In line with pre-election promises and its coalition agreements, the Government has announced substantial changes to New Zealand's residential tenancy laws in the form of the Residential Tenancies Amendment Bill 2024 (the Bill).
Introduced on 16 May 2024, this proposed legislation aims to streamline the rental landscape for landlords while boosting the availability of rental properties in the private market. These changes mark a departure from current tenancy laws, which have prioritised tenant security.
Key proposed changes
The Bill introduces several notable changes, affecting both landlords and tenants. Here’s what you need to know if the Bill is passed:
- No-cause terminations: Landlords would be allowed to terminate a periodic tenancy, at any time, without providing a specific reason, as long as they give 90 days’ notice. Landlords will also be able to give notice to end fixed-term tenancies at the expiry of the term, without providing a reason. Fixed-term tenancies will continue to roll into periodic tenancies at the expiry of the term, unless either party gives notice to end the tenancy or the parties agree to renew or extend the fixed-term tenancy.
- Adjusted notice periods: Landlords would only need to give 42 days’ notice to end a periodic tenancy if the landlord requires the property to live in as their main residence, the property is required for the landlord's employee, or the property is being sold with vacant possession. The notice period for tenants who wish to terminate a periodic tenancy would be reduced from 28 days to 21 days.
- Pet policies and bonds: Tenants would be allowed to keep pets with landlord consent or if stated in the tenancy agreement. Landlords could charge an additional 'pet bond' of up to two weeks’ rent, specifically for pet-related damage.
- Clarified smoking restrictions: Landlords will be able to prohibit smoking indoors, except for in outbuildings (for example, a detached garage). The law remains that prohibiting smoking in outbuildings and outdoors (for example on porches and balconies) may only be permitted if it does not interfere with the tenant's rights and obligations under the Residential Tenancies Act, such as the right to quiet enjoyment.
- Family violence protections: Tenants affected by family violence (including dependents) would have the option to end their tenancy under new protective provisions.
- Tribunal processes: Certain Tenancy Tribunal cases would be allowed to be resolved in summary, based on submitted documents, rather than in-person hearings.
Public submissions on the Bill are currently being reviewed, with a Select Committee report pending. It remains to be seen whether any changes to the Bill will be made as a result of the public submissions.
If the Bill is passed, most changes are expected to take effect in early 2025, and they will apply to all tenancies, regardless of when they began. For both tenants and landlords, it will be important to stay informed, and to review existing tenancy agreements in light of the proposed changes.
If you need any further information on the tenancy reforms, contact a member of our property team.
This article was co-authored by Stephanie Snedden (senior associate) and Alvien Benitez (law clerk).
