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tenancy

Boarding house tenancies vs. Standard tenancies

Key Takeaway

New Zealand residential tenancy law distinguishes between standard tenancies and boarding house tenancies, each with unique rules, rights, and obligations under the Residential Tenancies Act 1986. Key differences include the number of tenants, exclusive possession of the property, notice periods for ending the tenancy, and bond limits. Understanding these distinctions is crucial for landlords and tenants.

Understanding Residential Tenancies in New Zealand

New Zealand's residential tenancy law is primarily governed by the Residential Tenancies Act 1986 (RTA). This legislation sets out the legal framework for the relationship between landlords (property owners who grant the right to occupy a property) and tenants (individuals who pay to occupy a property). The RTA ensures that basic rights and responsibilities are met, aiming for fair and transparent rental arrangements.

The RTA covers two main types of tenancies: standard tenancies and boarding house tenancies. While both fall under the RTA's umbrella, specific provisions apply to each, leading to important differences in rights and obligations.

Standard Tenancies

A standard tenancy, also known as a residential tenancy, typically involves a landlord granting a tenant or group of tenants the exclusive right to occupy an entire residential property in exchange for rent [Source: Residential Tenancies Act 1986, s 2]. These tenancies can be either fixed-term or periodic.

  • Fixed-term tenancy: A tenancy agreement for a specific period of time, after which it automatically becomes a periodic tenancy unless specific steps are taken to end or renew it [Source: Residential Tenancies Act 1986, s 60A, s 66D].
  • Periodic tenancy: A tenancy agreement with no fixed end date, continuing until either the landlord or tenant gives notice to terminate it [Source: Residential Tenancies Act 1986, s 2].

Key rights and obligations under a standard tenancy include:

  • Rent: Landlords can generally only increase rent once every 12 months, and tenants must be given 60 days' written notice [Source: Residential Tenancies Act 1986, s 24].
  • Bond: A security deposit paid by the tenant to the landlord, which cannot exceed the equivalent of 4 weeks' rent [Source: Residential Tenancies Act 1986, s 18]. The bond must be lodged with Tenancy Services within 23 working days [Source: Residential Tenancies Act 1986, s 19(2)].
  • Notice periods for termination: For a periodic tenancy, a landlord must generally give 90 days' notice to end the tenancy without cause, or shorter periods for specific reasons (e.g., owner requiring the property for themselves or family, or sale of the property) [Source: Residential Tenancies Act 1986, s 51]. Tenants must give 28 days' notice [Source: Residential Tenancies Act 1986, s 50]. For fixed-term tenancies, they generally become periodic at the end of the term unless specific conditions are met to terminate [Source: Residential Tenancies Act 1986, s 60A].
  • Maintenance: Landlords are generally responsible for maintaining the premises in a reasonable state of repair, while tenants are responsible for keeping the premises reasonably clean and tidy and for not causing damage [Source: Residential Tenancies Act 1986, s 45].
  • Privacy: Landlords must respect the tenant's right to quiet enjoyment and can only enter the premises under specific conditions and with appropriate notice [Source: Residential Tenancies Act 1986, s 38, s 48].

Boarding House Tenancies

A boarding house tenancy is a specific type of residential tenancy covered by Part 2B of the RTA. It applies to premises where rooms are let to 3 or more tenants, each tenant has the right to occupy a room (not the whole premises), and the tenants share facilities such as toilets, cooking facilities, or laundries [Source: Residential Tenancies Act 1986, s 66B]. The owner or manager of the boarding house often provides some services, such as cleaning or linen.

Key differences and specific rules for boarding house tenancies include:

  • Number of tenants: A boarding house must have rooms let to 3 or more tenants [Source: Residential Tenancies Act 1986, s 66B].
  • Exclusive possession: Tenants in a boarding house typically have exclusive possession of their individual room but share common areas and facilities with other tenants [Source: Residential Tenancies Act 1986, s 66B].
  • Bond: The bond for a boarding house tenancy cannot exceed the equivalent of 2 weeks' rent [Source: Residential Tenancies Act 1986, s 66G]. This bond must also be lodged with Tenancy Services [Source: Residential Tenancies Act 1986, s 66H].
  • Notice periods for termination: Notice periods are generally much shorter than for standard tenancies:
    • Landlord notice: For rent arrears, the landlord may give 2 days' notice [Source: Residential Tenancies Act 1986, s 66J]. For a breach of tenancy agreement, 48 hours' notice [Source: Residential Tenancies Act 1986, s 66K]. For general termination without cause (if periodic), 28 days' notice [Source: Residential Tenancies Act 1986, s 66L].
    • Tenant notice: A tenant in a periodic boarding house tenancy must give 48 hours' notice to terminate [Source: Residential Tenancies Act 1986, s 66L].
  • Tenancy agreement: While an oral agreement is binding, a written boarding house tenancy agreement is advisable [Source: Residential Tenancies Act 1986, s 13(1), s 66F].
  • Rules of the boarding house: The landlord can establish reasonable house rules, which must be displayed prominently and given to tenants [Source: Residential Tenancies Act 1986, s 66I].

Key Differences Summarised

Feature Standard Tenancy Boarding House Tenancy
Governing Part Residential Tenancies Act 1986 (General) Residential Tenancies Act 1986, Part 2B
Premises Occupied Exclusive possession of entire property Exclusive possession of a room, shared facilities
Minimum Tenants No minimum specified (can be one) 3 or more tenants [Source: RTA, s 66B]
Bond Limit Up to 4 weeks' rent [Source: RTA, s 18] Up to 2 weeks' rent [Source: RTA, s 66G]
Landlord Notice (Periodic, No Cause) 90 days [Source: RTA, s 51] 28 days [Source: RTA, s 66L]
Tenant Notice (Periodic, No Cause) 28 days [Source: RTA, s 50] 48 hours [Source: RTA, s 66L]
Landlord Entry Generally 24-48 hours' notice required [Source: RTA, s 48] Generally 24 hours' notice required [Source: RTA, s 66M]

When to Seek Independent Legal Advice

It is recommended that individuals seek independent legal advice from qualified professionals for specific situations, interpretation of legal documents, or complex disputes. Information provided here is for general understanding. Organisations such as Tenancy Services and Community Law Centres (https://communitylaw.org.nz/) provide free advice and guidance on tenancy matters in New Zealand.

Key Resources