Review of the Residential Tenancies Act 1986
The Residential Tenancies Act (RTA) sets out the rights and obligations of people who rent their homes and of the people they rent from. The Act covers aspects such as payment of rent, bonds, property repairs and giving notice.
New Zealand has changed significantly since 1986 – from the technology we use, to the cars we drive, the way we live and our view of our place in the world.
People are renting for longer, and the demographics of renters have changed over time. This led to a review of the RTA so it continues to work well both now and in the future.
The review includes providing a good balance between the needs of tenants for a decent home, and the needs of landlords to effectively manage their rental properties.
Review update – October 2009
On 25 September 2009 the Social Services Committee tabled its report on the Residential Tenancies Amendment Bill. You can read the Committee’s report here.
Before becoming law the Bill must pass through several further parliamentary stages, including consideration by Committee of the Whole House, and receive Royal Assent. For more information about these stages, visit the Parliament website.
Review update – May 2009
On 13 May 2009 the Minister of Housing, Hon Phil Heatley, introduced a new Residential Tenancies Amendment Bill into Parliament. You can read the Minister’s announcement here.
Key provisions of the new Bill will:
- extend the Act (including access to advice, information and dispute resolution services) to more people involved in renting, such as tenants in boarding houses
- clarify responsibility for outgoings by introducing overarching principles to indicate when landlords or tenants are responsible for charges such as water or rates
- introduce clearer and fairer processes for terminating and renewing tenancies to provide an appropriate balance between flexibility and certainty of tenure
- encourage landlords and tenants to comply with their obligations under the Act by increasing the value of existing fines and exemplary damages and introducing new sanctions
- provide for most tenancy disputes to be resolved quickly, fairly and cost effectively
- improve the enforceability of Tribunal orders.
Before becoming law, the new Bill will need to pass through several parliamentary stages, including consideration by a select committee. Select committees usually invite public submissions on bills by placing advertisements in newspapers and on Parliament’s website. You can access a copy of the new Bill and track its progress here.
Review update – February 2009
In response to feedback from stakeholders and developments in case law, the Minister of Housing has requested the Residential Tenancies Amendment Bill (No 2) be withdrawn from Parliament’s legislative programme, with a view to introducing a revised bill in the middle of the year.
The withdrawal of the Bill provides an opportunity to revisit contentious aspects of the Bill, better understand their impact on landlords and tenants and test alternative approaches with key stakeholders. It also provides an opportunity to develop policy responses to developments in case law for possible inclusion in a revised bill.
The Minister is conscious of the high level of interest in the Bill and is keen to introduce a revised bill as soon as possible. Consequently, he has limited the scope of the review of the Bill to several key issues and asked that consultation be tightly targeted and limited to key stakeholder organisations. The key issues are:
- liability for damage to the premises
- charging of letting fees
- use of experienced advocates
- the status of a tenancy when a sole tenant dies
- assaults committed by tenants’ guests
Once the Bill has been amended, and a revised bill has been introduced into Parliament, the parliamentary select committee process will provide an opportunity for both key stakeholders and the general public to have their say on the entire content of the bill and recommend any further changes. Read the Minister's announcement
Review Update – May 2008
On 29 May 2008 the Minister for Building and Construction introduced the Residential Tenancies Amendment Bill (No 2) into Parliament. The Bill is based on policy decisions made by Cabinet in 2006 and 2007. Read the Minister's announcement
The purpose of the Bill is to:
- encourage the development of a rental market that provides stable, quality housing to those who rent their homes
- enable landlords to manage their properties more effectively
- clarify and appropriately balance tenant and landlord rights and obligations.
The key provisions in the Bill:
- extend the protection of the Residential Tenancies Act to boarding houses
- limit a tenant's liability for damage
- clarify responsibility for outgoings
- introduce clearer and fairer processes for terminating and renewing tenancies
- encourage landlords and tenants to complywith their obligation
- provide for the majority of tenancy disputes to be resolved quickly, fairly and cost effectively
- improve the enforceability of Tenancy tribunal orders
- prohibit tenants being charged letting fees.
Please continue for a summary of the benefits of the proposals so far »
You can download a copy of the Bill and track it's progress on Parliament's website Alternatively you can obtain a hard copy from Bennetts bookstores or Legislation Direct at www.legislationdirect.co.nz
Next steps
The next step is for the Bill to receive its first reading debate in Parliament. The timing of the first reading debate depends on whether there is enough time in Parliament's sitting programme. If the Bill passes its first reading it will be sent to a select committee for consideration. The select committee will usually invite public submissions by advertising in major daily newspapers and on Parliament's website
Find out more
Earlier public consultation
Between November 2004 and February 2005 we asked landlords, tenants, property managers and other people with an interest in rental housing to come along to public meetings on the review and to make written submissions.
The public consultation period was supported by a discussion document, Getting the Balance Right that set out what we saw as the key themes and issues around the RTA. The document was produced in a long form and a short form.
Although the submission period has now closed, you can still print a copy of the long or short document:
Summary of submissions
We received written submissions from nearly 600 people, and more than 350 people attended public meetings. You can find out what people had to say by viewing the following documents:
Thank you to everyone who came to a meeting or sent us a written submission. Your comments and suggestions are providing valuable input to the next stage of the review.