After the Residential Tenancies Amendment Bill passed its third reading in Parliament in December, changes to tenancy laws are set to take place from January 2025.
The Government says the bill aims to encourage more rental properties onto the market.
In a statement at the time of the bill passing, Housing Minister Chris Bishop said from 2017 to 2023 rent had risen by $170 per week, the social housing waitlist had increased by about 20,000 families, and thousands of families were living in emergency housing motels.
He said the changes are part of the Government’s plan to fix New Zealand’s housing crisis.
“The suite of sensible pro-tenant and pro-landlord changes in the Bill passed into law by Parliament will give landlords confidence to re-enter the market and tenants more ability to secure a rental home – including for their beloved household pet.
“We are also unlocking land for housing inside and around our cities, building infrastructure, and driving down building costs and making it easier to build.”
Re: News looked at the changes. Here’s what it could mean for you:
90-day notice ‘no cause’ terminations return
“The Bill has brought back the ability for landlords to end a periodic tenancy without giving a specific reason, provided they give their tenants at least 90 days’ notice,” Bishop says.
“Reintroducing this ‘no cause’ backstop will give landlords more confidence to offer homes to tenants who may otherwise have been considered too risky.”
Landlords’ notice periods are reduced in specific circumstances
Landlords can end a periodic tenancy with 42 days’ notice if:
- the owner requires the premises for their principal place of residence or for one of their family members within 90 days of the tenancy ending and will remain living in the home for at least 90 days
- there is an unconditional agreement for the sale of the premises that requires vacant possession
- the property is required for occupation by employees or contractors of the landlord or by contractors. The property must usually be used or obtained for this purpose and this must be stated in the current tenancy agreement.
Tenants’ notice periods reduces from 28 to 21 days
Both this and the landlord's notice period come into effect on January 30, 2025, and cannot be actioned before that date.
Landlords’ ability to give notice to end a fixed-term tenancy returns
“The Bill also reintroduces landlords’ ability to give notice to end a fixed-term tenancy at the end of its term without requiring a specific reason,” Bishop says.
“This change will give landlords more certainty that fixed-term tenancies can end on their expiry date, and will encourage landlords in markets like Queenstown to offer their properties for rent, secure in the knowledge that they can use the property themselves for part of the year if desired.”
Renting with pets made easier
Bishop says many renters find it hard to find pet-friendly rental properties and they wanted to address that.
“Pets are important members of many Kiwi families, so to encourage more landlords to allow pets in their rental homes they will be able to require a pet bond. Tenants with written permission can have a pet in their rental property, and landlords may only refuse to grant this permission on reasonable grounds.
“Landlords will have more certainty and protection from the risks of having pets in a rental, with tenants fully liable for careless and accidental pet-related damage that is beyond fair wear and tear.
Bishop says he is proud of the changes made to allow more New Zealanders and their pets a place to call home.
Changes will be introduced starting in early 2025.
The new rules for ending tenancies can be used from January 30, while pet-related changes including the option to charge pet bonds, are likely to be introduced in late 2025.
While Bishop says the changes will help the housing crisis, Zac Thomas, president of Renters United, disagrees.
“The changes are bad for renters, bad for landlords, and bad for communities.
“They bring back no-cause evictions, which were opposed by 93% of renters during public submissions and will lead to more housing insecurity.
“It allows landlords to evict a renter in 90 days without having to give a reason. It will make it harder for people to save money to buy a house, increase the number of children forced to move schools, and lead to more homelessness.”
When asked about Thomas’ comment, Minister Bishop said “the Government respectfully disagrees with Renters United.”
“The changes will encourage landlords back into the rental market, putting downward pressure on rents, and will encourage landlords to take a chance on a range of tenants who traditionally find it hard to find rentals.
“The Government has a comprehensive programme of work to fix our housing crisis and we look forward to further progress next year.”
More stories:
How often do you talk to your siblings?
“I can talk to her about other things that you can’t talk to mates about.”
Research finds most NZers struggle to talk about their sexual health
“Taking care of not just our own sexual health but supporting others too is so important.”
Young vapers feel embarrassed and judged, but can’t beat addiction alone
“I wish I didn’t start because I can’t stop.”