Proposed changes to the Residential Tenancies Act 1986: Termination of tenancies

The Government is proposing a range of changes to the Residential Tenancies Act 1986 that include changing tenancy termination rules.

It’s important for landlords and tenants to note that these changes are not yet law, and do not yet affect tenancies.

Amendments to the Residential Tenancies Act 1986 include introducing pet bonds and other pet-related changes

 

Tenancy terminations: what’s happening and when

Law is currently (2024)  Proposed law changes 
Landlords can end a periodic tenancy if they have a specific termination ground, e.g. demolishing the property or carrying out extensive renovations. 

90-day ‘no cause’ terminations for periodic tenancies without requiring a specific ground for ending the tenancy. 

 

Notice periods are 63 days to end a periodic tenancy where: 

  • the owner, or their family member, requires the property to live in as their main residence.
  • the property is needed for an employee (and this is in the tenancy agreement). 

The notice period is 90 days to end a periodic tenancy where: 

  • the property has been sold with a requirement to give vacant possession. 
 Notice periods return to 42 days for these same specific landlord termination grounds. 
Tenants have to give 28 days’ notice (at least) to end a periodic tenancy.  Tenant’s notice period returns to 21 days for ending a periodic tenancy.

Fixed-term tenancies automatically convert to periodic tenancies unless: 

  • a landlord gives notice using the one of the specific termination grounds for periodic tenancies;
  • a tenant gives notice for any reason at least 28 days before the end of the tenancy; or 
  • the parties agree otherwise e.g. to renew the fixed term or to end the tenancy.

Fixed-term tenancies automatically convert to periodic tenancies unless: 

  • a landlord or tenant gives notice to end a fixed-term tenancy between 90 and 21 days before the fixed term ends. No specific reason is required; or
  • the parties agree otherwise e.g. to renew the fixed term or to end the tenancy.

Minor and technical changes to the Residential Tenancies Act 1986  

The Government is also proposing a range of additional minor amendments to further support landlords and improve the clarity and effectiveness of the law.  

Amendment  Why this amendment is proposed 
Clauses prohibiting smoking indoors  Clarifies that clauses in tenancy agreements that prohibit smoking indoors are enforceable. 
Enabling online bond lodgement  Will make it easier for landlords and tenants to have bond lodged in new bond system when implemented. 
Enabling Tenancy Tribunal to decide matters by reading the documents instead of having parties attend the hearing  Supports the Tenancy Tribunal to be efficient, reducing time and costs associated with attending Tenancy Tribunal hearings for stakeholders where appropriate. 
Clarifying withdrawals from tenancy following family violence  Removes barriers to leaving abusive situations by confirming that a tenant can leave if their child or dependent is subject to family violence. 
Clarifying service tenancies managed by Ministry of Education on Crown land  Technical amendment to clarify tenancies where the Crown owns the land, the Ministry of Education acts as landlord, and the employer is the school’s board. 
Confirming the jurisdictional limit for the Tenancy Tribunal is per tenancy for consolidated applications  Increases efficiency for MBIE, the Tenancy Tribunal and landlords when MBIE is making an application to Tenancy Tribunal in relation to multiple properties owned by one landlord – limit will be $100,000 per tenancy. 
Clarifying the retaliatory termination provision  Will make sure this provision protects tenants when the regulator takes action on their behalf. 
Modernising how notices and documents are given  Ensures that landlords and tenants can give documents and notices in modern ways e.g. texts or instant messaging.  

What doesn’t change   

The Government is keeping some amendments made in 2020, as they give more choice to landlords in how to manage their property:  

  • Landlords can apply to the Tenancy Tribunal to end a periodic tenancy where the landlord has given three notices of anti-social behaviour in 90 days or where the tenant has been in repeated rent arrears. 
  • Landlords can apply to the Tenancy Tribunal to end a periodic tenancy quicker than 90 days on hardship grounds .
  • Landlords can end a tenancy with 14 days’ notice where the tenant has assaulted the landlord, their family or an agent, and a criminal charge has been filed. 
  • The Government is also keeping the 2020 amendment to keep tenants safe, by making sure they can withdraw from a tenancy where they are a victim of family violence.  

Next steps 

Draft legislation is being developed by the Ministry of Housing and Urban Development for introduction to Parliament in May 2024. If the Bill passes, it could become an Act in late 2024.  

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