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tenancy

What is the Residential Tenancies Act (RTA) 1986?

Key Takeaway

The Residential Tenancies Act 1986 (RTA) governs the rights and obligations of landlords and tenants in New Zealand's residential rental market. It sets out rules for tenancy agreements, rent, bonds, maintenance, privacy, and how tenancies can end, aiming to ensure fair and lawful rental practices for most residential properties.

The Residential Tenancies Act 1986

The Residential Tenancies Act 1986 (RTA) is the primary legislation governing the relationship between landlords and tenants in New Zealand for most residential properties. It establishes a framework of rules, rights, and obligations to ensure fair and consistent practices within the residential rental sector.

Scope and Application

The RTA generally applies to all residential tenancies, which are agreements where a landlord grants a tenant the right to occupy premises for residential purposes [Source: Residential Tenancies Act 1986, s 3]. A landlord is the owner of premises or the person entitled to possession of the premises, and a tenant is the person granted the right to occupy the premises under a tenancy agreement [Source: Residential Tenancies Act 1986, s 2].

Certain types of arrangements are exempt from the RTA, including premises forming part of a hospital, hostel, or hotel, or premises where the owner also lives and shares facilities (unless the agreement specifies otherwise) [Source: Residential Tenancies Act 1986, s 5].

Key Rules, Rights, and Obligations

Tenancy Agreements

A tenancy agreement is a contract between a landlord and a tenant that sets out the terms of the tenancy. The RTA requires all tenancy agreements to be in writing [Source: Residential Tenancies Act 1986, s 13]. The agreement must include specific information, such as the names and contact details of the landlord and tenant, the address of the premises, the date the tenancy starts, and the amount of rent and bond [Source: Residential Tenancies Act 1986, s 13A].

Rent

Rent is the money paid by the tenant to the landlord for the right to occupy the premises. Key rules regarding rent include:

  • Payment: Rent must be paid by the tenant on the due date [Source: Residential Tenancies Act 1986, s 40(1)(a)]. The landlord must provide a method of payment that is readily available to the tenant and does not incur unreasonable cost [Source: Residential Tenancies Act 1986, s 24AB].
  • Increases: Rent can only be increased 12 months after the date of the last rent increase or the start of the tenancy [Source: Residential Tenancies Act 1986, s 24A]. The landlord must give the tenant at least 60 days' written notice of a rent increase [Source: Residential Tenancies Act 1986, s 25(2)].
  • Unlawful Demands: It is an unlawful act for a landlord to demand or receive rent in advance for more than 2 weeks, or a bond for more than 4 weeks' rent [Source: Residential Tenancies Act 1986, s 18(1), s 19(2)].

Bond

A bond is a sum of money paid by the tenant to the landlord at the start of the tenancy as security against damage or unpaid rent. The RTA sets out specific rules for bonds:

  • Maximum Amount: The maximum bond a landlord can require is 4 weeks' rent [Source: Residential Tenancies Act 1986, s 19(2)].
  • Lodgement: All bonds must be lodged with the Chief Executive of the Ministry of Business, Innovation and Employment (operating as Tenancy Services) within 23 working days of being received by the landlord [Source: Residential Tenancies Act 1986, s 120]. The landlord must provide the tenant with a receipt for the bond paid [Source: Residential Tenancies Act 1986, s 19A].

Maintenance and Repairs

Both landlords and tenants have obligations regarding the maintenance and condition of the premises:

  • Landlord's Obligations: The landlord must provide the premises in a reasonable state of cleanliness and maintain the premises in a reasonable state of repair [Source: Residential Tenancies Act 1986, s 45(1)(a)-(b)]. Landlords are also responsible for ensuring smoke alarms are installed and maintained [Source: Residential Tenancies Act 1986, s 45(1)(bb)-(bc)].
  • Tenant's Obligations: The tenant must keep the premises reasonably clean and tidy, notify the landlord of any damage, and not intentionally or carelessly damage the premises [Source: Residential Tenancies Act 1986, s 40(1)(c)-(e)].

Privacy and Access

Tenants have a right to quiet enjoyment of the premises [Source: Residential Tenancies Act 1986, s 45(1)(d)]. While landlords have rights to inspect the property, these are subject to strict notice periods:

  • Entry for Inspection: A landlord may enter the premises to inspect them at any time between 8am and 7pm, but only after giving the tenant at least 48 hours' but not more than 14 days' notice [Source: Residential Tenancies Act 1986, s 48(2)(b)].
  • Entry for Repairs: For repairs, the landlord must give at least 24 hours' notice [Source: Residential Tenancies Act 1986, s 48(2)(c)].
  • Emergency Entry: In an emergency, a landlord may enter without notice [Source: Residential Tenancies Act 1986, s 48(2)(a)].

Ending a Tenancy

Both landlords and tenants must follow specific procedures and notice periods to end a tenancy:

  • Fixed-term Tenancies: These tenancies automatically end on a specified date, unless the parties agree to renew it or it rolls into a periodic tenancy [Source: Residential Tenancies Act 1986, s 50].
  • Periodic Tenancies: These tenancies continue until either party gives written notice to end it.
    • Landlord's Notice: A landlord generally needs to give 90 days' notice for most 'no-cause' terminations, or 63 days' notice if the owner requires the premises for their own occupation or for an employee [Source: Residential Tenancies Act 1986, s 51]. Specific grounds for termination, such as repeated anti-social behaviour, may require different notice periods and involve applying to the Tenancy Tribunal [Source: Residential Tenancies Act 1986, s 55A, s 55B].
    • Tenant's Notice: A tenant generally needs to give 28 days' written notice to end a periodic tenancy [Source: Residential Tenancies Act 1986, s 52].

Dispute Resolution

The Tenancy Tribunal is an independent judicial body established under the RTA to resolve disputes between landlords and tenants. It can make legally binding decisions and orders, including orders for payment of money, termination of tenancies, and orders for work to be done [Source: Residential Tenancies Act 1986, Part 4]. Applying to the Tenancy Tribunal is a formal process that can be initiated by either a landlord or a tenant [Source: Residential Tenancies Act 1986, s 86].

When to Seek Independent Legal Advice

Anyone involved in a residential tenancy dispute or requiring clarification on their specific rights and obligations under the Residential Tenancies Act 1986 should consider seeking independent legal advice. Information and guidance can be obtained from official bodies such as Tenancy Services or by contacting Community Law Centres for free legal assistance.

Key Resources