Big Changes to the Residential Tenancies Act: Here's What You Need to Know

The Residential Tenancies Amendment Act 2024 (RTAA 2024) introduces significant changes to the Residential Tenancies Act 1986 (RTA). These updates, which became law on 17 December 2024, will impact landlords, tenants, and real estate professionals alike. Below is a breakdown of the key changes and what they mean for you.

1. Tenancy Termination Rules

Effective: 30 January 2025

New rules for ending tenancies aim to balance the rights of landlords and tenants. Key changes include:

• Periodic Tenancies:

  • Landlords can terminate by giving at least 90 days’ notice without providing a reason.

  • Certain grounds allow termination with 42 days’ notice, such as under an unconditional sale and purchase agreement requiring vacant possession.

• Tenant Notices:

  • The minimum notice period for tenants to end a periodic tenancy has been reduced to 21 days.

• Fixed-Term Tenancies:

  • Either party can give notice to end a fixed-term tenancy between 90 and 21 days before the term ends, without providing a reason.

  • Tenants must now give at least 21 days’ notice to renew or extend a fixed-term tenancy.

Important Notes:

• Termination notices issued before 30 January 2025 remain valid under previous rules.

• For fixed-term tenancies that started on or after 11 February 2021 and end on or before 30 April 2025, the old rules still apply. The new rules apply to fixed-term tenancies expiring on or after 1 May 2025.

2. Pet Provisions

Effective: Date to Be Announced

Changes regarding pets in rental properties provide clarity and flexibility:

• Tenants can only keep pets if their tenancy agreement allows it or with written consent from the landlord.

• Landlords may charge a pet bond of up to two weeks’ rent (in addition to the general bond of up to four weeks’ rent). This provision is not yet in effect and cannot be enforced until an official date is set.

• Tenants will be fully responsible for pet-related damage beyond fair wear and tear.

  
  

3. Retaliatory Termination Notices

Effective: 30 January 2025

Protections against retaliatory notices have been expanded:

• If a landlord ends a tenancy due to a tenant exercising their rights, the tenant can apply to the Tenancy Tribunal to have the termination declared retaliatory and unlawful.

• These protections now extend to any termination in response to an individual or organisation exercising legal powers against the landlord (e.g., involvement by the Tenancy Services Compliance and Investigations Team).

4. Smoking Provisions

Effective: 20 March 2025

• Landlords now have more control over smoking rules:

• Landlords can prohibit tenants from smoking indoors.

• Smoking bans in other areas (e.g., outdoor spaces or outbuildings) must comply with the rights and responsibilities outlined in the RTA.

Where to Find More Information

For further guidance and resources, visit the Ministry of Business, Innovation and Employment’s Tenancy Services website.

Stay Informed and Compliant

If you are a private landlord, understanding these updates is essential to staying compliant with the law. With changes taking effect in stages throughout 2025, now is the time to prepare for the transition.

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