Are you a landlord? There are some changes to the Residential Tenancy Act (1986), designed to make the rental process clearer and fairer for everyone involved. Here’s what’s changing.
Tenancy terminations
Periodic tenancies
Tenants can end their periodic tenancy with 21 days’ notice.
From 30 January 2025, landlords can terminate a periodic tenancy with ‘no cause’ by giving 90 days' notice.
Landlords can end a periodic tenancy with 42 days’ notice under certain circumstances:
If the owner requires the premises for their primary residence or for one of their family members within 90 days. They must live in the home for at least 90 days.
If there is an unconditional property sale agreement where the home must be vacant on settlement.
If you need to house employees or contractors as the landlord (e.g. farm accommodation). The property must usually be used or obtained for this purpose and this must be stated in the current tenancy agreement.
Fixed term tenancies
Under the changes it is easier to have fixed term tenancies end on their expiry date. Action must still be taken if you want the tenancy to end.
Fixed-term tenancies automatically become periodic tenancies unless either party gives notice to end a fixed-term tenancy between 90 and 21 days before the fixed term ends or both parties agree on an alternative.
Clarifying the retaliatory termination provision
If a landlord terminates the tenancy due to a tenant exercising their rights, the tenant can apply to the Tenancy Tribunal to have the termination confirmed as retaliatory and declared an unlawful act. For example, if a tenant requests repairs and the landlord issues a termination notice instead of carrying out the work the tenant can apply to the Tribunal within 28 days of the notice being issued to request that the termination notice be cancelled.
Withdrawing from a tenancy due to family violence
Changes to withdrawing from a tenancy due to family violence now mean that a tenant’s children or dependants are also covered by this provision. If a tenant or their child/dependant experiences family violence during a tenancy, they can withdraw from the tenancy by giving at least 2 days’ notice (with qualifying evidence of family violence) without financial penalty or the need for agreement from the landlord.
Smoking
From 20 March 2025, tenancy agreement clauses that ban tobacco smoking except for in outbuildings, are enforceable in the Tenancy Tribunal. Landlords must keep in mind that if banning smoking anywhere else on the property including outbuildings, they need to ensure they are consistent with parties' other rights and responsibilities under the Residential Tenancies Act. E.g. the tenants right to quiet enjoyment.
Tenancy Tribunal Decisions
If deemed appropriate, the Tenancy Tribunal adjudicator can decide to conduct proceedings based on the application and supporting documents without the need for parties to attend the hearing but will take into account the parties’ views. If the matter involves the termination of a tenancy, or a landlord’s right of entry to the premises or a boarding room, a hearing must be held.Tenancy Tribunal Decisions
Jurisdictional limit for the Tenancy Tribunal
If the Tenancy Services Compliance and Investigations team makes an application to the Tenancy Tribunal against a landlord for more than 1 tenancy, the $100,000 threshold applies to each one of the tenancies, not for 1 application.
Pets
These rules will take effect on a date still to be set by Order in Council. They cannot be used until that date. Charging a pet bond is currently prohibited.
Once the provisions come into effect:
Tenants will only be able to keep a pet in their rental property if their tenancy agreement allows it or with written consent from their landlord.
Landlords will only be able to refuse a tenant's request to keep a pet in the property on reasonable grounds.
Tenants will be fully responsible for pet-related damage that is more than fair wear and tear.
Pet bonds may be required by landlords of no more than 2 weeks’ worth of rent (in addition to the general bond).
If a landlord consents to allowing pets, then a reasonable condition may be to require a pet bond from the tenant.
Bond lodgements and payments are now online
Bonds are now only lodged and paid online, and manual and postal lodgements are no longer available. When lodging or topping up a bond, signatures are no longer required and a PDF lodgement form no longer needs to be completed and uploaded.
Electronic notices
From 20 March 2025, landlords and tenants can give notice and documents electronically via email, fax, txt to mobile or instant messenger if the information can be easily accessed and referred to. The electronic address (e.g. mobile number) must have been provided as an address for service in the tenancy agreement and a physical address for service still needs to be provided.
Have questions or need help?
This guidance only applies to tenancies that start on or after the date these provisions take effect. If you have any questions or need advice on how these Residential Tenancy Act 1986 changes might affect your property management, Gallie Miles is here to help. Please don’t hesitate to get in touch with our team.
