Healthy Homes Upgrades and Tenancy Termination in New Zealand
In New Zealand, landlords have a legal obligation to ensure their rental properties comply with the Healthy Homes Standards. This article outlines the legal framework regarding whether a landlord can end a tenancy to carry out these upgrades, focusing on the provisions of the Residential Tenancies Act 1986.
The Healthy Homes Standards Obligation
Landlords are required to ensure their rental properties meet specific standards for heating, insulation, ventilation, moisture ingress and drainage, and draught stopping. This is an implied term of every tenancy agreement [Source: Residential Tenancies Act 1986, s 45(1)(bb); Residential Tenancies (Healthy Homes Standards) Regulations 2019]. The deadline for compliance varies, but all rental properties must comply by 1 July 2024.
Ending a Tenancy by the Landlord
For a landlord to end a periodic tenancy (a tenancy that continues indefinitely until proper notice is given by either party), they must provide the tenant with written notice, and this notice must specify a valid reason recognised by law [Source: Residential Tenancies Act 1986, s 50(1A)].
For fixed-term tenancies (a tenancy for a specific period, e.g., 12 months), a landlord generally cannot terminate the tenancy early unless there is a specific breach by the tenant, the landlord applies to the Tenancy Tribunal for an order of termination, or both parties mutually agree to end the tenancy [Source: Residential Tenancies Act 1986, s 60].
Grounds for Termination Related to Property Works
A landlord may issue a 90-day notice to terminate a periodic tenancy if the premises are to be vacated to allow the landlord to carry out "extensive alterations, redevelopment, or demolition of the premises, and the alterations, redevelopment, or demolition cannot reasonably be undertaken while the premises are occupied" [Source: Residential Tenancies Act 1986, s 51(1)(c)].
Key aspects of this ground for termination are:
- Extensive Alterations: The work must be substantial, not minor repairs or routine maintenance. While Healthy Homes upgrades are often necessary, whether they constitute "extensive alterations" depends on the scope of the work.
- Cannot Be Reasonably Undertaken While Occupied: This is a critical condition. Many Healthy Homes upgrades, such as installing heat pumps, adding insulation to accessible areas, or installing extractor fans, can often be completed while tenants are living in the property. However, if the work is so significant that it poses health and safety risks, requires prolonged lack of essential services, or makes the property uninhabitable during the works, then it may meet this criterion.
If the Healthy Homes upgrades do not meet both these conditions, then this specific ground for termination would not be valid.
Other Grounds for Termination by a Landlord
Landlords have other specified grounds to terminate a periodic tenancy with 90 days' notice, which are distinct from work-related terminations:
- Sale of Premises: The landlord has entered into an unconditional agreement for the sale of the premises, and the purchaser requires vacant possession [Source: Residential Tenancies Act 1986, s 50B].
- Landlord or Family Moving In: The landlord or a member of the landlord's family requires the premises for their own occupation [Source: Residential Tenancies Act 1986, s 50A].
Tenant's Rights and the Tenancy Tribunal
If a tenant receives a notice to terminate and believes it is invalid or was given for an improper purpose (e.g., attempting to terminate for minor Healthy Homes work that could be done while occupied), they may apply to the Tenancy Tribunal for a determination [Source: Residential Tenancies Act 1986, s 77]. The Tenancy Tribunal is an independent judicial body that resolves disputes between landlords and tenants.
When to Seek Independent Legal Advice
If you are a tenant who has received a notice to terminate, or a landlord considering terminating a tenancy for renovations, it is important to understand your specific rights and obligations. Obtaining independent legal advice can help clarify your position under the Residential Tenancies Act 1986. You can contact Tenancy Services for general information or seek free advice from a Community Law Centre.