Tenancy Law Overview
Published: November 6, 2024
The Residential Tenancies Act 1986 governs all rental properties in New Zealand, establishing clear rights and responsibilities for both landlords and tenants. Understanding these laws protects your investment and prevents disputes.
Key Takeaways
- • The Residential Tenancies Act protects both landlords and tenants
- • Written tenancy agreements are legally required
- • Specific notice periods apply for different situations
- • Tenancy Tribunal resolves disputes when parties can't agree
The Residential Tenancies Act
The Residential Tenancies Act 1986 (RTA) is the primary legislation governing residential rental properties in New Zealand. It has been substantially amended over the years, with major changes in 2020 and 2021 strengthening tenant protections and landlord obligations.
Important: The Act applies to all residential tenancies, including houses, apartments, flats, and boarding houses. It overrides any agreement between landlord and tenant that attempts to reduce or waive these rights. Visit Tenancy Services for official information.
Landlord Responsibilities
As a landlord, you have legal obligations to provide and maintain a safe, healthy property:
Property Standards
- • Provide premises in a reasonable state of repair
- • Comply with all building, health, and safety standards
- • Meet Healthy Homes Standards (heating, insulation, ventilation, etc.)
- • Ensure the property is reasonably clean at the start of tenancy
- • Install working smoke alarms (checked within 28 days of tenancy start)
- • Provide secure locks on doors and windows
Maintenance & Repairs
- • Maintain the property in a reasonable state of repair
- • Respond promptly to maintenance requests
- • Address urgent repairs within 24 hours (e.g., heating in winter, water supply)
- • Complete non-urgent repairs within 90 days (reasonable timeframe)
- • Landlord pays for repairs unless damage caused by tenant
Legal & Administrative
- • Provide written tenancy agreement within 12 working days
- • Lodge bond with Tenancy Services within 23 working days
- • Provide Healthy Homes compliance statement within 90 days
- • Provide insulation statement
- • Give proper notice before property viewings (minimum 24 hours, 7 days for final inspection)
- • Respect tenant's quiet enjoyment of the property
- • Follow correct processes for rent increases and tenancy termination
Tenant Responsibilities
Tenants also have clear obligations under the RTA:
Financial Obligations
- • Pay rent on time
- • Pay for utilities (if specified in agreement)
- • Pay for damage caused by tenant or visitors
- • Pay any metered water charges if agreed
Property Care
- • Keep property reasonably clean and tidy
- • Avoid intentional damage
- • Avoid damage from carelessness
- • Notify landlord of any damage promptly
Living Standards
- • Not cause nuisance to neighbors
- • Not use property for illegal purposes
- • Not sublet without permission
- • Allow entry for inspections (with notice)
End of Tenancy
- • Give proper notice to end tenancy
- • Leave property reasonably clean
- • Remove all belongings
- • Allow for fair wear and tear
Types of Tenancies
Periodic Tenancy
The most common type. No fixed end date, continues until either party gives notice.
- • Tenant gives 28 days notice to end tenancy
- • Landlord must have specific grounds to terminate (90 days notice for most reasons)
- • Can increase rent with 60 days notice (maximum once every 12 months)
- • Automatically converts from fixed-term if no new agreement signed
Fixed-Term Tenancy
Has a specific start and end date (e.g., 12 months). Commonly used for initial tenancies.
- • Neither party can end early without agreement (except specific grounds)
- • Automatically converts to periodic after end date unless renewed
- • Tenant gives 28 days notice before end date if not renewing
- • Landlord gives 90 days notice to not renew (before end date)
- • Cannot increase rent during fixed term unless specified in agreement
Note: As of February 2021, landlords can no longer issue "no cause" terminations for periodic tenancies. They must have specific grounds such as sale, owner moving in, or extensive renovations.
Notice Periods
Different situations require different notice periods:
Tenant Ending Tenancy
Standard notice period
Landlord Ending Periodic Tenancy
With specific grounds (sale, owner moving in, etc.)
Not Renewing Fixed-Term
Notice given before end date
Rent Arrears (21+ days)
Termination for non-payment
Serious Breach
Damage, assault, illegal activity
Bond Requirements
The bond (security deposit) protects landlords while being held securely by Tenancy Services:
- • Maximum: 4 weeks rent for unfurnished, 4 weeks for furnished
- • Must be lodged: With Tenancy Services within 23 working days
- • Interest free: Bond doesn't earn interest
- • Refund process: Both parties must agree, or Tenancy Tribunal decides
- • Common deductions: Unpaid rent, damage beyond fair wear and tear, cleaning costs
Never hold bond privately - it must be lodged with Tenancy Services. Failing to do so can result in penalties.
