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tenancy

Who does the RTA apply to? Exemptions explained

Key Takeaway

The Residential Tenancies Act 1986 (RTA) governs most residential rental arrangements in New Zealand, outlining landlord and tenant rights and responsibilities. However, certain types of accommodation, such as holiday homes, educational institution housing, boarder/lodger situations, and some employment-related accommodation, are specifically exempt from the RTA's provisions.

The Residential Tenancies Act 1986 (RTA) is the primary legislation in New Zealand that governs the rights and responsibilities of landlords and tenants in residential rental properties.

What is a Residential Tenancy?

A residential tenancy is a legal arrangement where a landlord grants a tenant the right to occupy a residential property in exchange for rent [Source: Residential Tenancies Act 1986, s 3].

  • A landlord is a person who grants a tenancy of any residential premises, and includes their personal representatives, successors, and assigns [Source: Residential Tenancies Act 1986, s 2].
  • A tenant is a person who is granted a tenancy of any residential premises, and includes their personal representatives, successors, and assigns [Source: Residential Tenancies Act 1986, s 2].
  • A tenancy agreement refers to any agreement (whether written or oral, express or implied) between a landlord and a tenant for the possession of a residential property [Source: Residential Tenancies Act 1986, s 2].
  • A residential property includes any house, flat, apartment, room, or other premises used principally for residential purposes [Source: Residential Tenancies Act 1986, s 2].
  • Rent refers to any money or other consideration payable by the tenant to the landlord in respect of the tenancy [Source: Residential Tenancies Act 1986, s 2].

Application of the Residential Tenancies Act 1986

The RTA generally applies to all residential tenancies in New Zealand, establishing a framework for how these relationships must be managed [Source: Residential Tenancies Act 1986, s 5]. This means that for most people renting a home, the RTA sets out their rights and obligations.

Key Exemptions to the Residential Tenancies Act 1986

Despite its broad application, the RTA does not apply to all living arrangements. Specific types of accommodation are exempt, meaning the rules and protections of the RTA do not cover them. These exemptions are outlined in Schedule 1 of the RTA:

  • Holiday Accommodation: Accommodation provided for the tenant's holiday purposes is exempt [Source: Residential Tenancies Act 1986, Schedule 1, clause 1].
  • Educational Institution Accommodation: Accommodation provided by educational institutions for students is exempt [Source: Residential Tenancies Act 1986, Schedule 1, clause 3]. This commonly applies to student hostels or halls of residence.
  • Employment-Related Accommodation (Service Tenancies): Accommodation provided by an employer for an employee as part of their employment, where the employment agreement specifies that a service tenancy is created, is exempt [Source: Residential Tenancies Act 1986, Schedule 1, clause 4]. This means the accommodation is tied directly to the employment and is not a standard tenancy.
  • Boarders and Lodgers: Where the owner occupies the premises and provides accommodation to boarders or lodgers, the RTA does not apply [Source: Residential Tenancies Act 1986, Schedule 1, clause 5]. A boarder or lodger typically pays for accommodation and may receive services (like meals or cleaning) while living with the owner, who maintains overall control and possession of the premises.
  • Sale and Purchase Agreement: Accommodation where the tenant is a party to an agreement for the sale and purchase of the premises is exempt [Source: Residential Tenancies Act 1986, Schedule 1, clause 6]. This covers situations where someone is renting a property they intend to buy.
  • Agricultural or Horticultural Land: Where the premises are principally used for agricultural or horticultural purposes, they are exempt [Source: Residential Tenancies Act 1986, Schedule 1, clause 7].
  • Licence to Occupy in Specific Large Buildings: Premises forming part of a building comprising not less than six separate dwellinghouses, where the tenant holds a licence to occupy, are exempt [Source: Residential Tenancies Act 1986, Schedule 1, clause 8].
  • Temporary Accommodation: Premises not intended to be occupied for residential purposes for more than 28 days, such as motels or hotels, are exempt [Source: Residential Tenancies Act 1986, Schedule 1, clause 9].
  • Hospitals and Aged Care Facilities: Premises forming part of a hospital, aged care facility, or other similar institution are exempt [Source: Residential Tenancies Act 1986, Schedule 1, clause 10].
  • Social Service Providers (Specified): Premises provided by a social service provider and specified as exempt by regulations are not covered by the RTA [Source: Residential Tenancies Act 1986, Schedule 1, clause 11]. Social service providers may be specified in the Residential Tenancies (Specified Social Service Providers) Regulations 2020.
  • Transitional Housing: Premises used for transitional housing are exempt under specific conditions, particularly if support services are provided to help occupants move into stable, long-term housing [Source: Residential Tenancies Act 1986, Schedule 1, clause 12]. Transitional housing offers temporary accommodation to individuals or families experiencing homelessness or housing insecurity.

It is important to note that while the RTA generally applies to tenancies provided by Kāinga Ora – Homes and Communities, there are specific provisions within the RTA that apply to these tenancies, particularly regarding termination grounds and processes, rather than a full exemption from the Act [Source: Residential Tenancies Act 1986, Part 2A].

Rights and Obligations Under the RTA

Where the RTA applies, it establishes a comprehensive set of rights and obligations for both landlords and tenants. These include rules regarding bond payments, rent increases, maintenance and repairs, privacy, ending a tenancy, and resolving disputes. Adherence to these provisions is mandatory for all covered tenancies.

When to Seek Independent Legal Advice

Individuals seeking to understand their specific situation regarding residential tenancies, particularly concerning the applicability of the Residential Tenancies Act 1986 or its exemptions, should consult with an independent legal professional. Further guidance can be obtained from Tenancy Services, a government agency, or by contacting one of the many Community Law Centres throughout New Zealand for free legal advice.

Key Resources