New Zealand’s rental rules are getting a major overhaul! From stronger tenant protections to enhanced landlord control, the Residential Tenancies Amendment Act 2024 is set to transform how we rent, manage, and live in properties across the country.
The Residential Tenancies Amendment Act 2024, passed into law on 17 December 2024, with the new rules starting to roll out from 30 January 2025 onward.
If you’re a landlord looking to protect your investments or a tenant navigating rental life, staying informed now will save you headaches (and money) later.
So, what’s changing, when does it kick in, and most importantly, how does it affect you?
Let’s break it down.
1. No-Cause Terminations Return: Flexibility, but with Risks
What’s Changing?
- Landlords will be able to issue 90-day notices to end a periodic tenancy without providing a reason.
- Shorter 42-day notices apply in specific situations:
- The landlord (or their family) needs to move in.
- The property is being sold with vacant possession.
- The property is needed for employees/contractors (if stated in the agreement).
- Tenants can terminate a periodic tenancy with 21 days’ notice (down from 28 days).
- Stronger protections against retaliatory notices – tenants can now challenge them up to 12 months after issuance.
When Does It Start?
30 January 2025
What It Means for You
- Landlords: The return of no-cause terminations offers flexibility to manage problematic tenancies, but timing is critical. Issue a notice too soon after complaints about repairs or rent increases? It could backfire as retaliatory.
- Pro Tip: Think carefully before issuing notices to avoid a costly trip to the Tenancy Tribunal.
- Tenants: You’re better protected from unfair terminations and can challenge any notice that feels retaliatory.
What is Retaliatory Action? Retaliatory action occurs when a landlord issues a termination notice or takes adverse steps against a tenant in response to a complaint, request, or exercise of tenant rights. For example:
- A tenant raises concerns about necessary repairs, and the landlord immediately issues a notice to terminate the tenancy.
- A tenant disputes a rent increase, and the landlord threatens eviction.
- A tenant asks for proof that the property is Healthy Homes compliant and the landlord issues a notice to terminate the tenancy.
Under the new protections, tenants can challenge these notices up to 12 months after receiving them, ensuring landlords act fairly and transparently.
2. Tenants Only Need 3 Weeks’ Notice to Move Out
What’s Changing? Faster Moves: 21 Days’ Notice for Tenants
Tenants in periodic tenancies will only need to give 21 days’ notice to vacate, a reduction from the current 28 days. This change makes it easier for tenants to act quickly when new opportunities arise.
When Does It Start?
30 January 2025
What It Means for You
- Tenants: Moving just got easier. Whether it’s for a new job, a better deal, or a change in circumstances, you can act faster.
- Landlords: Shorter notice may feel challenging, but it’s not all bad.
- Pro Tip: Tighter processes around inspections, marketing, and tenant screening will minimise downtime and keep your cash flow healthy.
3. Fixed-Term Tenancies: More Control for Landlords
What’s Changing?
- Fixed-term tenancies will no longer automatically convert into periodic tenancies at the end of the term.
- Either party must give notice between 90 and 21 days before the term expires.
- No reason is required to end a fixed-term tenancy.
When Does It Start?
30 January 2025 (for fixed-term contracts expiring on or after 1 May 2025).
What It Means for You
- Landlords: You’re back in the driver’s seat. Decide early:
- Renew the fixed-term tenancy.
- Let it roll into a periodic tenancy.
- End the agreement entirely.
- Tenants: You get clarity well in advance. No last-minute uncertainty about whether you’ll need to move.
4. Pets Allowed: A New era for renting
What’s Changing?
Landlords cannot unreasonably refuse tenants from keeping pets.
- Tenants must obtain written consent before bringing a pet into the property.
- Landlords can charge a pet bond of up to 2 weeks’ rent (in addition to the standard bond).
- Disability assist dogs are fully exempt – no consent or pet bond required.
When Does It Start?
- Second half of 2025 (specific date TBC, likely late 2025).
- Applies only to new tenancies starting after the effective date.
What It Means for You
- Tenants: Pet-friendly renting is finally on the table.
- Landlords: You still have reasonable grounds to say no, such as:
- The pet’s size or breed (e.g., a Labrador in a studio flat).
- The property’s suitability (e.g., no fenced yard for an outdoor dog).
- Reasonable refusal: A Saint Bernard in a small apartment.
- Unreasonable refusal: A quiet, well-behaved cat in a family home.
- Pro Tip: Always document your reasons for refusing pets. Transparency and fairness are key, and solid records will protect you in disputes.
How Landlords Can Stay Ahead
To keep yourself safe under the new rules, landlords need to be proactive. Here’s how:
- Avoid Retaliation Claims: Be careful when issuing termination notices, especially if tenants recently raised complaints.
- Update Your Pet Policies: Set clear guidelines for pets, charge pet bonds where appropriate, and keep documentation.
- Prepare for Faster Turnarounds: Shorter notice periods mean quicker moves. Have your marketing, inspections, and tenant screening ready to roll.
- Plan for Fixed-Term Tenancies: Decide early whether to renew, transition, or end fixed-term agreements. For example, if your tenant has a fixed-term tenancy of 12 months, it’s important to communicate with them at least 90 days before the term ends. If you decide not to renew the tenancy, ensure you provide a minimum of 21 days’ notice before the fixed term expires. Timing is critical—if you give notice with less than 21 days remaining, such as 20 days, the tenancy will automatically convert to a periodic tenancy, and you will lose the ability to terminate the tenancy.
The Big Picture: A Balanced Market for All
At its core, the Residential Tenancies Amendment Act 2024 aims to strike a fairer balance:
- Tenants gain stronger protections and better access to pet-friendly homes.
- Landlords regain control over fixed-term tenancies and terminations.
But balance comes with responsibility. Landlords must step up with clear processes, fair decisions, and excellent communication to avoid disputes. Tenants should stay informed, act promptly, and know their rights.
Action Steps: How to Stay Ahead of the 2024 Changes
For Landlords:
- Know the rules. Update your tenancy agreements and stay compliant.
- Document everything. Clear records will save you time and money.
- Be proactive. Prepare for shorter notice periods and increased pet requests.
For Tenants:
- Understand your rights, especially around retaliatory notices and pets.
- Plan ahead. Provide 21 days’ notice when you’re ready to move.
The rental landscape is changing—and whether you’re a tenant or a landlord, staying ahead of the curve has never been more important.
Want some help or advice with getting ready for these changes?
Just give us a call on 09 630 2655
