The following information was correct at the time of writing; however it’s an ever-evolving industry so we do recommend doing your own research.
While you may think of landlords as experienced know-it-alls when it comes to rental rights and responsibilities, few of them actually know their lawful obligations. It’s true that the information on the Residential Tenancies Act NZ can be a lot to digest at once, but we are here to make your life easier! We will enlist the most important parts of the Act for you. Specifically, this article will serve as a guide to the Residential Tenancies Act and tell you:
- who the Act protects and who it doesn’t;
- examples of real-life living arrangements covered by the Act;
- how to ensure you stay up-to-date with changing regulations.
What is the Residential Tenancies Act?
The Residential Tenancies Act (otherwise referred to as ‘the Act’ or ‘RTA’) sets out the rights and responsibilities of landlords and tenants who rent residential properties in New Zealand.
The main purpose of the Residential Tenancies Act
The RTA is the law made to protect tenants and landlords in New Zealand. Its main purpose is to facilitate relations between landlords and their tenants by ensuring they comply with tenancy laws for the duration of the tenancy.
Updates and major amendments
The Act was issued in 1986 but it is often updated. The latest changes to Residential Tenancies Act regulations took place in stages, from August 2020 to February 2021.
Residential Tenancies Act sections
The Act consists of 5 parts, namely:
- Application of Act
- Boarding House Tenancies
- Tenancy Tribunal
- Administration
- Miscellaneous Provisions
You can obtain the text in paper, but also read its online version on the NZ government’s official website.
You can also find plenty of important information in this awesome video:
Contracting into the Act: What it means
If an individual is in a renting situation not covered by the Act, they can choose to contract into it. They will have to determine which part of the Act applies to their situation and have a written agreement created that clearly describes how everyone is to ‘contract in’ (e.g., what sections apply).
Why landlords and tenants may want to contract into the Act
If you are a landlord or tenant that is in a living situation not covered by the Act, you may want to consider contracting into it because:
- If a dispute arises, the Act will ensure that the parties involved will be able to apply to the Tenancy Tribunal.
- If you are a landlord, you will have peace of mind by knowing your tenants will be kept legally responsible for keeping the property clean and paying rent on time.
- It will help you budget properly, as expenses and earnings, like rent increases/reductions and payments will be laid out clearly in advance.
Who IS protected under the Residential Tenancies Act?
Tenants
A tenant is someone who rents a house from a landlord. This could be an adult renting an apartment, a family with children renting a house, or a couple renting a property to live in long-term.
- The Act outlines NZ tenant rights and responsibilities.
- The Act provides tenants with a system for helping resolve tenancy disputes.
- When multiple people rent a house to live in together, they all become tenants together.
Boarding houses
A boarding house is a property for six or more tenants, where unrelated tenants each rent a room and share facilities, such as the kitchen and bathroom. Real-life examples of boarding houses include co-living spaces for young city workers, students or people who travel for work for long periods.
- All tenants have their own tenancy agreement with the landlord to rent a single room.
- There are no fixed-term tenancies in a boarding house, with agreements intended to last 28 days or more.
- Boarding house landlords need to stay up-to-date with changes to tenancy law and comply with the healthy homes standards.
- A boarding house landlord can make house rules, which must not breach the Residential Tenancies Act or any other law.
Unlawful residential premises
Unlawful residential premises are properties that cannot lawfully be lived in. In these properties, landlord obligations haven’t been met. Real-life examples of unlawful residential premises would include a garage, a property in a commercial premise such as office buildings, or a minor dwelling, such as a granny flat.
- If a property has been deemed unsafe and unsanitary by the local authority, it is considered unlawful. Granny flats can be upheld under the RTA as long as the flat has a building code of compliance and meets the rules and requirements under the RTA.
- Tenants can give their landlord two days’ notice to end a tenancy if the premises was unlawful at the start of the tenancy and/or is still unlawful.
- The Tenancy Tribunal has full jurisdiction over unlawful residential premises cases.
Who IS NOT protected under the Residential Tenancies Act?
Some types of living arrangements aren’t covered by the Residential Tenancies Act. For example, the Act doesn’t cover flatmate situations, holiday homes and commercial tenancies, all of which we will talk about extensively below.
Section 5 of the Residential Tenancies Act explains all the different situations that it doesn’t apply to.
