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tenancy

RTA updates: What changed in the latest amendments?

Key Takeaway

Recent amendments to the Residential Tenancies Act 1986 have significantly changed tenancy laws in New Zealand. Key updates include restrictions on ending periodic tenancies, limits on rent increases to once every 12 months, and new rules regarding minor changes and assignment for tenants. Landlords must now provide specific reasons for terminating periodic tenancies.

Understanding the Recent Amendments to New Zealand's Residential Tenancy Laws

New Zealand's Residential Tenancies Act 1986 (RTA), the primary legislation governing the rights and obligations of landlords and tenants, has undergone significant amendments in recent years. These changes, primarily introduced by the Residential Tenancies Amendment Act 2020, came into effect on 11 February 2021, and aim to provide greater security and fairness for tenants, while also clarifying landlord responsibilities.

Changes to Ending Tenancies

One of the most significant changes relates to how tenancies, particularly periodic tenancies (a tenancy that continues indefinitely until proper notice is given by either party [Source: Residential Tenancies Act 1986, s 60(2)]), can be ended by landlords. Previously, landlords could end a periodic tenancy without providing a specific reason with 90 days' notice. This is no longer permitted.

Under the updated law, landlords must provide a specific, legally prescribed reason to terminate a periodic tenancy. The notice periods have also changed depending on the reason given:

  • Owner or Family Member Moving In: A landlord must give 63 days' notice if the premises are needed as the principal place of residence for the landlord or a member of the landlord's family (spouse, civil union partner, de facto partner, parent, grandparent, child, grandchild, or sibling) [Source: Residential Tenancies Act 1986, s 51A].
  • Sale with Vacant Possession: A landlord must give 90 days' notice if the premises are to be sold with vacant possession within 90 days of the termination date [Source: Residential Tenancies Act 1986, s 51B].
  • Extensive Renovation, Demolition, or Redevelopment: A landlord must give 90 days' notice if the premises are to be demolished, or if the landlord is undertaking extensive renovations, or if the premises are to be converted into commercial premises [Source: Residential Tenancies Act 1986, s 51BA].
  • Landlord's Business Premises: A landlord must give 90 days' notice if the premises are required for occupation by employees of the landlord, or if the premises are required for the landlord's business as commercial premises and this is specified in the tenancy agreement [Source: Residential Tenancies Act 1986, s 51C, s 51CA].
  • Repeated Anti-Social Behaviour: A landlord can apply to the Tenancy Tribunal to end a tenancy if the tenant has engaged in three separate instances of anti-social behaviour (harassment or any other act or omission that causes or is likely to cause alarm, distress, or nuisance to any other person, or that is an interference with the peaceful enjoyment of another person's home) within a 90-day period, and the landlord has given written notice of each instance [Source: Residential Tenancies Act 1986, s 51D].
  • Rent Arrears: A landlord can apply to the Tenancy Tribunal to end a tenancy if the tenant is 21 working days behind in rent on three separate occasions within a 90-day period, and the landlord has given written notice on each occasion [Source: Residential Tenancies Act 1986, s 51E].

Fixed-Term Tenancies Automatically Convert

Fixed-term tenancies (a tenancy for a set period of time, e.g., 12 months [Source: Residential Tenancies Act 1986, s 60(1)]) now automatically convert to periodic tenancies at the end of the fixed term unless:

  • The tenant gives notice to end the tenancy.
  • The landlord gives notice to end the tenancy for a specific reason permitted by the RTA.
  • Both parties agree to extend the fixed term or sign a new fixed-term tenancy agreement [Source: Residential Tenancies Act 1986, s 60(2)].

Restrictions on Rent Increases

Landlords are now limited to increasing the rent once every 12 months for a given tenancy. This differs from the previous rule, which allowed increases every 6 months [Source: Residential Tenancies Act 1986, s 24(1)(b)]. Proper written notice of any rent increase must still be given to the tenant [Source: Residential Tenancies Act 1986, s 24(2)].

Rules for Minor Changes

Tenants can now make minor changes (a change that does not materially affect the premises, does not require consent from other bodies, and can be removed without damage, or if not removable, has a negligible impact on the landlord's ability to let the premises to future tenants) to the rental property, provided they first seek the landlord's consent. Landlords cannot unreasonably withhold consent to a minor change [Source: Residential Tenancies Act 1986, s 42B(1), s 42B(2)]. Examples of minor changes might include installing earthquake straps for furniture, hanging pictures, or installing a dishwasher if the property has suitable plumbing [Source: Residential Tenancies Act 1986, s 42B(5)].

Assignment of Fixed-Term Tenancies

For fixed-term tenancies, tenants can now assign (transfer their tenancy agreement to another person) their tenancy with the landlord's consent. Landlords cannot unreasonably withhold consent to an assignment. However, landlords can include a condition in the tenancy agreement that prohibits assignment [Source: Residential Tenancies Act 1986, s 42AAB, s 44(1)].

Fibre Broadband Installation

Tenants now have the right to request the installation of fibre broadband (high-speed internet access using fibre optic cables) at the property, provided it can be installed at no cost to the landlord, and the installation does not require any alterations to the building's common property or affect the weathertightness or structure of the building. The landlord cannot unreasonably withhold consent [Source: Residential Tenancies Act 1986, s 42C].

Prohibitions on Soliciting Rental Bids

Landlords or their agents are now prohibited from inviting or encouraging tenants to offer more than the advertised rent for a property. This aims to prevent rental bidding (when prospective tenants offer to pay more than the advertised rent to secure a property) [Source: Residential Tenancies Act 1986, s 20A].

When to Seek Independent Legal Advice

Navigating the complexities of residential tenancy law can be challenging. Individuals involved in disputes or with specific questions about their rights and obligations under the Residential Tenancies Act 1986 are encouraged to seek independent legal advice. Information and assistance can be obtained from official bodies such as Tenancy Services or by contacting Community Law Centres for free legal advice.

Key Resources