The RTA Amendment Bill 2024 passed its third reading last night with a notable change that provides much-needed certainty.
The government voted to amend the Bill to lock in clear commencement dates.
Starting January 30, 2025, termination changes under the Bill will officially come into force.
This includes the reintroduction of no-cause terminations, 42-day notices, and the ability for landlords to end a fixed-term tenancy without providing a reason, ensuring it doesn’t automatically roll into a periodic agreement.
“It gives everybody certainty. From officials, landlords, and tenants, a clear date and expectation to work towards,” Housing Minister Chris Bishop said, highlighting the practical benefits of the changes.
New Protocols to Navigate
However, the new rules aren’t without their twists. Property managers and landlords will need to familiarise themselves with fresh protocols, such as updated procedures for giving notice when a property is sold or marketed and increased tenant powers when applying for retaliatory notices. These “fishhooks” will become major talking point in 2025 and beyond.
Beyond Terminations: Pets, Smoking, and Family Violence
The government also confirmed that additional provisions – excluding those concerning pets – will come into effect on March 20, 2025.
Among these, the much talked about pet bond changes stand out. While not immediately enforceable, the pet-related rules, including a new bond system, are poised to take effect later in 2025 after an order from the council.
Adding to the mix, the Bill introduces new regulations around smoking in rental properties and new significant measures addressing family violence.
“This is a suite of pro-tenant and pro-landlord changes that encourage landlords to enter the market and give tenants more security to secure a rental home, including for their furry family members,” Bishop said, framing the Bill as a balanced reform package.
In the House
As expected, National, ACT, and New Zealand First threw their weight behind the Bill, delivering 68 votes in favour. On the flip side, Labour, the Green Party, and Te Pāti Māori opposed the legislation, garnering 55 votes against it.
Now, the Bill awaits Royal Assent to officially become law. With its passing, New Zealand’s rental landscape is poised for a significant shakeup, and education will become key for property managers as the new year looms.
