The Residential Tenancies Amendment Act: A Shift in New Zealand’s Rental Sector
UNDERSTANDING THE AMENDMENT ACT
Key Provisions
The Residential Tenancies Amendment Act brings in substantial changes affecting both landlords and tenants across New Zealand. One of the most notable updates is the reinstatement of “no cause” terminations, which allows landlords to end periodic tenancies with 90 days’ notice without having to provide a specific reason. This offers more flexibility in managing tenancies.
The Act also introduces digital bond lodgement, simplifying the process and reducing paperwork. Additionally, fixed-term tenancies will automatically convert to periodic agreements unless otherwise agreed upon.
New pet-related provisions have also been included. Landlords may now charge a pet bond and establish conditions around pet ownership, balancing tenant needs with landlord rights. These reforms aim to create a fairer and more transparent rental framework, and it’s essential for landlords and property managers to fully understand their implications to remain compliant.
Implementation Timeline
The changes introduced by the Residential Tenancies Amendment Act are being phased in gradually. Online bond lodgement came into effect on 17 December 2024, streamlining how rental bonds are handled by moving the system entirely online.
Next, the updates concerning tenancy terminations, including the return of “no cause” terminations, will become effective on 30 January 2025. This gives landlords more discretion when ending periodic tenancies.
On 20 March 2025, updates related to modernized communication methods for delivering notices will take effect, improving the efficiency of correspondence between landlords and tenants. Pet-related provisions, including the ability to charge a pet bond and guidelines for approval, are expected to be introduced later in 2025, with the specific date to be confirmed by an Order in Council.
IMPLICATIONS FOR THE RENTAL MARKET
What It Means for Landlords
The Act introduces significant shifts in landlord responsibilities, offering new tools while demanding greater adherence to regulatory compliance. The reintroduction of 90-day “no cause” terminations allows for more strategic property management and a proactive approach to challenging tenancies.
Landlords can now require a pet bond - capped at two weeks’ rent - as a safeguard against damage caused by animals. However, any denial of a tenant's request to keep a pet must be based on reasonable grounds and provided in writing.
The shift to digital bond lodgement helps reduce manual tasks, improve accuracy, and streamline overall administrative workflows. Staying informed and updating internal processes accordingly is critical for landlords looking to stay competitive and compliant in a changing rental market.
What It Means for Tenants
Tenants also benefit from strengthened rights under the Amendment Act. For instance, the notice period for ending a periodic tenancy has been reduced from 28 days to 21 days, giving tenants greater flexibility when planning moves.
Tenants now also have a clearer path to keeping pets, subject to landlord consent and the possible requirement of a pet bond. This addresses a long-standing concern among renters and supports a more pet-inclusive housing environment.
Importantly, the Act prohibits retaliatory evictions—landlords cannot terminate a tenancy in response to tenants asserting their rights (such as requesting repairs). While tenants are empowered under the new law, they must also meet their responsibilities, particularly regarding damage caused by pets beyond normal wear and tear. These reforms aim to create a more equitable and secure rental system.
GETTING READY FOR COMPLIANCE
Responsibilities for Landlords
To meet the obligations set out in the Residential Tenancies Amendment Act, landlords must update their practices and documentation. A clear understanding of when and how to issue “no cause” termination notices is essential, along with ensuring the correct notice periods are followed.
The transition to online bond lodgement means landlords will need to adopt new systems or digital platforms for bond submissions. Those allowing pets must also update tenancy agreements to reflect bond terms and any associated conditions.
By proactively adapting to these requirements, landlords can avoid disputes and maintain constructive relationships with tenants.
Tenant Responsibilities and Rights
With their rights expanded, tenants must also uphold certain duties to remain in good standing. The ban on retaliatory evictions strengthens tenant protections, particularly for those who speak up about property issues or request repairs.
Those wishing to keep pets must obtain written permission from their landlord and may be asked to pay a pet bond. Understanding and respecting the terms of pet ownership - such as cleaning, maintenance, and liability for damage - is essential.
Tenants should also follow updated notice periods when ending a tenancy and be ready to engage with the new online bond processes. By remaining informed and responsible, tenants contribute to a more respectful and well-functioning rental experience.