On the 11th February, 2021 changes to Residential Tenancies Act came into effect.
Some of the changes are as follows:
- Fixed term tenancies automatically convert to periodic tenancy at their end;
- Assignment of tenancies;
- The tenant can make minor changes to the property;
- Prohibitions on rental bids;
- Timeframes and the reason for ending a periodic tenancy have been varied; and
- Enforcement measures being strengthened.
Fixed Term Tenancies Automatically Convert To Periodic Tenancies
If a fixed term tenancy is signed after 11th February 2021, the tenancy automatically becomes a periodic tenancy at the end of the fixed term unless, one of the following occurs:
The landlord and tenant agree to end the tenancy, extend it or renew it;
- The tenant gives notice to end the tenancy at least 28 days prior to the fixed term ending; or
- The landlord gives notice ending the tenancy using one of the reasons that allow them to cancel a periodic tenancy under the Act.
Assignment of Tenancy
If a tenancy is entered into after the 11th of February, then it is unlawful to have a provision in the lease that prevents the tenant from assigning the lease to another person.
If the tenant wishes to assign the lease, then prior to assigning the lease they must make a written request to the landlord. It is an unlawful act for the tenant to assign the lease without prior consent and the tenant may have to pay penalties.
The landlord must consider the request and respond in writing within a reasonable period. If the landlord does not then this is an unlawful act, and the landlord may have to pay penalties.
Tenant Can Make Minor Changes To The Property
Tenants can now make minor changes to a property with the landlord’s prior written consent. The consent needs to be obtained 21 days before the changes are made.
Minor changes are defined as changes that:
- are at low risk of causing damage to the property;
- can easily be reversed;
- do not require regulatory consent and do not breach statutory rules; and
- do not compromise the structural integrity, weather tightness or character of the property.
Some examples of minor changes are baby-proofing, installing curtains and earthquake-proofing which includes securing bookshelves etc to walls.
The cost of the changes is the tenant’s responsibility, and the tenant must remove the changes at the end of the tenancy.
A landlord cannot refuse a minor change request but can impose reasonable conditions in relation to the change.
Prohibitions On Rental Bids
Landlords cannot advertise a property for rent without advertising a rental price and cannot encourage prospective tenants to enter bidding wars for the property. However, a landlord can accept more than the listed rent from a prospective tenant, but only if the prospective tenant freely offers to pay a higher amount than the listing price.
