The New Zealand Government has enacted significant amendments to the Residential Tenancies Act 1986, introducing changes that affect both landlords and tenants. The Residential Tenancies Amendment Act 2024, passed on December 17, 2024, brings forth key updates aimed at modernizing tenancy processes and clarifying termination provisions.
Online Bond Lodgement Now Mandatory
Effective immediately from December 17, 2024, all tenancy bonds must be lodged and paid online. This shift eliminates the need for physical signatures when lodging or topping up a bond, streamlining the process for both parties. Manual lodgements via email and post are no longer accepted, reflecting a move towards a more efficient, digital system.
Reintroduction of ‘No Cause’ Terminations
As of January 30, 2025, landlords have regained the ability to terminate periodic tenancies without providing a specific reason, given a 90-day notice period. Additionally, a 42-day notice is permissible under specific circumstances, such as:
- The owner or their family member requiring the property as their principal residence within 90 days of the tenancy’s end and intending to reside there for at least 90 days.
- An unconditional agreement for the sale of the property necessitating vacant possession.
- The property being needed for occupation by employees or contractors of the landlord, provided this purpose is stated in the current tenancy agreement.
Tenants retain the right to terminate periodic tenancies with a 21-day notice.
Fixed-Term Tenancies: Automatic Conversion to Periodic
Fixed-term tenancies now automatically convert to periodic tenancies upon expiration unless:
- Either party provides notice to end the tenancy between 90 and 21 days before the fixed term concludes, without needing to specify a reason.
- Both landlord and tenant mutually agree on an alternative arrangement.
This change simplifies the process for ending fixed-term tenancies, offering greater flexibility to both parties.
Clarification on Retaliatory Terminations
The amendments also address retaliatory terminations. If a landlord issues a termination notice in response to a tenant exercising their legal rights—such as requesting necessary maintenance—the tenant can apply to the Tenancy Tribunal to have the notice declared retaliatory and unlawful. This provision extends to situations where the termination is in reaction to actions taken by entities like Tenancy Services. Tenants must file such applications within 12 months of receiving the termination notice.
Upcoming Technical Changes
Further technical amendments are set to take effect on March 20, 2025, including:
- Modernizing Notices and Document Delivery: Landlords and tenants can serve notices and documents electronically if an electronic address (such as an email) is provided in the tenancy agreement, though a physical address must still be included.
- Smoking Prohibitions: Clauses in tenancy agreements that ban indoor smoking of tobacco products, except in outbuildings, are now enforceable by the Tenancy Tribunal.
These updates aim to enhance clarity and efficiency within the Residential Tenancies Act, reflecting the evolving landscape of tenancy arrangements in New Zealand.
For a comprehensive overview of all changes and their implications, stakeholders are encouraged to consult the official Tenancy Services website.