Residential Tenancies Act 1986. - Landlords Must Know
Recent changes to the Residential Tenancies Act 1986 have caused worry amongst landlords. Residential rental properties now must meet specific standards to avoid significant fines which we list below, together with a summary of changes.
Here is a link to the Residential Tenancies Act
Table of fines and fees for infringement offences from the Residential Tenancies Act 1986
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 | |||||
| Section | Description of offence | Fine (cl 1(a)) ($) | Fine (cl 1(b)) ($) | Fee (cl 2(a)) ($) | Fee (cl 2(b)) ($) | |||||
| 13(4)(b) | Failing to ensure tenancy agreement in writing, signed, and provided to tenant | 2,000 | 1,000 | 1,000 | 500 | |||||
| 13A(1G) | Failing to comply with section 13A(1A), (1CA), (1CB), or (2) | 2,000 | 1,000 | 1,000 | 500 | |||||
| 15(3) | Failing to give notice as successor | 2,000 | 1,000 | 1,000 | 500 | |||||
| 16(2A) | Failing to notify change of name or address | 2,000 | 1,000 | 1,000 | 500 | |||||
| 16A(6)(b) | Failing to appoint agent when outside New Zealand for longer than 21 consecutive days | 3,000 | 1,500 | 1,000 | 500 | |||||
| 17(5) | Requiring key money | 3,000 | 1,500 | 1,000 | 500 | |||||
| 17A(4) | Requiring letting fee | 3,000 | 1,500 | 1,000 | 500 | |||||
| 18(4)(b) | Requiring bond greater than amount permitted | 3,000 | 1,500 | 1,000 | 500 | |||||
| 18A(2)(b) | Requiring unauthorised form of security | 3,000 | 1,500 | 1,000 | 500 | |||||
| 19(3) | Breaching duties on receipt of bond | 3,000 | 1,500 | 1,000 | 500 | |||||
| 22F(3)(b) | Failing to state amount of rent in advertisement or offer | 2,000 | 1,000 | 1,000 | 500 | |||||
| 23(4)(b) | Requiring rent more than 2 weeks in advance or before rent already paid expires | 3,000 | 1,500 | 1,000 | 500 | |||||
| 29(6) | Failing to give receipt for rent | 2,000 | 1,000 | 1,000 | 500 | |||||
| 30(2)(b) | Failing to keep records | 2,000 | 1,000 | 1,000 | 500 | |||||
| 44A(3)(b) | Failing to itemise expenses incurred on assignment, subletting, parting with possession, or termination by consent | 2,000 | 1,000 | 1,000 | 500 | |||||
| 45(1AD)(b) | Failing to provide healthy homes information | 2,000 | 1,000 | 1,000 | 500 | |||||
| 47(4) | Failing to inform prospective tenants that premises on the market | 3,000 | 1,500 | 1,000 | 500 | |||||
| 48(4A) | Failing to notify tenant of results of test for contaminants | 2,000 | 1,000 | 1,000 | 500 | |||||
| 66I(7) | Failing to provide healthy homes information | 2,000 | 1,000 | 1,000 | 500 | |||||
| 66J(2B)(b) | Failing to inform prospective tenants that boarding house premises on the market | 3,000 | 1,500 | 1,000 | 500 | |||||
| 66J(4)(b) | Failing to notify tenant of results of test for contaminants (relating to boarding house facilities) | 2,000 | 1,000 | 1,000 | 500 | |||||
| 66T(1A) | Failing to notify tenant of results of test for contaminants (relating to boarding room) | 2,000 | 1,000 | 1,000 | 500 | |||||
| 123A(5)(b) | Failing to produce documents to chief executive | 3,000 | 1,500 | 1,000 | 500 |
Now is the time to act, with the Ministry of Business and Innovation giving landlords notice that compliance with the changes is mandatory.
What Are the Changes to the Residential Tenancies Act?
The Government has introduced the Residential Tenancies Amendment Bill with the main goal of improving the rental housing stock in New Zealand. It aims to make homes warmer, drier and safer for those who rent. This developed from a trial of a rental housing Warrant of Fitness for Housing New Zealand properties in 2013. They found that their homes which complied with the WOF were healthier and safer to live in.
