Changes to the Residential Tenancies Act (RTA) 2025
What are the key amendments to the Residential Tenancies Act (RTA)?
Revisions to tenancy termination rules will come into force on 30 January 2025.
Online bond lodgement requirements will be introduced on 17 December 2024.
Provisions for pet bonds and updated pet consent regulations will commence on a date to be set by Order in Council.
Technical amendments to the RTA will take effect on 20 March 2025.
Why Does This Matter?
The 2025 changes to the Residential Tenancies Act (RTA) bring both opportunities and challenges for landlords and tenants in New Zealand.
For landlords, the amendments modernise property management, offering streamlined processes and enhanced compliance. Landlords can protect their investments more effectively while fostering professional relationships with tenants. Features like online bond lodgements and electronic communication reduce paperwork and administrative inefficiencies.
For tenants, the changes enhance their rights and provide greater flexibility. Shorter notice periods for ending periodic tenancies allow tenants to adapt to changing circumstances more easily. The introduction of pet-friendly policies and safeguards against retaliatory terminations promote stability and security in housing.
Changes to Tenancy Terminations
Effective from 30 January 2025, significant adjustments to tenancy termination rules will apply:
Periodic Tenancies:
Landlords may terminate a periodic tenancy without stating a reason, with 90 days’ notice.
If termination is for specific reasons, such as selling the property with vacant possession, only 42 days’ notice is required.
Tenants can now end periodic tenancies with just 21 days’ notice.
Fixed-Term Tenancies:
Fixed-term agreements will automatically transition to periodic tenancies unless either party provides notice to terminate between 90 and 21 days before the term’s end.
Online Bond Lodgement
From 17 December 2024, bond lodgements will need to be submitted online.
This shift eliminates the need for paper forms and physical signatures, ensuring faster, more efficient processing for all parties involved. Verification will still be required for refunds and related transactions, ensuring security and accuracy.
By adopting modern property management practices, this change simplifies bond administration.
Upcoming Pet Policies and Pet Bonds
The new provisions for pet bonds and updated pet consent rules will begin on a date yet to be determined by Order in Council.
Key details include:
Landlords must respond to tenant requests for pet approval within 21 days.
A pet bond, capped at two weeks’ rent, may be charged in addition to the standard bond.
Refusal to allow pets must be based on reasonable grounds, such as property unsuitability, existing bylaws, or prior issues related to the tenant’s pet.
Technical Updates to the Residential Tenancies Act
On 20 March 2025, several technical amendments to the RTA will come into effect, including:
Electronic Communication:
Notices and other documents may now be served electronically, such as via email, provided this is agreed upon in the tenancy agreement. This change streamlines communication and reduces delays.
Smoking Restrictions:
Landlords will have the authority to prohibit smoking inside the property and in outbuildings.
Additional outdoor smoking restrictions are allowed but must not infringe on tenants’ rights to peaceful enjoyment of the property.