Rent Increases
Landlords can increase rent, but must follow strict rules:
- • Notice period: 60 days written notice required
- • Frequency: Maximum once every 12 months
- • Market rent: Increase must be in line with market rates
- • Fixed-term: Cannot increase during fixed term unless specified in agreement
- • Challenge: Tenants can apply to Tenancy Tribunal if increase seems excessive
The Tenancy Tribunal
When landlords and tenants can't resolve disputes, the Tenancy Tribunal provides a low-cost resolution process:
Common Tribunal Applications
- • Bond disputes
- • Rent arrears
- • Damage claims
- • Unlawful termination
- • Breach of tenancy obligations
- • Excessive rent increases
Tribunal Process
- • Application fee: $20.44
- • Hearing usually within 3-6 weeks
- • Informal process, no lawyers required
- • Both parties present evidence
- • Binding decision issued
- • Limited appeal options
Landlord Termination Grounds
Since the 2021 law changes, landlords can only terminate periodic tenancies for specific reasons. Understanding these grounds is crucial for compliance:
Valid Termination Grounds (90 Days Notice)
Sale of Property
Property is sold with vacant possession required. Must provide evidence of unconditional sale agreement. Buyer cannot be related to landlord.
Owner or Family Moving In
Landlord, their spouse, or dependent children need to live in the property. Must genuinely intend to occupy for at least 90 days.
Extensive Renovations
Substantial alterations requiring vacant possession. Must provide detailed renovation plans and building consent if required.
Change of Use
Converting to commercial use or demolition. Must provide evidence of resource consent or building consent applications.
Immediate Termination Grounds
Serious Breaches:
- • Assault on landlord or neighbors
- • Intentional damage to property
- • Illegal drug manufacturing/dealing
- • Harassment or threatening behavior
- • Subletting without permission
Financial Breaches:
- • Rent arrears 21+ days (14 days notice)
- • Repeated late rent payments
- • Abandonment of property
- • False information on application
Property Inspection Rights and Procedures
Landlords have the right to inspect their property, but must follow proper procedures to respect tenant privacy and quiet enjoyment:
Inspection Notice Requirements
Routine Inspections:
- • 48 hours notice for general inspections
- • Maximum 4 times per year
- • Must be at reasonable times
- • Cannot exceed 30 minutes duration
- • Written notice specifying date and time
Special Circumstances:
- • 24 hours notice for repairs/maintenance
- • 7 days notice for final inspection
- • No notice required for emergencies
- • 48 hours notice for showing to buyers
- • 24 hours notice for showing to new tenants
Inspection Best Practices
Professional Conduct:
- • Arrive on time and identify yourself
- • Respect tenant belongings and privacy
- • Focus on property condition, not personal items
- • Take photos only with tenant consent
- • Provide written report of any issues found
Documentation Requirements:
- • Keep records of all inspection notices
- • Document property condition with photos
- • Note any maintenance requirements
- • Record tenant concerns or requests
- • Follow up on identified issues promptly
Dispute Resolution and Mediation
Before resorting to the Tenancy Tribunal, parties should attempt to resolve disputes through communication and mediation:
Dispute Resolution Process
Direct Communication
Contact the other party directly to discuss the issue. Many disputes can be resolved through honest conversation and compromise.
Tenancy Services Mediation
Free mediation service available through Tenancy Services. Neutral mediator helps parties reach mutually acceptable solutions.
Tenancy Tribunal Application
If mediation fails, either party can apply to the Tenancy Tribunal for a binding decision. This should be the last resort.
Common Dispute Prevention Strategies
Clear Communication:
- • Detailed written tenancy agreements
- • Regular property inspections
- • Prompt response to tenant requests
- • Clear expectations from start
- • Document all interactions
Professional Management:
- • Experienced property managers
- • Knowledge of current legislation
- • Established procedures and systems
- • Professional tenant screening
- • Neutral third-party mediation
Recent Law Changes
Significant amendments took effect in 2020-2021:
No more "no cause" terminations - Landlords must have specific grounds to end periodic tenancies
Healthy Homes Standards mandatory - All properties must meet heating, insulation, ventilation standards
Rent increases limited - Once per year maximum, 60 days notice required
Extended notice periods - Landlords now need 90 days (up from 42) for most terminations
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