The Residential Tenancies Act (RTA) in New Zealand is set to undergo important changes in 2025, impacting both landlords and tenants. These updates aim to strike a fair balance between tenant rights and landlord flexibility, while ensuring compliance with modern rental practices.
In this blog, we’ll break down the key changes, explain how they affect rental agreements, and highlight what landlords and tenants need to prepare for.
1. Changes to Tenancy Terminations
Effective Date: 30 January 2025
The rules around tenancy terminations have been revised to provide more flexibility for landlords while maintaining protection for tenants.
- 90-Day No-Cause Terminations Reinstated:
Landlords can end periodic tenancies without providing a specific reason by giving 90 days’ notice. This change restores options for landlords to manage their properties effectively. - 42-Day Notice for Specific Reasons:
Landlords can give 42 days’ notice under the following circumstances:- The landlord or their family intends to move into the property.
- The property is required for an employee as part of an employment agreement.
- The property has been sold, and the new owner requires vacant possession as per the sales agreement.
- Tenant Notice Period Reduced:
Tenants can now end a periodic tenancy with 21 days’ notice (previously 28 days), providing them with greater flexibility. - Fixed-Term Tenancies Adjustments:
Fixed-term tenancies will automatically convert to periodic tenancies unless either party gives written notice between 90 and 21 days before the term ends.
Impact on Landlords:
Landlords should update tenancy agreements and communication protocols to reflect the new notice periods.
2. Rules on Pets in Rental Properties
Effective Date: Expected in late 2025
- Pet-Friendly Policies Introduced:
Tenants will be allowed to keep pets with landlord consent, which cannot be unreasonably withheld. - Reasonable Refusals:
Landlords can deny pet requests based on legitimate reasons, such as:- Property suitability.
- Legal restrictions (e.g., body corporate rules).
- Pet Bond Allowed:
Landlords can charge a pet bond (up to 2 weeks’ rent) to cover potential damages caused by pets.
Impact on Landlords:
Clear policies for pet approvals and bond requirements should be included in tenancy agreements.
3. Digital Bond Lodgement and Payments
Effective Date: 17 December 2024
- Streamlined Bond Payments:
Bonds must be lodged and paid online, eliminating the need for physical signatures and paperwork. - Faster Processing:
Digital lodgements simplify bond handling, ensuring quicker processing for both landlords and tenants.
Impact on Landlords:
Landlords should familiarize themselves with the updated digital lodgement system to avoid delays.
4. Legal and Technical Amendments
Effective Date: 20 March 2025
- Electronic Notices Allowed:
Notices and documents can now be served electronically if an email address is provided in the tenancy agreement. However, a physical address is still required. - Clarity on Roles and Responsibilities:
Updates to the Act clarify obligations around property maintenance, inspections, and dispute resolutions.
Impact on Landlords:
Landlords should update their tenancy agreements to include electronic communication methods for improved efficiency.
How These Changes Affect Landlords and Tenants
For Landlords:
- Increased Flexibility: Reinstated 90-day terminations make it easier to manage property portfolios.
- Pet Policies: Clear guidelines on pet bonds and consent reduce uncertainties.
- Compliance Management: Landlords need to review agreements and processes to align with the law.
For Tenants:
- Improved Flexibility: Shorter 21-day notices offer greater freedom for moving.
- Pet Ownership Options: Tenants can now apply for pets with added protections.
- Stronger Protections: The changes maintain fairness while supporting tenants’ rights.
How NG Property Management Helps Landlords Stay Compliant
At NG Property Management, we make compliance simple for landlords by:
- Updating Tenancy Agreements: We ensure all documents are aligned with the latest legislation.
- Managing Terminations and Notices: Handling all communications professionally to meet legal requirements.
- Pet-Friendly Policies: Assisting landlords with fair pet policies and bond management.
- Digital Bond Lodgements: Streamlining bond handling to save time and reduce errors.
Let us help you navigate these changes with ease—contact NG Property Management today for expert guidance!
Key Takeaways
- Termination Flexibility: 90-day no-cause terminations are back, but new rules around notice periods apply.
- Pet Ownership Rules: Tenants have clearer rights to keep pets, with safeguards for landlords.
- Digital and Legal Updates: Bond lodgements and notices can now be handled electronically for faster processing.
- NG Property Management provides expert support to keep landlords compliant and stress-free.
Disclaimer: This blog provides general information and should not be considered legal or financial advice. Please consult a legal expert or tenancy advisor for specific concerns.
