New Zealand Rental Laws: Pro-landlord, Neutral or Pro-tenant?
New Zealand's landlord and tenant laws are judged by the Global Property Guide to be Neutral between landlord and tenant.
Rents: Can landlord and tenant freely agree rents in New Zealand?
Landlord and tenant can freely agree on the rent.
The landlord must give 60 days' notice in writing to the tenant before implementing a rent increase. The rent can not be increased within 6 months of either the start of the tenancy, or the last rent increase. In fixed term tenancies, the rent can only be increased if the tenancy agreement stipulates. Tenants can apply to the Tenancy Tribunal for rental assessment if he thinks the rent increase is excessive.
Deposits
Also known as Bonds in New Zealand. The landlord can ask for a security bond amounting to four weeks' rent or less, which must be lodged with the Tenancy Services Centre within 23 working days. At the end of tenancy, the bond will be refunded to the tenant, if the tenant has fully paid, and there is no damage to the property. The landlord can also ask for rent advance, but only for a maximum of two weeks' rent. A recent change already in effect is the modernisation of tenancy bonds. Bonds must now be lodged online, removing the need for physical signatures. This streamlined process makes it more convenient for tenants, allowing them to submit their bond digitally without the hassle of printing or scanning forms.
What rights do landlords and tenants have in New Zealand, especially as to duration of contract, and eviction?
Tenancy agreements can be either be for a fixed term, or a periodic term.
- Periodic tenancies, which are the most common in New Zealand, have no fixed date for the end of the tenancy, and allow both the landlord and tenant to end the tenancy, through a written notice.
- A fixed term tenancy is for a set period of time, and cannot be ended before that time, unless both parties agree, or as ordered by the Tenancy Tribunal.
As of January 30, 2025, the rules around periodic tenancies have changed to offer greater flexibility to both landlords and tenants. Landlords can now end a periodic tenancy with 90 days’ notice, without needing to provide a specific reason. This reintroduction of “no cause” terminations gives landlords more freedom when they need to take back possession of a property.
Tenants, on the other hand, benefit from increased flexibility as well. They are now only required to give 21 days’ notice to end a periodic tenancy.
In situations where the landlord or a family member needs to occupy the property as their main residence for at least 90 days, or if the property is being sold, the landlord may terminate the tenancy with just 42 days’ notice.
Another significant change is that landlords are now allowed to end a fixed-term tenancy at the conclusion of its term without having to provide a reason. This update gives landlords greater flexibility in managing their rental properties by ensuring that fixed-term tenancies do not automatically renew unless both parties agree to continue. It’s important for both landlords and tenants to be aware of this change so they can make informed plans as the end of a fixed-term agreement approaches.
Legislation
The Residential Tenancies Act 1986 governs the relation between landlord and tenant. A written agreement is required in all tenancies.
How effective is the legal system
in New Zealand?
The Residential Tenancies Act 1986 is administered by the Department of Building and Housing. Landlord-tenant issues are heard and settled before the Tenancy Tribunal, which is under Ministry of Justice. There are a variety of orders issued by the Tribunal but the most common order agreed to in mediation or made at the Tribunal are possession, monetary and work orders.
Orders of possession are usually claimed by landlord if tenant is 21 days behind in rent; substantial damage to property by tenant or threatening to do so; threats or grave assault to owner and his family or agent; and breach of agreement. Monetary orders include payments for arrears in rent or refund of overpaid rent; payments for damages; and reimbursement of costs and the like.
It takes an average of 30 days for court rulings to be enforced regarding eviction of tenant.
Brief history: Recent changes in New Zealand's landlord and tenant law
The Residential Tenancies Act 1986 was been update a dozen times until the writing of this article in 2025.