According to Residential Tenancies Act regulations, the following situations are not covered:
Flatmates
Flatmates are people who live in the property with the tenant but are not named on the tenancy agreement. In real life, this could include:
- A homeowner who finds someone to live in their house with them and rents a room to them.
- A few people who rent a house together but some of them don’t sign the tenancy agreement.
The Act is clear in that it “doesn’t cover flatmates”. In the above situations, you would have to look into tenants’ rights and contract into the Act if you wanted to make your arrangement official.
Boarders
Boarders are “people who live with the owner of the house”. Real-life examples of this would include:
- A homeowner hosting a student from abroad as part of an exchange.
- A homeowner living with a new partner but not sharing the home on paper.
Boarders have a relationship with a homeowner that ranges beyond monetary gain. For this reason, the Residential Tenancies Act landlord obligations don’t really apply here.
Minors
Minors are people under 18 years. Real-life examples include:
- Young students.
- A young, emancipated couple.
The Act says, “Landlords may not be able to enforce the terms of the tenancy agreement against a minor”. This means you may have a hard time as a landlord if you need to enforce the tenancy agreement against a minor, as you will need to apply to the Tenancy Tribunal and have to brush up on your landlords’ rights.
Landlord’s family members
Situations, where the tenants are family members of the owner/landlord, aren’t regulated by the Act. The Act does not cover arrangements “where the premises, not being a boarding house, continue to be used, during the tenancy, principally as a place of residence by the landlord or the owner of the premises or by any member of the landlord’s or owner’s family”. Real-life examples of this would include:
- A cousin living in the home freely.
- A mother-in-law living with a couple in the spare room of their home.
These are family relationships where rent would not be charged, so landlords’ responsibilities aren’t really an issue.
Student accommodation
This is accommodation officially used to house students. This includes:
- University student dorms.
- Student hostels.
According to the Act, “In these situations, the accommodation provider must have house rules. The accommodation provider must make sure the student tenants are aware of and have access to copies of the house rules”. It is worth noting that these rules will differ from regular tenant rights NZ.
Holiday homes
Holiday homes are the premises that are let for the tenant’s holiday purposes. This could be:
- A beach home visited by the owner in the summer months.
- A country home that they exchange with friends in holiday swaps.
The Act says that “If the homeowner wants to let their home to someone who wants it for a lengthy sabbatical or holiday, they could elect to ‘contract into’ the Residential Tenancies Act to avoid any doubt about whether the Act applies to their arrangement”.
Hotels and motels
These are the premises intended to provide temporary or transient accommodation. Real-life examples include:
- A five-star hotel.
- A bed and breakfast or Airbnb.
The Act says hotels and motels are “accommodation that is ordinarily provided for periods of less than 28 days at a time”. This means that a stay in such a place would not fall under the Act rules, and one would not abide by regular tenants’ rights.
Hospitals
According to the Act, a hospital “or other institution for the care of sick, disabled, or aged persons” does not fall under its rules. Residential Act regulations, therefore, would not apply to:
- Extended patient stays at hospitals.
- Stays in clinics for multi-day treatments.
If you are a long-term in-patient, there will be specific hospital rules that are expected to be followed.
Rest homes
These are the premises for people with significant difficulties coping with the activities of daily living. Some examples include:
- Residents in institutions for disabilities who need special care.
- Residents of homes for the elderly who need daily nurse attention.
The “Act doesn’t cover rest homes”, which are regulated under separate legislation by the Ministry of Health.
Commercial tenancies
This is a type of tenancy “where the premises are commercial premises”. Examples of situations where the Act would not apply are:
- Office buildings.
- A shop with a back room.
In these cases, there would be different avenues you would have to pursue to ensure that staying in the premises, rather than just working there, is legal.
Know your rights!
Knowing your tenant and landlord rights ensures that you always know what to do and what avenue to turn to when things get complicated. Being aware of your rights and responsibilities can make all the difference.
While it may be time-consuming to read the Residential Tenancies Act and get to know it thoroughly, there is help at hand. We hope our summary has answered your questions about what the Residential Tenancies Act is, but if you want to know more about landlord or tenant responsibilities, contact CGPM. Our professional team of Property Managers are well known as the best in Auckland!
