New tenancy laws come into effect

A key focus of the reform has been to improve the security of tenure and enable tenants to put down roots in their communities.

For the first time in nearly a generation, our rental laws are fit for the times, thanks to this Government's Residential Tenancies Act reform, says Associate Minister of Housing (Public Housing), Poto Williams.

"The new tenancy rules come into effect today and reflect the realities of the modern-day renting environment. Tenants are now able to make their house a home. From today it's critical that landlords and tenants understand how the changes affect them," says Poto Williams.

"This Government believes the updated rental laws now provide adequate protections for both tenants and landlords. The reforms have come at a time when Kiwis are renting now more than ever, including whānau and older people," says Minister Williams.

A key focus of the reform has been to improve the security of tenure and enable tenants to put down roots in their communities.

"We know that insecure tenure has significant impacts on families and older people and is linked to negative health, education and employment outcomes," she says.

Under the second phase of the Residential Tenancies Amendment Act 2020, landlords can no longer use "no cause" terminations for periodic tenancies. Instead, landlords must give justified grounds to end a periodic tenancy and communicate the reason for the tenant.

In addition, fixed-term tenancies will automatically convert to periodic tenancies upon expiry, unless the parties agree otherwise, the tenant gives notice, or the landlord gives notice using one of the justified grounds at the end of the fixed-term.

"This will reduce the stress many tenants feel each year where they face the prospect of having to find a new home at the end of their fixed-term tenancy," says Poto Williams.

The Associate Housing Minister also said the Government had been concerned some tenants may be unwilling to enforce their rights in the Tribunal for fear of being blacklisted from future tenancies.

"The reform will better enable both landlords and tenants to enforce their rights without fear of reprisal by providing for name suppression of parties who are wholly or partially successful in the Tribunal upon application," she says.

The reform will also modernise enforcement of tenancy law with the introduction of new enforcement tools for the Regulator (the Ministry of Business, Innovation and Employment). Regulations prescribing the form of infringement notices have also been made law.

"The Government has been mindful of the need to modernise the law in a way which is proportionate. These changes get the balance right, ensuring landlords continue to have the tools they need to manage their business. Both landlords and tenants can benefit from increased security and certainty," Poto Williams says.

(With Inputs from New Zealand Government Press Release)