Understanding the Residential Tenancies Amendment Act 2024: Key Changes to New Zealand's Rental Laws

The Residential Tenancies Amendment Act 2024 (the Act) introduces a series of significant changes to New Zealand's rental laws, aimed at improving tenant security, modernizing tenancy processes, and fostering a fairer balance between the rights of landlords and tenants.

Here’s a brief look at the major changes under the new law:

1. Bond Lodgement and Online Payments

One of the key changes in the Act is the requirement for all tenancy bonds to be lodged and paid online. Previously, tenants and landlords were required to physically submit bond payments and sign documents. Now modernized, this process is streamlined and simplified, with all bond payments handled electronically. This not only improves efficiency but also enhances transparency and ease of access for both landlords and tenants.

Additionally, this online system ensures that bond processing is quicker, reducing any delays or errors that may have occurred with the old paper-based system.

2. Termination of Tenancies

The amendments make significant adjustments to how and when tenancies can be terminated.

Periodic Tenancies: Previously, landlords could only end a periodic tenancy if they had a specific termination ground, for example, demolishing the property or carrying out extensive renovations. This has changed significantly with the new amendments. Now, landlords must provide at least 90 days' notice to terminate a periodic tenancy without a specified cause. However, if the landlord has specific intentions—such as the intention to sell the property or move into it themselves—the notice period is shortened to 42 days.

For example:

• If the landlord intends to sell the property and needs the tenant to vacate for the sale process, they are required to provide a 42-day notice.
• The same applies if the landlord (or a close family member) plans to move into the rental property.

Automatic Transition of Fixed-Term Tenancies: The Act also ensures that fixed-term tenancies, which previously ended on a set date, will automatically roll over into periodic tenancies unless a landlord or tenant gives notice to end a fixed-term tenancy between 90 and 21 days before the fixed term ends, no specific reason is required. Or, the parties agree otherwise, for example, to renew the fixed term or to end the tenancy.

These changes offer tenants more predictable and stable living conditions, while also clarifying the process for both landlords and tenants.

3. Family Violence Provisions:

The Act also clarifies that a tenant’s children or dependants may withdraw from a tenancy due to family violence.

If a tenant or their child/dependant experiences family violence during a tenancy, they now have the ability to withdraw from the tenancy by giving at least 2 days’ notice (with qualifying evidence of family violence) without any financial penalty, or agreement required from the landlord.

4. Pet Provisions

One of the most anticipated changes under the Act is the way tenants can now request to have pets in rental properties. Previously, landlords had the right to refuse tenants' requests to keep pets without having to provide a reason. The Act shifts this, allowing tenants to request pets with the understanding that landlords can refuse—but only for legislated reasons.

These reasons are non-exhaustive, but could include:

• Concerns about damage to the property
• Allergies or other health concerns of the landlord or other tenants
• Incompatibility with other tenants' pets or lifestyles

Landlords will also be able to require a ‘pet bond’ up to a maximum value of two weeks’ rent (in addition to the regular rental bond).

5. Other Technical Changes

Smoking Restrictions

The Act now clarifies that landlords can include smoking bans in their tenancy agreements. Smoking-related damage to properties, particularly from smoke residue or fire risks, has long been a concern for landlords. By giving landlords the option to impose smoking restrictions, the Act ensures that tenants maintain the property in good condition, while also fostering healthier living environments.

Communication via Email

Acknowledging the importance of digital communication in today’s world, the amendment allows email to be used as a valid form of communication between landlords, tenants, and Tenancy Services. This modernization reflects the growing reliance on technology and aims to make the process of sending and receiving important notices, agreements, and documents more efficient, accessible, and reduces reliance on slower, paper-based communication.

Simplified Tenancy Tribunal Dispute Resolution

Another important change involves the Tenancy Tribunal, the body responsible for resolving rental disputes. The Act allows for disputes to be resolved without formal hearings in some cases, potentially reducing the need for long waits and time-consuming legal processes. Instead, the Tribunal can resolve certain issues based on documentation or virtual hearings, making dispute resolution more efficient for both landlords and tenants.

Conclusion

The Residential Tenancies Amendment Act 2024 represents a major shift towards more equitable, transparent, and efficient rental laws in New Zealand. This new legislation creates a fairer balance between the rights and responsibilities of landlords and tenants. These changes modernize the rental experience, ensuring that both parties have clear guidelines and protections in place.

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