The residential tenancies act 1986
Property • 14 March 2024

The residential tenancies act 1986

The Residential Tenancies Act is a legal framework that guides the relationship between landlords and tenants in New Zealand. It aims to make renting a fair and smooth experience for both sides. Some of the key aspects of the Act are:


  • It ensures that rental properties are safe and healthy, and makes landlords follow the healthy homes’ standards – see more about this below.
  • It protects tenants from excessive rent hikes by allowing only one rent increase per year, and making landlords give at least 60 days’ notice before raising the rent.
  • It prevents landlords from charging unreasonable amounts of money as a bond or rent in advance, by capping the bond at four weeks’ rent and the advance rent at one week’s rent.
  • It clarifies the reasons and methods for ending a tenancy, and gives tenants more stability by lengthening the notice periods for some kinds of termination.
  • It creates the Tenancy Tribunal as an impartial authority that can settle conflicts between landlords and tenants, and uphold the act.
  • It imposes penalties and remedies for violations of the act, such as unlawful eviction, damage to property, or harassment.

 

HEALTHY HOME STANDARDS


The healthy homes standards became law on 1 July 2019 and introduced specific and minimum standards for heating, insulation, ventilation, moisture entry and drainage, draught stopping, and smoke alarms in rental properties.


Between 1 July 2021 and 1 July 2025, all private rentals must comply with the healthy homes’ standards within certain timeframes from the start of any new, or renewed, tenancy. Different timeframes depend on the type of rental home. The standards are intended to benefit both landlords and tenants by reducing health risks, maintenance costs, and disputes.


By making your rental property compliant with healthy homes standards, you will not only meet your legal obligations as a landlord, but also provide a warmer, drier and healthier home for your tenants.

 

CHANGES TO BE MADE TO THE RESIDENTIAL TENANCIES AMENDMENT ACT 2020


Some significant changes were introduced in The Residential Tenancies Amendment Act 2020. One of the changes meant landlords lost the ability to end a tenancy without giving a reason, provided they gave 90 days’ notice. The current Government plans to reinstate the prior law which means that landlords will, again, be able to give notice to their tenants to move out without providing a reason why.


The Government also intends to reduce tenants’ required notice period for the end of a periodic tenancy from 28 days to 21, and will reduce the amount of time that landlords have to give if they want to sell, do renovations, redevelop, or move in to a property from 90 days to 42.


Investors will regain their ability to deduct home loan interest costs from their rental income for tax purposes and the Bright-line test will return to two years. The previous Government pushed out the amount of time that investors had to hold on to an existing property to avoid being charged tax on any capital gains, to 10 years. The Government has said it will return this to the original two years.


There may also be a change to allow landlords to ask for extra rent to cover potential damage to a rental property from an animal. At the moment, landlords cannot charge more than four weeks’ rent as a bond.

