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The Return of No-Cause Terminations: A Step Toward Balance in Tenancy Law

by Tenancy.co.nz managing director Craeg Williams

The removal of no-cause terminations under the 2020 amendments to the RTA introduced significant uncertainty and challenges for landlords and property managers. Among these, proving tenant anti-social behavior emerged as one of the most problematic issues.


The so-called “three strikes rule” required landlords or property managers to provide evidence of three separate incidents of anti-social behavior before filing a claim to terminate a tenancy. While well-intentioned and this still part of the RTA, this requirement has proved impractical. Neighbours and witnesses, often the only sources of evidence, were understandably reluctant to come forward, fearing retaliation.


This fear of retribution inadvertently shielded problematic tenants, including gang members and others who employed intimidation tactics to silence their neighbors. Ironically, anti-social behavior became both the issue landlords were trying to resolve and the very tool tenants used to obstruct the process.


One illustrative case involved a woman who successfully passed the vetting process and secured a tenancy. However, once she moved in, the situation quickly deteriorated. Neighbors reported that two gang members were frequently at the property, hosting loud parties late into the night and intimidating those nearby. When confronted, the tenant dismissed the concerns, claiming her boyfriend only visited occasionally and denying the reports of disruptive behaviour.


Despite mounting complaints, none of the neighbours were willing to provide formal statements. The property manager’s frustration grew as further issues came to light, including reports from a contractor about mattresses set up in the garage and lounge – clear signs of unauthorised occupants. Yet, during inspections, these were conveniently removed, making it nearly impossible to gather concrete evidence. It became a futile game of cat and mouse, leaving the property manager powerless to act. 


Scenarios like this played out across New Zealand, exposing a flaw in the legislation. While the 2020 amendments aimed to create a more equitable renting environment, they often overlooked the rights of neighboring tenants to enjoy peace and security in their homes. This imbalance placed significant stress on landlords, property managers, and compliant tenants.


The reintroduction of no-cause terminations offers a much-needed correction. The government highlights how this change will boost rental supply and encourage landlords to give marginal tenants a second chance – a perspective we fully support.


It also restores a vital tool for property managers to address anti-social behavior that disrupts communities but falls short of meeting the stringent evidence requirements under current rules.

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