Understanding the Residential Tenancies Amendment Act 2024: Key Changes for Landlords and Tenants

The Residential Tenancies Amendment Act 2024, enacted on 17 December 2024, introduces significant reforms to New Zealand’s tenancy laws. These changes aim to modernise processes, clarify tenant and landlord rights, and enhance the overall rental experience. Understanding these amendments is crucial for both landlords and tenants to ensure compliance and maintain harmonious rental relationships.

Key Changes and Implementation Timeline:

1. Online Bond Lodgement
   • Effective from 17 December 2024:
     • Tenancy bonds must now be lodged online, removing the requirement for physical signatures. This initiative is part of the broader effort to streamline and modernise the tenancy bond service. Tenancy Services
2. Tenancy Terminations
   • Effective from 30 January 2025:
     • Periodic Tenancies:
       • Landlords can terminate periodic tenancies with 90 days’ notice without providing a specific reason, provided no other notice has been issued.
       • Tenants can end a periodic tenancy by giving at least 21 days’ notice at any time. New Zealand Legislation
     • Fixed-Term Tenancies:
       • Fixed-term tenancies will automatically convert to periodic tenancies unless either party provides notice between 90 to 21 days before the term ends. This provision does not apply to fixed-term tenancies expiring before 1 May 2025.
3. Technical Updates
   • Effective from 20 March 2025:
     • Smoking Bans:
       • Smoking bans specified in tenancy agreements are now enforceable, specifically targeting indoor areas of the rental property. For outdoor areas, landlords must ensure any restrictions align with tenants’ rights to quiet enjoyment.
     • Electronic Communication:
       • Tenancy Tribunal applications can now utilise electronic addresses for service, including email addresses, fax numbers, mobile numbers, or instant messaging accounts.
     • Tribunal Proceedings:
       • Adjudicators can decide certain cases based on submitted documents without holding a hearing, excluding matters involving tenancy termination or landlord entry rights.
4. Pet Consent and Pet Bond
   • Effective Date To Be Determined:
     • Pet Consent:
       • Tenants must seek written consent to keep pets. Landlords can only refuse on reasonable grounds, such as property suitability or existing bylaws.
     • Pet Bond:
       • Landlords are permitted to charge a pet bond of up to two weeks’ rent in addition to the general bond.
     • Disability Assist Dogs:
       • Exempt from these rules; they do not require consent or a pet bond.
     • These changes are anticipated to take effect in the second half of 2025 and will apply to tenancies commencing on or after the implementation date. Existing pets, agreed upon before the changes, will not be affected. The Beehive

Implications for Landlords and Tenants:

• Landlords should:
  • Familiarise themselves with the new online bond lodgement system to ensure timely compliance.
  • Review and, if necessary, update tenancy agreements to reflect enforceable smoking bans and pet policies.
  • Prepare for the adjusted notice periods and automatic conversion of fixed-term tenancies to periodic tenancies.
• Tenants should:
  • Understand their rights regarding tenancy terminations and the processes for seeking pet consent.
  • Be aware of the enforceability of smoking bans within rental properties.

Staying informed about these legislative changes is essential for maintaining compliance and fostering positive landlord-tenant relationships. For detailed information and guidance, refer to the official summary provided by Tenancy Services.