What types of rental accommodations are covered by legislation governing residential tenancies in New Zealand?
The Residential Tenancies Act covers fixed term and periodic tenancies of residential property.
What types of rental accommodations are NOT covered by the Act?
Some provisions (market rent and notice to quit provisions) do not apply to short fixed-term tenancies of less than 120 days unless the tenancy is renewed. Tenancy agreements for fixed terms of 5 years or longer may not be covered if the tenancy agreement clearly states that the Act shall not apply.
Is it necessary to have a written agreement?
All new tenancies must have a written tenancy agreement, which must be signed by both the landlord and the tenant, and the tenant must be given a copy of it before the tenancy begins.
What about a signed move-in move-out condition report?
It is recommended that the landlord and tenant record the property's condition together at the start of the tenancy to help avoid disputes when the tenancy ends. Both parties should sign, date and keep a copy of the property inspection report. The form can be used again to check the property at the end of the tenancy.
How much can the landlord charge for a rental bond?
The landlord does not have to ask for a bond, but can legally charge up to the equivalent of 4 weeks' rent as bond. The landlord will be able to claim some or all of the bond money at the end of the tenancy if (i) there is damage done by the tenant, except for normal wear and tear; (ii) rent is left unpaid; (iii) the premises is left dirty or property is left behind; (iv) the tenant fails to fulfil any other legal obligation and the landlord suffers some loss as a result.
The tenant pays the bond to the landlord, who must lodge it with the Tenancy Services Centre within 23 working days. A Tenancy Services Bond Lodgement form, completed and signed by both landlord and tenant, must be sent with the bond cheque. Tenancy Services Centre will send both parties a confirmation letter and a Bond Refund form, and will hold the bond money until the end of the tenancy, when either party may apply for its refund.
The Bond Refund form should be signed by both parties, after they have inspected the property, and sent to Tenancy Services Centre. If there is some damage or other claim that the tenant agrees to have taken out of the bond, the landlord's cost of repairs or other claim will be paid from the bond and the tenant will be paid the balance. If the parties cannot agree on how the bond should be paid out, the landlord should make an application to the Tenancy Tribunal for the amount claimed to be deducted from the bond, and a mediator is then assigned to help the parties work it out.
What other fees can the landlord charge?
A landlord may not ask for more than 2 weeks' rent in advance, unless the rent is paid weekly, in which case the landlord can only ask for 1 week in advance. The landlord may not ask for more rent until the end of the period for which the rent has been paid.
A landlord may not charge key money except with the consent of the Tenancy Tribunal. (Key money is any payment requested by the landlord for letting the property to the tenant, except for rent, bond, or a real estate agent's fee or solicitors fee. A key money charge would include such things as charging for a key to the premises.)
When is the landlord allowed to increase the rent?
The landlord must give 60 days' written notice of any rent increase and cannot increase the rent more than once in any 6-month period. In a fixed term tenancy, rent cannot be increased until the end of the term, unless provided for in the tenancy agreement.
How can a lease be terminated?
A fixed term tenancy, which ends on a specific date, cannot be terminated before the end of the agreement unless the parties agree otherwise. If the parties cannot agree, either party may apply to the Tenancy Tribunal to end the tenancy.
To end a periodic tenancy, the landlord must give the tenant 90 days' written notice, and the tenant must give the landlord at least 21 days' written notice.
If a property is sold when there is a periodic tenancy in place and the new owner requires vacant possession, or if the landlord requires the property for family members or employees, the landlord may give the tenant 42 days' written notice instead of the usual 90 days' notice.
Can a tenant assign a lease or sublet the premises?
Unless the tenancy agreement specifically prohibits assigning or subletting, the tenant may assign the lease or sublet the premises with the landlord's permission, which the landlord cannot unreasonably withhold. The landlord can set reasonable conditions on subletting or assigning, but cannot discriminate against potential tenants on the basis of colour, race, ethinic or national origin, sex, marital status, age, religious or ethical belief, because they have children, because they are unemployed, or for any other prohibited reasons set out in the Human Rights Act 1993.
When is the landlord permitted to enter the premises?
The landlord may enter the premises to inspect, make repairs or show the premises to potential tenants or purchasers, with the tenant's consent, and may not inspect the premises more than once in 4 weeks, except to check on work done by the tenant. The tenant cannot unreasonably refuse the landlord entry for these purposes. The landlord is prohibited from harassing the tenant or interfering with their reasonable peace, comfort and privacy.
On what grounds can a landlord evict a tenant?
The landlord may apply to the Tenancy Tribunal for a possession order and have the tenant evicted if the tenant is:
(a) more than 21 days behind in the rent;
(b) failing to comply with the terms of the tenancy agreement (if the landlord has given at least 10 working days' notice to put matters right and the tenant has not done so);
(c) substantially damaging the property or threatening to do so;
(d) assaulting the landlord or others, or threatening assault.
The foregoing summary is provided for information purposes only and is not to be considered legal or business advice. The information may not be complete, accurate or applicable for any particular situation and should not be relied upon.
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