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A Comprehensive Guide to Tenancy Agreements in New Zealand

Tenancy Agreement NZ

Introduction

A tenancy agreement is a contract between a landlord and a tenant. It sets out everything that a landlord and a tenant have agreed to about the tenancy. This comprehensive guide covers all aspects of tenancy agreements in New Zealand, based on official government sources including Tenancy Services and the Residential Tenancies Act 1986.

Legal Requirements for Tenancy Agreements

Written Agreement Requirement

Tenancy agreements must be in writing. The landlord must give the tenant a copy of the signed agreement before the tenancy starts. From 11 February 2021, not providing a tenancy agreement in writing is an unlawful act and landlords will need to retain and provide new types of information.

Even if there is no formal written agreement, the Residential Tenancies Act 1986 still applies. Landlords and tenants still have to follow the rules, even if they do not have a written agreement. However, if a landlord does not provide a signed tenancy agreement in writing to a tenant, they are committing an unlawful act and an infringement offence.

Tenants should read the tenancy agreement carefully before they sign it, including all the terms and conditions. If there is anything they do not understand, they should seek advice before they sign.

Tenancy Agreement Templates and Builder Tools

Available Templates

Tenancy Services provides tenancy agreement templates for landlords to use. There is also an online tenancy agreement builder that allows landlords to create and customise tenancy agreements.

Landlords can write their own tenancy agreement, as long as they include the minimum information required by the Act. However, they must include the required statements in their tenancy agreements.

Template Options

Essential Information Required in Every Tenancy Agreement

Every tenancy agreement shall include the following minimum information:

Mandatory Details

Full names and contact addresses of the landlord and tenant(s), including email addresses and mobile phone numbers if available

Address of the rental property

Date the tenancy agreement is signed

Date the tenancy will begin

Address for service for both the landlord and the tenant

Age verification - whether the tenant is under the age of 18

Bond amount charged (if any)

Rent amount and frequency of payments

Payment method for rent (for example, a bank account number)

List of chattels (like furniture, curtains and other fittings) provided by the landlord

End date if the tenancy is a fixed-term tenancy

Signed healthy homes compliance statement

Separately signed statement with details of the property's current level of compliance with the healthy homes standards

Address for Service

If a landlord or tenant provides an electronic address for service as an additional address for service, you can use it to serve notices. This is an important legal requirement for official communications.

Reference: Section 13A of the Residential Tenancies Act 1986 - Contents of tenancy agreement

Required Statements for Tenancy Agreements

Landlords need to include specific statements in their tenancy agreements.

Detailed guidance: Required Statements for Tenancy Agreements

Healthy Homes Compliance Statement

All new or renewed tenancy agreements must include specific information about the rental property's current level of compliance with the healthy homes standards. Landlords must include a statement in new, renewed or varied tenancy agreements that confirms: that on and after the start of the tenancy, the landlord will comply with the healthy homes standards as required by either section 45(1)(bb) – Residential Tenancies, or section 66I(1)(bb) – Boarding House Tenancies, of the Residential Tenancies Act 1986, or that the landlord already complies with the healthy homes standards.

From 1 December 2020, most new or renewed tenancy agreements must also include specific information about the landlord's current level of compliance with the healthy homes standards.

Tools and templates:

Insulation Statement

All rental properties must have ceiling and underfloor insulation where it is reasonably practical to install. Landlords must provide an insulation statement in all new tenancy agreements. This can be included in the healthy homes compliance statement or provided separately.

The insulation statement must include all of the required information for insulation that is in the walls, ceiling and underfloor space of the rental. Where a landlord cannot find the required information for a specific insulation (for example, the walls) they must include the following information in their insulation statement: describe the information that the landlord cannot find, explain why the landlord has not been able to find the information, confirm that the landlord has made all reasonable efforts to find the information.

Landlords could be liable for a penalty of up to $500 if they don't include a complete insulation statement, or if they include anything they know to be false or misleading.

