Propertyscouts Property Management
RTA Amendment 218-2

RTA Amendment 218-2

The Social Services and Community Committee have now sent the RTA Amendment 218-2 Bill back for its second reading. If this Bill passes its Second Reading, it will go to the Committee of the Whole House. The Bill will then have its Third Reading and, if it passes, it will subsequently receive Royal Assent.

For more information about the Bill click here.

In summary, the bill intends to: 
• increase the security of tenure for tenants who are meeting their obligations by
removing a landlord’s right to use “no cause” terminations to end a periodic
tenancy agreement
• require that fixed-term tenancy agreements must become periodic tenancy
agreements upon expiry unless both parties agree otherwise, or certain conditions
• clarify the rules about minor changes tenants can make to premises
• prohibit the solicitation of rental bids by landlords
• limit rent increases to once every 12 months
• allow for identifying details to be suppressed in situations where a party has
been wholly or substantially successful in taking a case to the Tenancy Tribunal
• clarify the Tenancy Tribunal’s power to suppress names and identifying particulars
of any party or evidence given, if that is in the interests of the parties
and the public interest
• require landlords to permit and facilitate the installation of ultra-fast broadband,
subject to specific triggers and exemptions
• increase financial penalties
• give the regulator new tools to take direct action against parties who are not
meeting their obligations
• make other administrative changes.
Termination by notice
The bill seeks to extend periodic tenancy termination notice periods. The most applicable for most landlords being the termination to allow the owner or a family member to move in. This will increase from 42 days to 63 days’ notice.

Any termination of a periodic tenancy will require a valid justification, for example, for anti-social behaviour. The Tribunal will make the order if it is satisfied the tenant has exhibited anti-social behaviour on three separate occasions, and the landlord must have given written notice each time.
There’s not too many (if any) positives to this bill and it’s looking increasingly likely to receive Royal Assent.

More New Plymouth news »