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What Changes to the Residential Tenancies Act will mean for Landlords

The 2025 updates to the Residential Tenancies Act (RTA) are set to […]

January 21, 2025 3 min read

The 2025 updates to the Residential Tenancies Act (RTA) are set to reshape tenancy rules, presenting both challenges and opportunities for landlords. These changes, effective from the 30th of January 2025, include new notice periods, modernised communication methods, and updated rules for bond lodgement, smoking bans, and pet policies. Whether you manage one property or an entire investment portfolio, understanding these changes will ensure compliance and help you adapt to the evolving rental market.

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What are the Key Changes to the Residential Tenancies Act?

And when will these changes come into effect?
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Changes to Tenancy Terminations​

Taking effect on 30 January 2025, the new rules introduce key adjustments to how tenancies can be terminated: 

Periodic Tenancies:

Landlords can end a periodic tenancy without providing a reason by giving 90 days’ notice. For specific grounds, such as selling the property with vacant possession, 42 days’ notice is required. Tenants can now end periodic tenancies with just 21 days’ notice.

Fixed-Term Tenancies:

These will automatically convert to periodic tenancies unless either party gives notice to terminate between 90 to 21 days before the end of the fixed term. 
 

Upcoming Pet Rules and Pet Bonds​

The provisions for pet bonds and updated pet consent rules will take effect on a date to be determined by Order in Council.
 
The key points include:
  • Landlords must respond to tenant requests for pet approval within 21 days. 
  • A pet bond, capped at two weeks’ rent, can be charged in addition to the standard bond. 
  • Reasonable grounds for refusal include property unsuitability, noncompliance with bylaw, or past issues with the tenant’s pet-related responsibilities.
Learn more about pets in rentals here.

Online Bond Lodgement

From 17 December 2024, bond lodgements must be completed online.
 
This update eliminates the need for paper-based forms and signatures, making the process faster and more efficient for all involved.  Refunds and other transactions will still require verification, ensuring accuracy and security.
 
This change streamlines bond management and aligns with modern property management practices. 

Technical Changes to the Residential Tenancies Act

On 20 March 2025, several technical updates to the Residential Tenancies Act will be implemented, including:

Electronic Communication: Notices and documents can now be served via email or other electronic means, provided this is agreed upon in the tenancy agreement. This simplifies communication and reduces delays. 
 
Smoking Restrictions: Landlords can enforce bans on smoking indoors and in outbuildings. Additional outdoor smoking restrictions must align with tenants’ rights to quiet enjoyment of the property. 

Why do these Changes Matter for Landlords and Tenants?

The 2025 Residential Tenancies Act changes present both opportunities and challenges for landlords and tenants in New Zealand.
 
For Landlords, these updates provide a change to modernise tenancy management practices, ensuring smoother operations and compliance with the law. The new rules mean that Landlords can better protect their investments, streamline communication, and create more professional relationships with tenants. Features like online bond lodgement and electronic communication reduce administrative burdens and improve efficiency.
 

For tenants, the changes aim to enhance tenant rights and provide greater flexibility. For example, shorter notice periods for terminating periodic tenancies empower tenants to adjust their living situations more quickly. New pet policies and protections against retaliatory terminations support tenants in maintaining stable and secure housing arrangements. 

The Road to Healthier Tenant-Landlord Relationships.

Clearer guidelines and fairer practices promote healthier landlord-tenant relationships and ultimately contribute to a more balanced and transparent rental market. Navigating these changes can be complex, but you don’t have to do it alone. Our team stay up to date with regulations and is here to help you adapt, comply, and maximise your rental returns. 

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