Insurance Statement

Landlords must provide insurance information in any new tenancy agreement. This includes:

• Whether the property is insured • The excess amount of any relevant policies • Information about insurance that is relevant to the tenant's liability for damage to premises

If the rental property is part of a body corporate, landlords must include insurance information that is relevant to the tenant's liability for damage of both the rental property itself, and the shared facilities. Landlords must also include a statement telling tenants they are able to request a copy of any insurance policies for the property.

Who Should Be Named on the Agreement

Individual Parties

All tenancy agreements should include the full legal names of the landlord and tenants.

For a person: Write their full legal name on the tenancy agreement. Landlords should check the tenant's identity before they move in using a Pre-Tenancy Application Form.

For a company: Write the legal company name. This might be different to the trading name or franchise holder name. For example, 'Radley Design Ltd' instead of 'Joe Radley Design'.

For a trust: Include the names of the trustees as well as the name of the trust. For example, Jane and Mary Brown as trustees for the Brown Family Trust.

Property Management Arrangements

If the property is managed by a property manager, write the names of both the owner and the property management company as landlord. For example, Smith Property Management as agent for Andrew Jones. You can then record the property manager's contact details as the landlord's contact details.

If the owner isn't on the agreement, the property manager takes on all the landlord's responsibilities. They could be held responsible for:

• Any Tenancy Tribunal orders issued in favour of the tenancy • Paying any monetary orders issued by the Tenancy Tribunal
• Any actions or non-actions of the owner

It also means the owner may not be able to apply for enforcement on a Tenancy Tribunal order.

Adding Extra Conditions to Tenancy Agreements

Landlords cannot add any conditions they want to the tenancy agreement. Extra conditions must comply with the law.

Detailed guidance: Adding Conditions to the Tenancy Agreement

The Act generally applies despite contrary provisions, meaning any agreement or arrangement, or any provision of any agreement or arrangement, entered into in respect of a tenancy to which this Act applies, that is inconsistent with any of the provisions of this Act, or that purports to exclude, modify, or restrict the operation of any such provision, shall be of no effect unless the inconsistency, exclusion, modification, or restriction is expressly permitted by this Act.

Reference: Section 11 of the Residential Tenancies Act 1986 - Act generally to apply despite contrary provisions

Electronic Signatures

Electronic signatures may be used to sign a tenancy agreement if both parties agree. They are as valid as a traditional written signature if certain requirements are met.

Electronic signatures can take many forms, including:

• A scanned or photographed image • Signing on a device using a stylus • Digital signatures using encryption (more secure option)

There is a risk of electronic signatures being intercepted and used by someone else, which can make them less secure than a traditional written signature. A digital signature is a more secure form of electronic signature, which uses encryption to reduce the risk of it being copied or altered.

Legal framework: Contract and Commercial Law Act 2017

Documents That Landlords Must Keep

Landlords are also required to keep and provide additional records about the property, including healthy homes standards information and maintenance records. Landlords must keep copies of all documentation relating to the rental home during the tenancy and for 12 months after the tenancy ends.

Detailed information: Landlords Providing Records

Legal reference: Section 123A of the Residential Tenancies Act 1986 - Information and documents that landlord must keep

Required Records

Landlords must keep the following documents during the tenancy and for 12 months after the end of the tenancy:

Tenancy agreement variations - Any variations of the tenancy agreement

Inspection reports - Any reports of inspections carried out by or for the landlord during the tenancy

Maintenance and repair records - Records of any building work for which a building consent is required, prescribed electrical work, sanitary plumbing, gasfitting, or other maintenance or repair work carried out by or for the landlord during the tenancy

Tradesperson reports - Any reports or assessments by a tradesperson of work that is carried out or required in relation to the landlord's compliance with section 45 or section 66I of the Act

Healthy homes records - Records that relate to the landlord's compliance with the healthy homes standards

Advertisements - Any advertisement for the tenancy (including an advertisement from before the start of the tenancy)

Correspondence - Any notices or correspondence between a landlord (or a person acting on the landlord's behalf) and a tenant (or a person acting on the tenant's behalf), or a prospective tenant (or a person acting on the prospective tenant's behalf) in relation to the tenancy

Additional Record-Keeping Requirements

Landlords must keep rent and bond records for seven years after the tax year to which they relate. Not providing this information or providing false or misleading information is an unlawful act. If the landlord has made all reasonable efforts to get the required information, but could not, they must make a statement to this effect.

