Changes coming to the Residential Tenancies Act 1986
Watch this space!
Changes coming to the Residential Tenancies Act 1986
Whilst the proposed 2025 changes to New Zealand’s Residential Tenancies Act (RTA) have sparked opposing views among stakeholders, we feel that the changes will deliver benefits for both tenants and landlords, creating a more balanced and practical rental market.
For tenants, one of the most significant updates is the potential introduction of pet bonds. This new measure will allow tenants to keep pets in rental properties while giving landlords the confidence that any damages caused by pets can be covered without financial strain. New Zealanders love their furry friends and pet bonds strike a balance by promoting pet-friendly housing options and addressing landlords’ concerns about property maintenance.
The reintroduction of 90-day ‘no cause’ terminations for periodic tenancies offers landlords more flexibility. At the same time, the requirement for landlords to meet clear notice periods ensures tenants have adequate time to find alternative accommodations. This dual approach aims to improve housing security for tenants while maintaining landlords’ ability to adapt to changing circumstances, such as selling a property or moving family members in.
The bill makes the following changes;
- Reintroduction of “no clause” 90-day termination for periodic tenancies
- Reduces landlords’ notice periods from 63 to 42 days, for ending periodic tenancies in specific circumstances
- Reduces tenants’ notice period from 28 days to 21 days for ending periodic tenancies or renew or extend a fixed-term tenancy
- Reintroduces the landlords’ ability to give 21 to 90 days’ notice to end a fixed-term tenancy at the end of its term, without having to provide a specific reason
- Brings in “pet bonds” allowing landlords to ask for up to an additional 2 weeks rent to cover potential damage caused by pets
- Clarifies that landlords can prohibit smoking inside
- Clarifies provisions for withdrawing from a tenancy due to family violence
With measures like pet bonds and improved tenancy rules, the proposed 2025 Residential Tenancies Act changes aim to foster a more cooperative and equitable rental environment. Tenants will enjoy greater housing options and protections, while landlords are equipped with practical tools to safeguard their investments, creating a rental market that works better for everyone.
The changes are due to take place in “early 2025” so keep your ear to the ground to ensure you are up-to-date with legislative requirements. Have a question? Get in touch with Wise Owl Property Management, we are happy to help.
