Changes to encourage more rental homes passed into law

The Residential Tenancies Amendment Bill has passed its third reading, delivering on the coalition Government’s commitment to deliver sensible changes to tenancy laws, Housing Minister Chris Bishop says.

“The previous Government’s war on landlords ultimately caused worse outcomes for tenants: rents up by $170 per week from 2017 to 2023, the social housing waitlist increasing by about 20,000 families, and thousands of families living in emergency housing motels,” Mr Bishop says.

“The suite of sensible pro-tenant and pro-landlord changes in the Bill passed into law by Parliament today will give landlords confidence to re-enter the market and tenants more ability to secure a rental home – including for their beloved household pet.

“These changes are part of our Government’s plan to fix our housing crisis. 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.”

The key changes in the Bill include:

• Reintroducing 90-day notice ‘no cause’ terminations for periodic tenancies, meaning landlords can end a periodic tenancy without requiring a specific reason.
• Reducing landlords’ notice periods for ending a periodic tenancy to 42 days in specific circumstances. 
• Reducing tenants’ notice periods for ending a periodic tenancy from 28 to 21 days. 
• Reintroducing landlords’ ability to give notice to end a fixed-term tenancy at the end of its term without requiring a specific reason. 
• Allowing landlords to require a pet bond alongside the introduction of new pet consent and damage liability rules. 

“The Bill has brought back the ability for landlords to end a periodic tenancy without giving a specific reason, provided they give their tenants at least 90 days’ notice,” Mr Bishop says.

“Reintroducing this ‘no cause’ backstop will give landlords more confidence to offer homes to tenants who may otherwise have been considered too risky.

“The Bill also 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 will give landlords more certainty that fixed-term tenancies can end on their expiry date, and will encourage landlords in markets like Queenstown to offer their properties for rent, secure in the knowledge that they can use the property themselves for part of the year if desired.

“We also hear from many renters that it’s far too hard to find pet-friendly rental properties. Pets are important members of many Kiwi families, so to encourage more landlords to allow pets in their rental homes they will be able to require a pet bond. Tenants with written permission can have a pet in their rental property, and landlords may only refuse to grant this permission on reasonable grounds.

“Landlords will have more certainty and protection from the risks of having pets in a rental, with tenants fully liable for careless and accidental pet-related damage that is beyond fair wear and tear.

“I’m proud of the changes we’ve delivered that will give more New Zealanders, and their pets, a place they can call home.”

Changes will be introduced starting in early 2025. The new rules for ending tenancies can be used from 30 January, while pet-related changes including the option to charge pet bonds, are likely to be introduced in late 2025.

Guidance on what the changes mean for landlords and tenants will be available from the Ministry of Business, Innovation and Employment’s Tenancy Services website.

Note to editors:

Changes	Date changes take effect
Tenancy termination changes, including:  reintroducing ‘no cause’ terminations, meaning a landlord can end a periodic tenancy with 90 days’ notice without requiring a specific reason reducing landlords’ notice periods for ending a periodic tenancy to 42 days in specific circumstances reducing tenants’ notice periods for ending a periodic tenancy from 28 to 21 days reintroducing landlords’ ability to give notice to end a fixed-term tenancy at the end of its term without requiring a specific reason.	30 January 2025
Changes to improve clarity and efficiency, including: clarifying that landlords can prohibit smoking inside the main rental premises clarifying provisions for withdrawing from a tenancy due to family violence.	20 March 2025
Pet-related changes, including: the ability to charge a pet bond at a maximum equivalent of two weeks’ rent new pet consent and damage liability rules.	TBC – expected late 2025 (commencement is by Order in Council, enabling a date to be set later)