Resource: Receipts and Records Information

Types of Tenancies

Comprehensive guide: Periodic or Fixed-Term Tenancy

Periodic Tenancy

A periodic tenancy can start if a landlord and a tenant agree to it in the tenancy agreement. A periodic tenancy agreement has no end date. It continues until either the tenant or the landlord gives the correct written notice to end the periodic tenancy.

Fixed-Term Tenancy

A fixed-term tenancy agreement lasts for a set amount of time that is more than 90 days – for example, 1 year. There is no maximum length for a fixed-term tenancy. You must include the length on the tenancy agreement and the date the fixed-term ends.

Generally, a landlord or tenant cannot give notice to end a fixed-term tenancy early. There are limited exceptions to this rule, and other options available if the landlord or tenant want to end a tenancy early. Once the fixed-term ends, the fixed-term tenancy automatically becomes a periodic tenancy unless: During the period that starts on the 90th day before expiry and ends on the 21st day before expiry (the effective period), either party gives appropriate notice.

Change of Contact Details

If your contact details change during the tenancy, you must give the other party your new contact details within 10 working days. If Tenancy Services holds a bond for the tenancy, you must also let them know the new details within 10 working days.

Contact details include:

• Phone number • Contact address
• Email address • Address for service

Contact Tenancy Services: Contact Us

Making Changes to a Tenancy Agreement

Sometimes, landlords and tenants may want to vary an agreement or extend or renew the fixed-term tenancy agreement for a further period. Any changes must be documented and follow the legal requirements under the Act.

Detailed guidance: Making Changes to a Tenancy Agreement

Boarding House Tenancy Agreements

Boarding house tenancy agreements need additional information. These agreements have specific requirements and may include different provisions compared to standard residential tenancy agreements.

Resources:

Agreements with Flatmates

Agreements between tenants (or homeowners) and their flatmates are not covered by the Residential Tenancies Act 1986. This means flatmates are not part of the tenancy agreement. Flat/house sharing agreements between tenants and other flatmates are not covered under the Residential Tenancies Act 1986.

There should be a written record of what has been agreed by all parties. Tenancy Services provides a flat-sharing agreement template for this purpose. The agreement starts on a specified date and will continue on a weekly/fortnightly basis. The rent is payable weekly/fortnightly in advance by the flatmate, and a bond is payable to the head tenant with a written receipt provided.

Template: Flat-Sharing Agreement [PDF, 63 KB]

Key Features of Flatmate Agreements

• The flatmate cannot assign the right to live in the flat

• If the head tenant receives notice from the landlord, the head tenant will give a copy of the notice to the flatmate

• This agreement can be terminated by 14 days' notice given by either party in writing

• At the end of this agreement, the head tenant will return the bond to the flatmate immediately. The head tenant can deduct from the bond any cost which is outstanding and is the responsibility of the flatmate

Compliance and Enforcement

Unlawful Acts

It is also an unlawful act for a landlord to fail to include all the necessary information in a tenancy agreement. This includes failing to provide required statements or including false or misleading information.

Penalties

Various penalties apply for non-compliance:

• Up to $500 for incomplete or false insulation statements • Up to $7,200 for failing to comply with smoke alarm requirements • Infringement offences for not providing written tenancy agreements

Monitoring and Enforcement

The Ministry of Business, Innovation and Employment (MBIE) has new powers to monitor and enforce compliance with the Residential Tenancies Act, including prosecuting landlords whose properties breach basic housing standards.

