Tenancy agreement
Before a tenant moves in, the landlord and tenant need to complete a tenancy agreement, which sets out the key things the landlord and tenant agree to do.
Under the Residential Tenancies Act, all tenancies entered into after 1 December 1996 must have a written tenancy agreement, which must include the following.
- The names and contact addresses of the landlord and tenant.
- The address of the property.
- The date the tenancy agreement is signed.
- The date the tenancy is to begin.
- Addresses for service for both the landlord and the tenant.
- Whether the tenant is under the age of 18.
- The rent amount and frequency of payments.
- The amount of any bond.
- The place or bank account number where the rent is to be paid.
- Any fees (real estate or solicitor’s) to be paid (if applicable).
- A statement (if applicable) that the tenant is to pay for metered water.
- A list of any chattels (like furniture, curtains and other fittings) provided by the landlord.
- The type of tenancy and the date the tenancy will end if it is a fixed-term tenancy.
Both the landlord and tenant must sign the agreement, and the landlord must give the tenant a copy before the tenancy begins.
Get a copy of the tenancy agreement
The tenancy agreement includes a property inspection report, as well as a summary of the Residential Tenancies Act.
Some questions and answers about tenancy agreements
Can other conditions be included in the tenancy agreement?
Other things may be included that are specific to the particular tenancy, for example:
- how many people are allowed to live in the house or flat
- whether the tenants may sublet or assign (transfer) the tenancy to anyone else (but this does not prohibit the tenant from having flatmates or boarders)
- where cars may be parked
- who is responsible for water charges in certain situations.
However, if something has been written down as a provision of a tenancy agreement but it is inconsistent with what the law says, it has no effect. A landlord cannot enforce what is outside the law and tenants cannot give away any of their rights. For example, even if the tenancy agreement says the tenant must leave on a month’s notice, the tenant is still entitled to 90 or 42 days’ notice, whichever is applicable under the Residential Tenancies Act.
What is an address for service?
A physical street address where official notices will be accepted by, or on behalf of the person concerned. It is an address where you can be sent mail about the tenancy at any time, even after the renting relationship has finished. It is a good idea to get an address for service for your tenant that is not the address of the rental property – perhaps a relative’s or a next of kin’s.
A post office box number is not adequate as an address for service, because legal documents cannot be served on a post office box. (This is especially important where an application to the Tenancy Tribunal has been made.) For an address to be a legal address for service, it must be in writing and stated as being an address for service.
If this address changes then it is very important that the other party (that is, the landlord or the tenant) is informed. If you have paid/lodged a bond, then it is important to inform the Department of Building and Housing as well.
Are there different types of tenancies?
There are two main kinds of tenancies – periodic and fixed-term. A third, less common type, is a service tenancy. When deciding what sort of tenancy will best suit your needs, both landlord and tenant should be aware of what their obligations are under the tenancy.
What is a periodic tenancy?
Any tenancy that is not for a specific term. This is the most common form of tenancy. It continues until the landlord or tenant gives the correct notice to end it.
What is a fixed-term tenancy?
This finishes on a specific date set down in the written tenancy agreement. There is no provision for either the landlord or the tenant to give notice to quit.
If a landlord plans to go overseas for a year and arranges a fixed-term tenancy, and then finds circumstances have changed and they have to come home early, they may be unable to move back into their home until the end of the fixed term. If tenants have a fixed-term tenancy and their situation changes so they are unable to stay in that property, they may remain responsible for the tenancy and the rent payments until the landlord is able to find suitable replacement tenants, or until the end date of the tenancy.
If unexpected circumstances mean a landlord or tenant wishes to end a fixed-term tenancy early, then they may apply to the Tenancy Tribunal to end the tenancy. The Tenancy Tribunal may shorten the tenancy if there has been an unforeseen change in the applicant’s circumstances and if the hardship caused to the applicant by the tenancy continuing would be greater than the hardship caused to the other person by the tenancy ending. The Tribunal can also order compensation to be paid.
Fixed-term tenancies are fully covered by the Residential Tenancies Act, with some small exceptions.
- If the parties agree to a tenancy that is 120 days or less (and it will not be renewed or extended) this is considered a short fixed-term tenancy. The rules relating to market rent and notice to quit do not apply to short fixed-term tenancies. All other provisions of the Residential Tenancies Act 1986 apply.
- Tenancy agreements for fixed-term tenancies of 5 years or more will not be subject to the Residential Tenancies Act 1986 as long as this is clearly stated in the tenancy agreement.
Note: If the landlord permits the tenant to remain in a property after the fixed-term period ends, a 90 day limbo period applies. This means a tenant can move out or be asked to leave without notice.
If the tenant remains in the property after the 90 day limbo period has passed the notice periods of a periodic tenancy apply. The tenant is required to give 21 days notice before moving out.
What is a service tenancy?
This is where an employer provides an employee with a property to live in during their period of employment. Service tenancies are fully covered by the Residential Tenancies Act, but have special rules covering rent paid in advance and notice to quit the tenancy. (We recommend you seek advice from us if you are contemplating a service tenancy.)
In a service tenancy, the tenancy usually ends when the employment ends, and the employer has given 2 weeks’ notice to quit the house. If an employer rents a property to a non-employee that is usually used for housing an employee, and the tenancy agreement says the property may be needed for an employee on 42 days’ notice, then, when the property is needed for that purpose, 42 days’ notice can be given.
Where a landlord is also the tenant’s employer and takes the rent out of the tenant’s pay, they can also take rent out of any holiday pay to cover the holiday period.
Who is responsible for water charges?
A tenant is responsible for water charges if the:
- house or flat has a separate water meter, and
- tenant’s written tenancy agreement states that, at the start of the tenancy, the tenant will pay for metered water provided to the tenancy, and
- water supplier charges for water provided to the premises on a metered basis.
All three of the above conditions must be met for the tenant to be charged for water provided to the tenancy. A tenant won’t be responsible for water charges if the tenant agrees with the landlord, in writing, that the landlord will pay them, or there is no reference to payment of water charges in the tenancy agreement.
Download our information sheet Water charges – who pays? , which describes who is responsible for paying water charges in which situations.