Key Changes: What Landlords and Tenants Need to Know
The Residential Tenancies Amendment Act 2024, which passed on December 17, introduces key updates to the Residential Tenancies Act 1986. These revisions aim to enhance the tenancy process, providing clearer guidance for both landlords and tenants across New Zealand.
1. Online Bond Lodgement
Starting immediately, all tenancy bonds must be lodged and paid online. The need for physical signatures and PDF forms has been removed, streamlining the process. Email and postal bond lodgements are no longer allowed, simplifying the bond system and modernizing how transactions are handled.
2. Ending Tenancies
Periodic Tenancies (effective from January 30, 2025):
- Landlords may now end a periodic tenancy with 90 days’ notice, no reason required.
- A 42-day notice is allowed if the property is needed for the landlord’s or a family member’s primary residence, as part of an unconditional sale, or for occupancy by employees or contractors.
- Tenants can terminate their periodic tenancy by giving 21 days’ notice.
- Landlords are prohibited from terminating a tenancy in retaliation to tenants exercising their rights, with penalties for unlawful terminations.
Fixed-Term Tenancies:
- Fixed-term tenancies will automatically convert to periodic tenancies unless ended between 90 and 21 days before the expiry date by either party or if both agree to an alternative arrangement.
- For tenancies that started on or after February 11, 2021, and end before April 30, 2025, the previous rules will still apply. The new law will take effect for tenancies ending after May 1, 2025.
3. Retaliatory Termination
Tenants now have the ability to challenge termination notices they believe were issued in retaliation for asserting their rights. This must be done within 12 months, with an option to request cancellation of the notice within 28 working days.
4. Updated Communication Methods
From March 20, 2025, landlords and tenants will be able to send notices and other documents electronically, provided an email address or similar electronic communication method has been specified in the tenancy agreement. The requirement for a physical address remains in place.
5. Smoking Rules
The amendments clarify that smoking bans indoors (except in outbuildings) are now enforceable through the Tenancy Tribunal. If landlords want to extend the smoking ban to other areas of the property, they must ensure it is in line with tenants’ rights, such as their right to quiet enjoyment.
6. Family Violence Protections
If a tenant or their children experience family violence during the tenancy, they can end the tenancy with a 2-day notice, provided they submit qualifying evidence. This will be done without penalty or needing the landlord’s agreement.
7. Pet Policy and Bond Requirements (Effective Date TBD)
New provisions will soon require tenants to obtain written consent from landlords to have a pet in their rental property. Landlords can only refuse consent on reasonable grounds. Additionally, a pet bond, up to two weeks’ rent, may be required. Tenants will also be responsible for any damage caused by their pets beyond regular wear and tear. These rules will not affect existing tenancies unless explicitly stated in the agreement.
8. Tenancy Tribunal Jurisdiction
The Tenancy Tribunal’s jurisdiction is clarified, ensuring that if multiple tenancies are involved in one case, the $100,000 threshold applies separately to each tenancy, not the case as a whole.
Conclusion
The Residential Tenancies Amendment Act 2024 introduces practical updates designed to clarify and modernize tenancy laws. Changes related to online bond payments, tenancy termination, retaliatory actions, and pet management will create a fairer, more efficient system for both landlords and tenants. Stay informed on these updates, particularly the upcoming changes that will be phased in over the next few months.
If you have any questions or concerns about these changes, you can contact us at AKL Rentals for a free consultation.