Learn more: Tenancy Law Changes

Frequently Asked Questions (FAQ)

General Questions About Tenancy Agreements

Q: Do I need a written tenancy agreement?

A: Yes, tenancy agreements must be in writing. The landlord must give the tenant a copy of the signed agreement before the tenancy starts. Not providing a written tenancy agreement is an unlawful act. However, even if there is no formal written agreement, the Residential Tenancies Act 1986 still applies.

Reference: Tenancy Agreements

Q: What if I don't understand something in the tenancy agreement?

A: Tenants should read the tenancy agreement carefully before they sign it, including all the terms and conditions. If there is anything they do not understand, they should seek advice before they sign. You can contact Tenancy Services on 0800 TENANCY (0800 836 262) for general guidance.

Q: Can I use an electronic signature on a tenancy agreement?

A: Yes, electronic signatures may be used to sign a tenancy agreement if both parties agree. They are as valid as a traditional written signature if certain requirements under the Contract and Commercial Law Act 2017 are met. Digital signatures using encryption are more secure than simple scanned signatures.

Questions About Bond

Q: How much bond can a landlord charge?

A: Landlords can charge up to 4 weeks' rent as bond. A bond is not compulsory, but if a landlord charges a bond for any tenancy, they must lodge it with Tenancy Services within 23 working days.

Reference: Charging a Bond

Q: What happens if the rent increases - can the landlord ask for more bond?

A: Yes, if the landlord increases the rent they may ask the tenant to pay additional bond in line with the increase. For example: if the tenant has paid a bond equivalent to 3 weeks' rent and weekly rent goes up by $10, the landlord can request an extra $30 to be paid to the bond. You can only request the extra bond payment for a current rent increase.

Q: Do I get my bond back at the end of the tenancy?

A: Tenants who have looked after the property, paid rent in full, and paid any amounts owing should get a refund of their bond when the tenancy ends. Both landlord and tenant need to complete and submit a bond refund form at the end of the tenancy.

Reference: Refunding a Bond

Questions About Rent

Q: How often can rent be increased?

A: Rent shall not be increased within 12 months of the start of the tenancy or the last rent increase. Landlords must give 60 days' written notice for rent increases. Also, for rent to be increased in a fixed-term tenancy, it must be stated in the tenancy agreement.

Reference: Rent Increases and Reductions

Q: Can a landlord require rent more than 2 weeks in advance?

A: No, landlords shall not require rent to be paid more than 2 weeks in advance, nor until rent already paid has been used up.

Q: Do I need a receipt for rent payments?

A: Yes, receipts must be given immediately if rent is paid in cash. It is important for both landlords and tenants to keep accurate receipts and records related to the tenancy.

Reference: Receipts and Records

Questions About Ending a Tenancy

Q: How much notice do I need to give to end a periodic tenancy?

A: For a periodic tenancy:

  • Landlords can end a periodic tenancy with 90 days' written notice without giving a reason (or 42 days' notice for specific reasons such as the owner needing the property to live in)
  • Tenants must generally give at least 21 days' notice

Reference: Ending a Periodic Tenancy

Q: Can I end a fixed-term tenancy early?

A: Generally, a landlord or tenant cannot give notice to end a fixed-term tenancy early. You can only give notice to end a fixed-term tenancy early if the landlord and tenant both agree. There are limited exceptions to this rule, including situations involving family violence.

Reference: Ending a Fixed-Term Tenancy Early

Q: What happens when a fixed-term tenancy ends?

A: Once the fixed-term ends, the fixed-term tenancy automatically becomes a periodic tenancy unless: During the period that starts on the 90th day before expiry and ends on the 21st day before expiry (the effective period), either party gives the other written notice that they do not intend for the tenancy to continue, or both tenant and landlord agree on an alternative arrangement.

Questions About Property Standards

Q: What are healthy homes standards?

