Legal rights

Landlords and tenants

Updated 01 Apr 2010
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Introduction

Landlord or tenant, make sure you know your rights.

The rights and responsibilities of landlords and tenants are spelt out in the Residential Tenancies Act 1986 and subsequent amendments.

The Act was amended from 1 October 2010. If in doubt get advice from Tenancy Services - call 0800 TENANCY (0800 83 62 62).

The tenancy agreement

A tenancy agreement is a form of contract, agreed to between a landlord and a tenant, which outlines the particular conditions of a tenancy. Both the landlord and tenant must sign the agreement and the landlord must ensure that the tenant receives a copy before the tenancy begins.

Among other things, the agreement must specify the names of the parties involved, the bond, a list of chattels, the date the tenancy will start and end (if it has a fixed term) and a street address for the landlord.

An excellent standard form is available from stationery outlets such as Whitcoulls and Warehouse Stationery.

Types of tenancy

There are three different types of tenancy.

A fixed-term tenancy runs for a period of time set out in the tenancy agreement. Neither the tenant nor the landlord may end the tenancy before the term is up.

This means if you agree to rent a property for one year but after six months decide to go overseas, you will continue to be responsible for the rent. However, if the landlord agrees to another tenant and a new tenancy agreement is signed your responsibility ends.

In exceptional circumstances, you can also apply to the Tenancy Tribunal for termination of tenancy. The tribunal will decide whose hardship would be greater - yours, if tenancy were to continue, or the landlord's, if it ends. It will rule accordingly, and can order compensation to be paid.

A periodic tenancy continues until either the landlord or tenant brings it to an end by giving notice. There's a correct way to do this. Periodic tenancies are probably the most common form of tenancy.

A service tenancy occurs where an employer provides accommodation for an employee.

Service tenancies are covered by the Residential Tenancies Act but have special rules relating to rent paid in advance and notices to quit.

We suggest you get more details from the Department of Building & Housing if you are about to enter a service tenancy.

More help

If you are a landlord: www.dbh.govt.nz/landlords-index

If you are a tenant or thinking of becoming one: www.dbh.govt.nz/tenants-index

If you are going flatting for the first time Flatting 101 is just for you: www.dbh.govt.nz/flatting-101

Rent and other charges

Rent

Can my landlord ask for rent in advance?
Yes. A landlord can ask for up to two weeks' rent in advance but only one week's rent in advance if rent is to be paid weekly.

Can I insist on a receipt for my rent payments?
You are entitled to a receipt if you pay by cash. If you pay by cheque, automatic payment or direct debit, the landlord does not have to provide a receipt. In practice, you won't need one, as your bank will be able to provide a record of your rent payments.

How often can my landlord increase my rent?
Rent increases cannot be less than six months apart and can only be made after the landlord has provided 60 days' notice.

Is there a maximum rent a landlord can charge?
No, levels vary according to demand and there are no restrictions on the amount by which rent may be increased.

If you think your rent is too high, check the rents charged for properties similar to yours advertised in the paper or with real estate agents, or check the Tenancy Services website.

If you are satisfied your rent is out of line with the market you can ask the Tenancy Tribunal for a market rent assessment. The tribunal will assess "what a willing landlord could expect to receive, and a willing tenant expect to pay for the tenancy, in comparison with rent levels in similar areas".

If the landlord is asking substantially more than this, the tribunal can make an order fixing the rent, usually for a period of six months.

Bond

A landlord can ask for up to four weeks' rent as bond. This must be lodged with the Department of Building & Housing Bond Centre in Porirua, within 23 working days of the bond being paid.

A bond lodgement form is available from the Department of Building & Housing or can be downloaded from their website. The standard tenancy agreement is usually sold with a bond lodgement form attached.

When the tenancy comes to an end, and there's been no damage to the property, unpaid rent or other dispute, both parties sign a bond refund form and the bond is refunded.

If you wish, it can be transferred to a new tenancy. For this to happen, a bond transfer form, also available from the Department of Building & Housing, should be signed by you and both your new and old landlords. The new landlord should then send it to the Bond Centre.

For inquiries regarding tenancy bonds, call the Tenancy Bond Centre: 0800 737 666

Other charges

Your landlord can also ask for real estate agent's fees and/or solicitor's fees charged for setting up the tenancy.

Option money
A landlord may ask for "option money": no more than one week's rent in advance as a deposit for holding a house or flat. It must be refunded or put towards your rent if you take up the tenancy.

Of course, if you decide you don't want the flat, the landlord may keep the money.

Can landlords ask for "key money"?
"Key money" is money demanded by the landlord for giving you the tenancy (excluding rent, bond or an agent's or solicitor's fees).

It's illegal. A landlord cannot ask for $100 before supplying the key to the house or for a $50 deposit on a washing machine or money for anything else supplied with the tenancy.

Gas, electricity and phone
The landlord should provide the facilities for at least electricity and phone connection. Gas may also be set up. However, it's the tenants' responsibility to arrange for these to be connected. If you think your newly rented house has been empty for a while, take a reading of the electricity and gas meter on the day you move in. You are only responsible for the power and gas that you use.

Conditions of tenancy

Discrimination

A landlord cannot discriminate because you are pregnant or of a particular sex, ethnic background, national origin, religion, marital status, age, or because you are unemployed or have children.

If you believe you are being discriminated against you can complain to the Tenancy Tribunal or the Human Rights Commission.

Rights of inspection

Landlords have the right to inspect their properties, but you also have a right to reasonable privacy in your own home.

The landlord must give you at least 48 hours' notice and not more than 14 days' notice of a visit. Inspections cannot be made more than once a month and must be made between the hours of 8am and 7pm.

If the landlord wishes to enter the property to make repairs they must give you at least 24 hours' notice, unless there is an emergency.

Of course, a landlord can visit at any time but can only come in if you invite them.

Urgent repairs

The toilet is blocked, you can't clear it with a plunger and the landlord can't be contacted. What should you do?

For urgent repairs in this situation, you can contract a tradesperson yourself and pass on the costs to the landlord. But you must keep those costs reasonable.

Termination of tenancy

Where there is no fixed term, tenants must give 21 days' written notice, unless the landlord agrees to allow a shorter time. Even if the landlord says it is not needed, it is a good idea to put the notice in writing and keep a copy of it.

The landlord, on the other hand, must give at least 90 days' notice in writing of their intention to end the tenancy. But if they or members of their family wish to move in, or if the property has been sold, they only have to give 42 days' notice.

The landlord can show prospective tenants through the property, even if you are still living there, provided they have given notice and first obtained your consent for the visits. You cannot unreasonably withhold your consent, but may set reasonable conditions before agreeing to let them into the house.

Resolving disputes

If you have a dispute with your landlord that cannot be resolved, you can lodge an application with the Tenancy Tribunal. It costs $20.

After this is done the matter will usually be referred to mediation. If the matter remains unresolved, the tribunal can hold a formal hearing to resolve the dispute.

More help

The Tenancy section of the Department of Building and Housing provides advice to help tenants and landlords. It can advise you of your rights and obligations and help resolve problems. There are many offices located throughout the country.

For inquiries regarding tenancy bonds, call the Service Centre: 0800 737 666.

For renting advice and information: 0800 836 262.

More help