The Residential Tenancies Amendment Act

The Residential Tenancies Amendment Act (“RTA”) became law on 11 August 2020. This is a brief run-through of the new laws that will come into force from 11 February 2021.

Phase 1 (in force from 11 August 2020)
Transitional and emergency housing – the RTA does not apply to transitional and emergency that is funded wholly or partly by a government department.
Rent increases – Instead of every six months, rent increases are limited to once every 12 months.

Phrase 2 (from 11 February 2021)
Rent setting – It is a requirement to state the rent when advertising tenancies. This is to stop rental auction situations. Tenants are still allowed to offer to pay more for a property if they wish.
Periodic tenancy – Landlords will not be able to end a periodic tenancy without cause by only providing 90 days’ notice. Periodic tenancies can be ended by the landlord for one of the following reasons:

  • The landlord issued a tenant three notices for separate anti-social acts in a 90 day period.
  • The landlord gave notice that a tenant was at least five working days late with their rent payment on three separate occasions within a 90 day period.
  • The landlord will suffer greater hardship than the tenant if the tenancy continues.
  •  Fixed tenancies – At the end of fixed-term tenancy, it will automatically convert to a periodic tenancy unless:
    • A landlord gives notice using the reasons listed in the RTA for periodic tenancies.
    • A tenant gives notice for any reason at least 28 days before the end of the tenancy.
    • The parties agree otherwise i.e. to renew the fixed term or to end the tenancy.

Minor changes – If the tenant requests a minor change to the property (the RTA defines “minor change”), the landlord must give permission. The landlord can set reasonable conditions around how the change is carried out. The tenant must remove the minor change and remediate the property when the tenancy ends.

Assignment  – All requests by the tenant to assign a tenancy must be considered and landlords cannot unreasonably decline. A residential tenancy agreement cannot prohibit an assignment.

Landlord records – It is unlawful for landlords to not provide a written tenancy agreement. Landlords must provide tenants with a breakdown of fees charged on agreement to assignment, subletting or ending a tenancy. This provides tenants an opportunity to consider if the fees are reasonable. Landlords have an obligation to provide the records relating to healthy homes standards.Finally,  Healthy Homes Standards – current level of compliance statement must be included in most periodic tenancy agreements.

Enforcement – The Tenancy Tribunal can hear cases and make awards up to $100,000. If things get really bad, the Ministry of Business, Innovation and Employment has new measures to take action against parties not meeting their obligations.

The RTA aims to provide tenants with more rights to their living arrangement and give more clarity to landlords on their obligations. If you are unsure about your tenancy, we are here to help you through the process.

Schnauer & Co, 1 Shea Terrace, Takapuna
09 486 0177 www.schnauer.com


Issue 116 February 2021