Residential Tenancies Amendment Bill passes to create balanced rental market

“This legislation delivers sensible changes to tenancy laws that address the imbalances created by the previous Government’s policies,” said Minister Bishop.

The Residential Tenancies Amendment Bill has officially passed its third reading in Parliament, marking a significant step in the coalition Government's efforts to create a balanced rental market, Housing Minister Chris Bishop announced today.

“This legislation delivers sensible changes to tenancy laws that address the imbalances created by the previous Government’s policies,” said Minister Bishop.

He highlighted that under previous tenancy laws, rents skyrocketed by $170 per week between 2017 and 2023, while the social housing waitlist grew by 20,000 families. Thousands more were forced to rely on emergency housing motels.

Key Provisions of the Bill The Bill reintroduces key policies aimed at restoring confidence among landlords while ensuring tenants have more secure and accessible housing options. The main changes include:

Reintroducing 90-Day 'No Cause' Terminations: Landlords can now end periodic tenancies without specifying a reason, provided tenants are given 90 days' notice.

Shortened Notice Periods: Landlords can end periodic tenancies with a 42-day notice in specific circumstances, while tenants can end them with 21 days' notice (reduced from 28 days).

Fixed-Term Tenancy Flexibility: Landlords regain the ability to end fixed-term tenancies at their conclusion without providing a specific reason, offering more certainty for property use.

Pet-Friendly Rental Policies: Landlords can now request a pet bond and set reasonable conditions for pet ownership in rental homes. Tenants, however, are fully liable for any pet-related damage beyond normal wear and tear.

Supporting Tenants and Landlords Alike Minister Bishop emphasized the dual focus of the reforms: “The reintroduction of ‘no cause’ terminations provides landlords with a vital backstop, encouraging them to offer properties to tenants who might otherwise be deemed too risky. On the other hand, tenants can look forward to more flexibility and better chances of securing pet-friendly homes.”

The ability to charge a pet bond addresses a longstanding concern for both renters and landlords. Pets are integral to many Kiwi families, but the shortage of pet-friendly rentals has caused significant stress.

“By allowing landlords to require a pet bond, we’re ensuring more tenants can live with their beloved pets while protecting landlords from financial risks,” Bishop noted.

Addressing Broader Housing Challenges These reforms are part of the Government’s broader strategy to tackle New Zealand’s housing crisis. Alongside the amendments, the Government is working to unlock urban land for housing, invest in infrastructure, and streamline construction processes to reduce building costs.

Implementation Timeline The new tenancy termination rules will take effect from 30 January 2025, while pet-related changes, including the pet bond policy, will be implemented later in 2025.

“We’re delivering changes that strike a fair balance, offering both landlords and tenants greater confidence in the rental market,” Bishop concluded. “This is another step towards ensuring all New Zealanders, and their pets, have a safe and secure place to call home.”

Further announcements on the rollout of these reforms are expected in early 2025.