Parliament has announced changes to the Residential Tenancies Act (Act), some of which have officially taken effect. The changes apply to current residential tenancy agreements, regardless of when they were signed. Creating changes for both landlords and tenants, the Government has stated that the aim of the amendments is to give landlords confidence to re-enter the property market alongside tenants who feel less anxious about their ability to secure a home.
One of the biggest changes is that the 90-day notice ‘no cause’ terminations for periodic tenancies has been reintroduced. Landlords now have the ability to give tenants a 90-day notice period for ending the tenancy, without providing any reason. This is a significant reversal from the previous Labour-led changes to the Act. The Government has explained that this change is designed to give landlords increased confidence to take on tenants who may usually be turned away.
A second change to notice periods means that landlords can end a tenancy with 42 days’ notice if the owner requires the property as a primary residence, for themselves or one of their family members within 90 days of the tenancy ending and will remain living in the home for at least 90 days. This 42-day notice period also now applies where there is an unconditional agreement for the sale of the property that requires vacant possession.
For fixed‑term tenancies expiring on or after 1 May 2025 (and signed on or after 11 February 2021), tenants or landlords can now choose not to renew at expiry by giving written notice between 90 and 21 days before the end date. No specific reason is required for this action. If no notice is given and there’s no other agreement, the tenancy automatically converts to a periodic tenancy.
The notice period now required to end a periodic tenancy by tenants has been shortened from 28 days to 21 days, allowing for more flexibility in situations where a tenant’s circumstances changes.
The changes to the Act also clarify that:
- Landlords can prohibit smoking inside the rental property.
- A tenant’s children or dependents are covered by the provision allowing a tenant to leave a tenancy at short notice due to family violence while at the premises.
- Parties to a tenancy can give documents and notices to an electronic address if it has been provided as an address for service in the tenancy agreement (which includes a mobile telephone number or instant messaging).
There are also some changes which have not yet taken effect. The introduction of ‘pet bonds’ will allow landlords to charge an increased bond if the tenant has a pet. An official date for this change is yet to be decided.