A: Healthy homes standards are minimum standards that rental properties must meet. All rental properties must comply with the healthy homes standards. Landlords must include a signed healthy homes compliance statement with new or renewed tenancy agreements showing the property's current level of compliance.

Reference: Healthy Homes Information

Q: Does the property need to have insulation?

A: Yes, ceiling and underfloor insulation has been compulsory in all rental properties since 1 July 2019, unless an exemption applies. Landlords must provide an insulation statement in all new tenancy agreements detailing the location, type and condition of insulation.

Q: Are smoke alarms required?

A: Yes, smoke alarms are compulsory in all rental homes. Landlords must ensure there is at least one working smoke alarm in each bedroom or within three metres of each bedroom door, at least one on each storey or level, and at least one in any caravan, sleep-out or similar. Landlords who fail to comply may be liable for a penalty of up to $7,200.

Questions About Changes and Modifications

Q: Can I add my own conditions to the tenancy agreement?

A: Landlords cannot add any conditions they want to the tenancy agreement. Extra conditions must comply with the law. Any agreement that is inconsistent with the Residential Tenancies Act 1986 shall be of no effect unless the inconsistency is expressly permitted by the Act.

Reference: Adding Conditions to the Tenancy Agreement

Q: Can tenants make changes to the rental property?

A: Tenants can request in writing to make minor changes to the rental property under the Act. Landlords must not decline if the change is minor. Landlords can, however, set reasonable conditions. Tenants must get consent from the landlord before making changes to the property.

Q: What if my contact details change during the tenancy?

A: If your contact details change during the tenancy, you must give the other party your new contact details within 10 working days. If Tenancy Services holds a bond for the tenancy, you must also let them know the new details within 10 working days. Contact details include phone number, contact address, email address, and address for service.

Questions About Flatmates

Q: Are flatmates covered by the Residential Tenancies Act?

A: No, agreements between tenants (or homeowners) and their flatmates are not covered by the Residential Tenancies Act 1986. This means flatmates are not part of the tenancy agreement. However, there should be a written record of what has been agreed by all parties using a flat-sharing agreement.

Reference: Flat-Sharing Agreement Template

Questions About Property Managers

Q: What if I use a property manager?

A: If the property is managed by a property manager, write the names of both the owner and the property management company as landlord on the agreement. If the owner isn't on the agreement, the property manager takes on all the landlord's responsibilities and could be held responsible for any Tenancy Tribunal orders.

Questions About Disputes

Q: What if I have a dispute with my landlord or tenant?

A: The Tenancy Tribunal provides a quick and inexpensive way for tenants and landlords to resolve disputes. The Tribunal hears residential tenancy disputes involving claims up to $100,000. It offers mediation between the parties or a hearing by a Tenancy Adjudicator who makes a binding decision.

Reference: Disputes and Tribunal

Q: Where can I get more help?

A: You can contact Tenancy Services on 0800 TENANCY (0800 836 262) from 8:00am - 5:30pm, Monday to Friday. You can also visit the Tenancy Services website at www.tenancy.govt.nz for comprehensive information and guidance.

Reference: Contact Us

Conclusion

Tenancy agreements are fundamental legal documents that protect both landlords and tenants. Understanding the requirements under the Residential Tenancies Act 1986 is essential for compliance and successful tenancy relationships. Both parties should ensure they understand their rights and responsibilities as outlined in the agreement and seek advice when needed.

All information in this guide is based on official sources from Tenancy Services and New Zealand legislation. For the most current information and specific advice, parties should consult the official Tenancy Services website or seek legal advice.

Additional Resources

Official Websites

Key Legislation

Forms and Templates

Information Pages

Contact Information

 

Disclaimer: The information provided on this page is compiled from various sources. This content is designed to offer general guidance and educational material related to flatmate arrangements, rental properties, and related services. The information presented here should not serve as your sole resource for making housing or flatmate decisions. We strongly advise consulting with qualified legal professional(s) as your circumstances warrant.