 Landlords have been unable to end a periodic tenancy without a reason. If a landlord wishes to end a periodic tenancy, their reasons for termination must fit strict criteria. These criteria include the owner moving in, the property being needed for employee accommodation, the sale of the property and changes to the property including change of use of the property, extensive renovations and demolition. Landlords must give 63 days’ notice in these circumstances.
- 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. If there is a group of tenants named on the tenancy agreement, and one of the tenants gives the landlord written notice, this ends the tenancy for all the tenants.
What They are Changing to:
- Landlords will be allowed to issue a 90-day notice to a tenant to end a periodic tenancy without providing a reason or applying to the Tenancy Tribunal.
- Tenants’ notice periods will be returned to 21 days and landlords’ notice periods to 42 days if the tenant wishes to move or the landlord wishes to sell a property.
Potential Benefits for Landlords and Tenants:
- Landlords may be more likely to take a risk and rent their properties to younger tenants or those without comprehensive references. This may assist home occupiers in securing a property.
- Tenants will be able to move in a quicker time frame.
Pet Bonds
Bond Rules Now:
- Landlords are not currently allowed to charge extra bond for allowing a pet and the maximum bond a landlord can charge is the equivalent of four weeks' rent.
How Bond Rules are Changing:
- Pet bonds will be introduced to make it easier for tenants to have pets in rental properties. The pet bond would allow landlords to charge a higher bond than the usual four weeks' worth of rent to cover for damage caused by pets.
Potential Benefits for Landlords and Tenants:
- Landlords may have greater peace of mind around allowing pets in rental properties knowing they are covered for damage.
- Tenants with pets may find it easier to find a property that will allow their pets. Home occupiers may be more likely to feel that a rental property is their home if they are allowed to have a pet, and may stay longer.
Changes to Improve the Clarity and Efficiency of the Residential Tenancies Act
Along with the above changes, changes are being made to improve the clarity and efficiency of the Act. These changes include:
- clarifying that clauses in tenancy agreements prohibiting smoking inside a rental property are enforceable
- facilitating the process for tenancy bonds to be lodged online
- enabling a tenant to utilise family violence withdrawal provisions where their child, or a person who is dependent on them for care, lives at the property and is a victim of family violence
- enabling some decisions in the Tenancy Tribunal to be made on the papers submitted without the requirement of an in-person hearing.
When Will the Changes Happen?
Changes will begin to be implemented in early 2025. The new rules for ending tenancies will take effect from January 30, with pet-related changes, including the option to charge pet bonds, likely to be introduced in late 2025. Changes to improve clarity and efficiency will come into effect from 20 March 2025.
Need a hand managing your rental property? Reach out to our PM Business Development Team at pm@crockers.co.nz or call for a chat on 09 623 5952.
