Key Changes to the Residential Tenancies Act 2025

The upcoming Residential Tenancies Amendment Act is effective from 30 January 2025. It introduces significant updates to NZ's tenancy laws. Here’s what landlords and tenants need to know about the changes and how they impact property management.
1. Changes to Tenancy Terminations
Current Law:

1. Landlords can end a periodic tenancy for specific reasons, such as selling the property or needing it for their own use (with 63-90 days' notice depending on the situation).
2. Tenants can end periodic tenancies with 28 days' notice.
3. Fixed-term tenancies convert to periodic automatically unless either party provides notice or agrees to renew.

New Law:

1. 'No Cause' Terminations Return: Landlords can end a periodic tenancy without a specific reason with 90 days' notice.
2. Reduced Notice Periods:
3. 42 days' notice if the property is sold with vacant possession, required for the owner's or their family member’s residence, or needed for an employee.
4. 21 days' notice for tenants to end periodic tenancies.
5. Fixed-Term Tenancies: Convert to periodic unless either party gives notice 90-21 days before the term ends. No specific reason is required to end the tenancy.
6. A 90-day transition period applies to existing fixed-term tenancies expiring on or after 1 May 2025.

2. Retaliatory Termination Protection

1. Tenants can apply to the Tenancy Tribunal for retaliatory termination claims up to 12 months after receiving a termination notice.
2. If the tenant applies within 28 days, they may request the notice be cancelled.

**3. Minor and Technical Amendments **

1. Effective 20 March 2025
2. No Smoking Indoors: Landlords can enforce indoor smoking bans (excluding vaping).
3. Tribunal Streamlining: The Tenancy Tribunal can decide some cases based on submitted documents without a hearing.
4. Family Violence Protections: Tenants can exit a tenancy on short notice if a dependent has experienced family violence.
5. Electronic Notices: Texts and instant messages are now acceptable for serving notices.
6. Extended Rent Reductions: Tribunal-ordered rent reductions can last up to 12 months.

4. Pet Policy Changes

1. Effective late 2025
2. Pet Consent: Tenants must obtain written approval for pets, and landlords can only refuse on reasonable grounds.
3. Pet Bonds: Up to two weeks' rent can be charged as a pet bond.
4. Tenant Liability: Tenants are fully responsible for pet-related damage.
5. Disability Assist Dogs: Excluded from consent and bond requirements.

**5. Online Bond Lodgments **

1. Effective 17 December 2024
2. All bond lodgments and payments must be completed online, streamlining the process and removing the need for signatures.

What Remains Unchanged

1. Landlords can still apply to end tenancies for repeated anti-social behaviour or rent arrears.
2. The 14-day notice period remains for cases involving tenant assault.
3. Family violence protections for tenants and their dependents continue to apply.

Stay Informed and Prepared with SM Property
Understanding these changes is crucial for both landlords and tenants to avoid disputes and remain compliant with the law. At SM Property, we are committed to keeping our clients informed and compliant. Contact us today for expert property advice and support to navigate these legislative updates with confidence, whether you're a vendor or an investor.