PHOTO: FILE
After the Residential Tenancies Amendment Bill passed its third reading in Parliament in December, significant changes to tenancy laws are taking place from this month. The Government aims to encourage more rental properties onto the market with these new regulations.
Housing Minister Chris Bishop highlighted the urgency of these changes, noting that from 2017 to 2023, rent had risen by $170 per week, the social housing waitlist had increased by about 20,000 families, and thousands of families were living in emergency housing motels. He emphasized that these changes are part of the Government’s comprehensive plan to address New Zealand’s housing crisis.
“The suite of sensible pro-tenant and pro-landlord changes in the Bill passed into law by Parliament will give landlords confidence to re-enter the market and tenants more ability to secure a rental home – including for their beloved household pet,” Bishop stated. “We are also unlocking land for housing inside and around our cities, building infrastructure, and driving down building costs and making it easier to build.”
Key Changes and What They Mean for You
- 90-Day Notice ‘No Cause’ Terminations Return The Bill reintroduces the ability for landlords to end a periodic tenancy without giving a specific reason, provided they give their tenants at least 90 days’ notice. Bishop believes this will give landlords more confidence to offer homes to tenants who may otherwise have been considered too risky.
- Reduced Notice Periods for Landlords Landlords can now end a periodic tenancy with 42 days’ notice if:
- The owner requires the premises for their principal place of residence or for one of their family members within 90 days of the tenancy ending and will remain living in the home for at least 90 days.
- There is an unconditional agreement for the sale of the premises that requires vacant possession.
- The property is required for occupation by employees or contractors of the landlord or by contractors. The property must usually be used or obtained for this purpose and this must be stated in the current tenancy agreement.
- Reduced Notice Periods for Tenants Tenants’ notice periods are reduced from 28 to 21 days. Both this and the landlord’s notice period come into effect on January 30, 2025, and cannot be actioned before that date.
- End of Fixed-Term Tenancies The Bill reintroduces landlords’ ability to give notice to end a fixed-term tenancy at the end of its term without requiring a specific reason. This change aims to give landlords more certainty and encourage them to offer their properties for rent, especially in markets like Queenstown.
- Renting with Pets Made Easier Bishop acknowledges the importance of pets to many Kiwi families and aims to make it easier for renters to find pet-friendly properties. Landlords can now require a pet bond, and tenants with written permission can have a pet in their rental property. Landlords may only refuse this permission on reasonable grounds. Tenants will be fully liable for any pet-related damage beyond fair wear and tear.
Bishop expressed pride in the changes, stating they will allow more New Zealanders and their pets a place to call home. The new rules for ending tenancies can be used from January 30, while pet-related changes, including the option to charge pet bonds, are likely to be introduced in late 2025.
Opposition and Concerns
While Bishop is optimistic about the changes, Zac Thomas, president of Renters United, disagrees. He argues that the changes are detrimental to renters, landlords, and communities. Thomas highlights that the reintroduction of no-cause evictions, opposed by 93% of renters during public submissions, will lead to more housing insecurity. He believes it will make it harder for people to save money to buy a house, increase the number of children forced to move schools, and lead to more homelessness.
In response to Thomas’ comments, Minister Bishop stated, “The Government respectfully disagrees with Renters United. The changes will encourage landlords back into the rental market, putting downward pressure on rents, and will encourage landlords to take a chance on a range of tenants who traditionally find it hard to find rentals. The Government has a comprehensive programme of work to fix our housing crisis and we look forward to further progress next year.”
SOURCE: 1NEWS