As a landlord, there are some key changes to the Residential Tenancies Act you must be aware of:
Smoke Alarms in Rental Properties
All residential rental properties must have at least one working smoke alarm installed. Each smoke alarm must be correctly installed, meet the NZ Building Code NZ4512 and be either in or within three metres of a bedroom. One is also needed on each story of the house. The tenant is responsible for changing the batteries and telling you if it is not working.
Healthy Homes Compliance Statement
At the start of each new tenancy, you must give your tenant a written statement together with their tenancy agreement which states;
What the heating standard is and minimum standards apply.
What insulation is in the ceilings, floors or walls and minimum standards apply
Ventilation Standard - every bathroom and kitchen is required to have a mechanical extractor fan, every habitable room must have an opening window, door or skylight to outside and meet minimum requirements.
Moisture Ingress and Drainage Standard - every property must have gutters and downpipes that effectively drain storm water and a ground floor moisture barrier must be installed.
Draught Stopping Standard - Every property that has an open fireplace must have it blocked off unless you have the tenants written consent. The property must be free from unintentional and unreasonable gaps or holes that allow noticeable draughts in or out of the building.
From 11 February 2021, multiple changes to tenancy legislation will take effect.
- Security of rental tenure – Landlords will not be able to end a periodic tenancy without cause by providing 90 days’ notice. New termination grounds are available to landlords under a periodic tenancy and the required notice periods will change.
- Changes for fixed-term tenancies – Fixed-term tenancies signed on or after 11 February 2021 will convert to periodic tenancies at the end of the fixed term unless the parties agree otherwise, the tenant gives a 28-day notice, or the landlord gives notice in accordance with the termination grounds for periodic tenancies.
- Making minor changes – Tenants can ask to make changes to the property and landlords must not decline if the change is minor. Landlords must respond to a tenant’s request to make a change within 21 days.
- Prohibitions on rental bidding – Rental properties cannot be advertised without a rental price listed, and landlords cannot invite or encourage tenants to bid on the rental (pay more than the advertised rent amount).
- Fibre broadband – Tenants can request to install fibre broadband, and landlords must agree if it can be installed at no cost to them, unless specific exemptions apply.
- Privacy and access to justice – A suppression order can remove names and identifying details from published Tenancy Tribunal decisions if a party who has applied for a suppression order is wholly or substantially successful, or if this is in the interests of the parties and the public interest.
- Assignment of tenancies – All requests to assign a tenancy must be considered. Landlords cannot decline unreasonably. If a residential tenancy agreement prohibits assignment, it is of no effect.
- Landlord records – Not providing a tenancy agreement in writing is an unlawful act and landlords will need to retain and provide new types of information.
- Enforcement measures being strengthened – The Regulator (the Ministry of Business, Innovation and Employment) has new measures to take action against parties who are not meeting their obligations.
- Changes to Tenancy Tribunal jurisdiction – The Tenancy Tribunal can hear cases and make awards up to $100,000. This is a change from $50,000.
Tenancy Abandonment Process
You are now able to get access to and possession of a rental property which has been abandoned. While this is a good thing, using the services of a property manager can prevent poor quality tenants renting your property in the first place.
Letting Fee Ban
A ban on charging letting fees came into force on 12th December 2018 meaning it is now unlawful for landlords and property managers to charge any fees to a tenant. This means that professional property managers will be looking to pass this cost onto landlords from this date. Landlords and Property Managers may charge tenants an option fee.
Make Life Easier: Use an Experience Auckland Property Manager
It’s our job to understand and ensure your properties comply with the changes to the Residential Tenancies Act 1986. We manage rentals throughout the North Shore, Hibiscus Coast, Dairy Flat, Central Auckland and Rodney areas. We’d love to have a chat with you about how we can help you get the best value of out of your rental property assets. Give us a call on 09 948 3255 or read more about our Full Rental Property Management Service today!
