The New Zealand Parliament has recently passed its third reading of the Residential Tenancies Amendment Bill, introducing significant changes aimed at balancing the interests of landlords and tenants. These changes are designed to encourage more rental properties in the market while providing clarity and protection for both parties.

While the final version of the law is yet to be seen, some changes are set to come into effect on the 30th of January 2025, the rest following late 2025, leaving property owners and renters with time to prepare for what’s ahead.

What are the key changes introduced by the bill?

  1. Reintroduction of ‘No Cause’ Terminations: Landlords can now end a periodic tenancy without providing a specific reason, given that they provide at least 90 days’ notice. This change aims to give landlords more confidence in managing their properties.
  2. Adjusted Notice Periods:
    – For Landlords: The notice period to end a periodic tenancy has been reduced to 42 days in specific circumstances, such as the landlord needing the property for personal use.
    – For Tenants: Tenants now need to provide 21 days’ notice to end a periodic tenancy, reduced from the previous 28 days.
  3. Fixed-Term Tenancies: Landlords regain the ability to end a fixed-term tenancy at its conclusion without providing a specific reason.
  4. Pet Regulations:
    – Pet Bonds: Landlords are permitted to require a pet bond, up to a maximum equivalent of two weeks’ rent, to cover potential pet-related damages.
    – Consent and Liability: Tenants must obtain written permission to keep pets, which landlords can only refuse on reasonable grounds. Tenants are fully liable for any pet-related damage beyond normal wear and tear.

Implementation Timelines: 

  • 30 January  2025: Changes related to tenancy terminations, including ‘no cause’ terminations and adjusted notice periods, can start taking effect. 
  • Late 2025: Pet-related changes, including the introduction of pet bonds and new consent rules, are expected to commence. 

Implications for Landlords and Tenants: 

While full details are still pending, the intention behind these updates is to encourage more long-term rentals and create stability for tenants while balancing the interests of landlords. These amendments are anticipated to make the rental market more attractive. 

What Does This Mean for Property Managers?

The upcoming legislative changes will have a notable impact on property management practices across NZ and in our area of the Rodney (incl. the Hibiscus Coast) and Auckland’s North Shore. Professional rental property managers are already adjusting their processes to meet the new compliance standards.

For landlords, this is an ideal opportunity to consult with experienced property management professionals, such as Vertigro Property Management. Staying compliant with these updated regulations is essential to avoid penalties and protect the value of your investment properties. Let Vertigro’s expertise guide you through these changes with confidence and assurance. 

Why Work with Professional Property Managers? 

The changing legal environment makes working with professional property managers more critical than ever. An experienced team like Vertigro can help you:

  • Navigate legislative updates.
  • Maintain full compliance with the Residential Tenancies Act and other legal requirements.
  • Foster positive tenant relationships with clear communication and well-structured agreements.
  • Optimise your investment returns while minimising potential risks.

With the 30th of January 2025 approaching, new regulations on termination periods will bring significant changes to the rental market. At Vertigro Property Management, we prioritise keeping landlords informed and compliant with every legislative change. Our expert team ensures your property is managed to the highest standard, balancing regulatory obligations with practical solutions tailored to your investment goals.