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25 June 2025
New Zealand’s Healthy Homes standards have been rolling out since 1 July 2019 , culminating in a final compliance deadline of 1 July 2025 for all private residential rentals. These standards cover essential areas like heating, insulation, ventilation, moisture, drainage, and draught stopping, ensuring homes are safe, warm, and healthy. Key compliance time frames Tenancies that began or were renewed between 1 July 2021 – 27 August 2022 : Must meet standards within 90 days of tenancy start or renewal. Tenancies that began or were renewed between 28 August 2022 – 2 March 2025 : Now have up to 120 days to comply — extended due to legislative updates . Tenancies started on or after 3 March 2025 : Must comply with the 1 July 2025 deadline. All existing periodic tenancies , regardless of start date: Are also required to meet standards by 1 July 2025  New compliance statements are mandatory From 1 December 2020, it's illegal to ignore the requirement for a signed compliance statement in new or renewed tenancy agreements. This must detail the property’s current level of compliance. Failing to include this in the tenancy agreement can attract penalties of up to $500 per tenancy. Penalties & tenant rights Landlords who do not comply risk: Fines up to $7,200 per breach under the Residential Tenancies Act. Tenants can issue a 14-day notice to remedy issues. If ignored, they may apply to the Tenancy Tribunal. We see that high volumes of disputes are emerging, especially in student accommodation. Why does this matter? For tenants : You're entitled to a rental that’s warm and dry from 1 July 2025 onward — and you’ve got legal mechanisms to enforce this. For landlords : Compliance isn’t optional — it’s law. Even a single standards omission can result in Tribunal orders, rent rebates, and reputational damage. What you should do now Landlords : Book a Healthy Homes Assessment to identify what’s needed. A Healthy Homes Assessment is a property check carried out by a qualified assessor to see whether your rental meets New Zealand’s legal standards for heating, insulation, ventilation, and more. Assessments aren’t mandatory, but they’re a smart way to avoid guesswork and ensure you’re on track. Providers vary by region and service, so it’s worth doing a bit of research to find one that suits your needs. Ensure all relevant tenancy agreements include the compliance statement , and maintain evidence (eg invoices, inspection certificates). Plan and complete works before 1 July 2025 , the final deadline. Tenants : Review your tenancy agreement or ask for the compliance statement if you haven’t seen it. If your property doesn’t meet the standards, talk to your landlord. If unresolved within 14 days, consider a formal notice to remedy and prepare to go to the Tenancy Tribunal. While many landlords may have allowed compliance to drift, the law is clear: from 1 July 2025 , all rental properties must meet Healthy Homes standards , without exceptions. By getting informed and proactive now, everyone — landlords, tenants, property managers — can avoid penalties, legal disputes, and, most importantly, poor living conditions.
31 May 2025
Know Your Rights and Obligations at Renewal Time
7 May 2025
Electronic signatures have made signing documents easier, faster, and more efficient. They replace the need for pen-and-paper signatures and allow people to complete transactions digitally. Since the Contract and Commercial Law Act 2017 came into effect on 1 September 2017, electronic signatures have become widely used for legal documents and transactions. What Are Electronic Signatures? An electronic signature is any digital way of signing a document. This could be typing your name, clicking “I agree,” or using special software to create a secure digital signature. Electronic signatures are recognised as legal and binding as long as they meet three key requirements: They clearly show the person intended to sign the document; They are reliable and appropriate for the document's purpose: and Both parties agree to use electronic signatures. Using Electronic Signatures in Property Transactions Electronic signatures are increasingly being used in property transactions. Lawyers and conveyancers use them to complete important steps like signing sale and purchase agreements or submitting documents to register the transfer of property titles. In October 2024, the Authority and Identity Requirements for E-dealing Guidelines 2024 were updated, allowing Authority and Instruction (A&I) forms to be more readily signed and witnessed electronically. Electronic signatures on A&I forms must meet strict reliability standards under the Contract and Commercial Law Act 2017. This includes ensuring the signature is linked to the signer, under their sole control, and that any alterations to the signature or document are detectable. Practitioners must also retain digital signing logs as evidence for compliance. Benefits of Electronic Signatures Fast and Convenient : You can sign documents anytime, anywhere - no need for printing or mailing papers. Cost-Effective : They save time and money by reducing the need for physical paperwork. Secure : Advanced software ensures the signatures cannot be easily altered or faked. Environmentally Friendly : They reduce the use of paper, making them a more sustainable option. Challenges and Considerations While electronic signatures are very useful, there are some things to think about: Trust and Reliability : It's important that the signature method is secure and reliable, especially for high-value transactions. Technology Needs : Both parties need access to the right tools to sign electronically. Exclusions : Some documents, like wills and powers of attorney, cannot be signed electronically under New Zealand law. Making the Most of Electronic Signatures To use electronic signatures effectively: Choose reliable software or platforms that comply with the Authority and Identity Requirements for E-Dealing Standard 2024. Make sure all parties agree to use them beforehand. Verify the identity of signers when needed, especially for important documents. Retain evidence, such as digital signing logs, to meet legal obligations. Electronic signatures are a legal and practical way to sign documents. They are particularly helpful for property transactions and have made processes smoother for everyone involved. With the clear guidance provided in the Authority and Identity Requirements for E-Dealing Guidelines 2024, electronic signatures are now even more accessible and secure for legal professionals. By understanding their benefits and being aware of their limitations, businesses and individuals can confidently use electronic signatures in their day-to-day dealings. Please contact us if you need to know more about electronic signatures – we’re always here to help!
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