What You Need to Know About the Recent Residential Tenancies Act Changes (and How They Affect Notice Periods)

On January 30, 2025, changes to New Zealand’s Residential Tenancies Act (RTA) came into effect, altering notice periods for ending periodic tenancies. These updates impact both tenants and landlords, ensuring greater clarity and fairness for all parties involved. Here’s a breakdown of what’s changed, what it was before, and how these changes benefit both tenants and property owners.

Changes to Notice Periods: What’s New?

1. Landlord Ending a Tenancy:

New Rule: Landlords can now end a periodic tenancy by providing 90 days' notice without needing to specify a reason. This is referred to as a "no cause termination."

Previous Rule: Previously, landlords needed to provide a reason for ending a tenancy or follow stricter requirements for issuing notices.

2. Tenant Ending a Tenancy:

New Rule: Tenants must provide 21 days' notice to end a periodic tenancy.

Previous Rule: This remains consistent with prior requirements.

3. Reduced Notice Period for Landlords in Specific Cases:

New Rule: In certain circumstances, landlords may issue a 42-day notice if they or a family member intend to occupy the property as their main residence.

Previous Rule: This provision already existed but has been emphasised for clarity with the recent changes.

Benefits for Tenants

1. Greater Transparency and SecurityThe 90-day "no cause termination" period provides tenants with more time to plan their next steps, find a new property, and make necessary arrangements. This change reduces the likelihood of abrupt moves and enhances overall stability for renters.

2. Consistent Notice PeriodTenants maintain their ability to provide 21 days’ notice, offering flexibility to transition to a new rental or living situation without lengthy commitments.

Benefits for Landlords

1. Flexibility in Property Management:The 90-day notice period without requiring a specific reason allows landlords to manage their properties more effectively. This could include making renovations or preparing the property for sale without needing to disclose sensitive or complex details to tenants.

2. Shorter Notice for Personal Use: The 42-day notice option enables landlords to reclaim their property quickly in circumstances where they or a family member need the home as a primary residence. This ensures landlords’ personal needs are accommodated without unnecessary delays.

3. Clearer Guidelines: These changes simplify the rules, making it easier for landlords to understand their rights and responsibilities under the RTA.

Key Considerations for Tenants and Landlords

Specific Situations: Landlords can still end tenancies for specific reasons with shorter notice periods, such as unpaid rent or damage to the property.

Stay Informed: Always check with Tenancy Services for the most up-to-date guidance on notice periods and your specific tenancy situation.

Why These Changes Matter

These updates to the Residential Tenancies Act aim to strike a balance between the rights of tenants and landlords, fostering a more equitable rental market. Whether you’re a tenant seeking stability or a landlord managing property needs, these changes provide clearer expectations and improved outcomes for all parties.

For more information or tailored advice, visit Tenancy Services or reach out to Maz and the team at Williams Property Solutions.