The Residential Tenancies Act 1986 (Act) sets out the rights and obligations of landlords and tenants in New Zealand. With the passage of the Residential Tenancies Amendment Act 2024 on 17 December 2024, several changes to the Act that will have a wide-ranging impact on residential tenancies across the country will take effect.
CHANGES EFFECTIVE FROM 30 JANUARY 2025
TERMINATION OF PERIODIC TENANCIES
At present, landlords can only terminate a periodic tenancy under specific grounds listed in the Act. Starting from 30 January 2025, landlords will once again be able to end a periodic tenancy by giving 90 days’ notice without needing to provide a specific reason, this is what is known as a ‘no cause’ termination.
Additionally, the notice period for termination due to the following reasons will be shortened to 42 days (currently 90 days):
- The landlord or a family member requires the property as their primary residence for a minimum of 90 days, commencing within 90 days of the termination date.
- The property is needed for a landlord’s employee or contractor (provided the tenancy agreement states that the property is typically used for this purpose).
- The property has been sold (with an unconditional agreement in place), with vacant possession required as part of the agreement.
Meanwhile, tenants will now be able to terminate a periodic tenancy with 21 days’ notice, down from the current 28-day requirement.
These updated rules only apply to termination notices issued on or after 30 January 2025. Any notice already served by a tenant or landlord before this date remains valid and cannot be replaced under the new provisions.
CONVERSION OF FIXED-TERM TENANCIES
Fixed-term tenancies will automatically transition into periodic tenancies upon expiry, unless:
- Either the landlord or tenant provides notice of termination between 90 and 21 days before the fixed term expires; or
- Both parties mutually agree to extend, renew, or otherwise modify the tenancy agreement.
If a tenancy started on or after 11 February 2021 and expires on or before 30 April 2025, the law before these changes will still apply. For fixed term tenancies that expire on or after 1 May 2025, the new law will apply.
TENANTS’ PROTECTION AGAINST RETALIATORY TERMINATIONS
Tenants’ protections against retaliatory termination notices is being expanded. From 30 January 2025, tenants will be able to apply to the Tenancy Tribunal to challenge a termination notice if they believe it was issued as retaliation for exercising their legal rights (ie. requesting maintenance work be carried out at the property). This protection also extends to cases where a landlord issues a termination notice following legal action taken by external parties, such as Tenancy Services or the local council.
Tenants will have up to 12 months to apply to the Tribunal to challenge a termination on these grounds. If they submit an application within 28 working days of receiving the termination notice, they can also request that the notice be cancelled
ADDITIONAL CHANGES ON THE HORIZON
From March 2025, further amendments will take effect, including:
- The Tenancy Tribunal will be able to make decisions based solely on submitted applications and documentation, rather than requiring hearings, unless the case involves tenancy termination, landlord access rights, or boarding house disputes. The Tribunal will consider the parties’ preferences when deciding whether a hearing is necessary.
- Landlords will be permitted to include clauses in tenancy agreements prohibiting smoking indoors. Outdoor smoking restrictions may also be added, provided they align with tenants’ rights to quiet enjoyment under the Act.
- Tenants will be able to withdraw from a tenancy agreement if their child or dependent has experienced family violence by giving at least 2 days’ notice. This extends the current provision allowing tenants to exit a tenancy due to personal experience of family violence.
- Notices and tenancy-related documents may be delivered electronically.
- The limit for consolidated claims involving multiple properties owned by a single landlord will be raised to $100,000 per tenancy, rather than the current $100,000 cap per application.
UPCOMING PET-RELATED CHANGES
New rules concerning tenants’ ability to keep pets will come into effect at a later date, this date is yet to be determined but are anticipated to be implemented in late 2025. Key aspects of the upcoming pet regulations include:
- Tenants will have the right to formally request permission to keep a pet, and landlords may only refuse on reasonable grounds.
- Landlords will be allowed to require a ‘pet bond’—equivalent to a maximum of two weeks’ rent—as a condition of approval for pet ownership. Additional conditions, such as professional carpet cleaning upon tenancy termination, may also be imposed.
- Tenants will be held responsible for any damage caused by their pets beyond normal wear and tear.
- Assistance dogs for individuals with disabilities will be exempt from these provisions, meaning landlords cannot refuse them or require a pet bond.
The pet-related changes will only apply to new tenancies commencing after the provisions come into force. Any existing agreements regarding pets will remain unaffected.
KEY TAKEAWAYS
For landlords and tenants, the most notable changes to be aware of include:
- From 30 January 2025, notice periods will be revised, and ‘no cause’ terminations will be reinstated.
- Tenants will have an extended timeframe and additional grounds for contesting retaliatory terminations.
- The bond lodgement process is now fully online, with additional measures modernising communication methods and enhancing the efficiency of the Tenancy Tribunal.
- New pet-related provisions will be introduced later in 2025, allowing tenants to request pet ownership with landlords having limited grounds for refusal.
With these amendments, the tenancy landscape in New Zealand is set to undergo significant changes, ensuring greater flexibility and clarity for both landlords and tenants.
If you have any questions about residential tenancies or need assistance with an investment property, please get in touch with a member of our property team.