In May of this year, the New Zealand government introduced the Residential Tenancies Amendment Bill, a legislative proposal that could bring substantial changes to the rental property landscape. These changes aim to strike a balance between the rights of landlords and tenants while addressing modern needs in tenancy management.

At Vertigro, we understand the importance of staying informed and prepared for legislative updates. Below, we’ve outlined the key changes in the bill and what they mean for you as a property owner or tenant.

Key Changes in the Amendment Bill

  1. Termination Rules

The proposed changes introduce more clarity and flexibility for both landlords and tenants regarding the termination of tenancies:

  • 90-Day No-Cause Terminations: Landlords will still be able to end periodic tenancies with a 90-day no-cause notice.
  • 42-Day Notice Periods: This notice period applies to specific situations, such as when a property is sold or the owner plans to move in.
  • 21-Day Notice for Tenants: Tenants will revert to a 21-day notice period for terminating their tenancy agreements.
  1. Pet-Friendly Policies

The bill outlines provisions that make it easier for tenants to have pets while offering landlords protections against potential risks:

  • Pet Bond: Landlords can charge a separate pet bond of up to two weeks’ rent.
  • Returning the Pet Bond: Tenants can reclaim their pet bond if they decide not to keep a pet during their tenancy.
  • Permission for Pets: Tenants will need written consent from the landlord or a tenancy agreement clause allowing pets.
  • Reasonable Grounds for Refusal: Landlords must provide reasonable grounds for denying a pet, such as property size or suitability.
  • Tenant Accountability: Tenants will remain responsible for any damage caused by their pets.
  1. Smoking Rules

New rules clarify how smoking can be managed within rental properties:

  • Indoor Smoking Ban: Landlords can prohibit indoor smoking in the tenancy agreement. However, this restriction does not extend to separate storage areas, like garages.
  • Outdoor Smoking Restrictions: Landlords can establish outdoor smoking rules but must ensure they are reasonable and respect tenants’ rights to enjoy the property.

What These Changes Mean for Property Owners

The proposed changes provide property owners with greater clarity and flexibility in managing their rental properties. While these rules are not yet in effect (likely early 2025 for Termination and Smoking Rules and later for Pet Bond), understanding the changes now will help you avoid potential disputes and ensure compliance when they are enacted.

At Vertigro, we’re committed to staying ahead of legislative changes and supporting our clients in navigating them seamlessly. Whether you have existing tenants, are looking to purchase an investment property, or better understand how these changes affect your investments, our team is here to assist.

Stay Compliant and Profitable with Vertigro

Understanding legislative updates is vital to protecting your property investments and maintaining positive tenant relationships. Contact the team at Vertigro today for tailored advice and support to ensure your rental properties are compliant and profitable in the transforming rental landscape.