Tenancy agreements explained for renters and landlords
Renting or renting out? Here’s what you need to know about the tenancy agreement
Renting a property comes with plenty of moving parts, but the tenancy agreement is where it all starts. It's a legally binding contract between a landlord and tenants that sets out the terms of the arrangement in writing, reducing the risk of disagreements and disputes.
If you’re a landlord, you’ll need to know what to include in your tenancy agreement. And if you’re a tenant-to-be, you’ll need to know what to expect and where to ask questions.
In this guide, we’ll cover what a tenancy agreement requires, what each type means, your rights and responsibilities, and how to navigate disputes.
What is a residential tenancy agreement?
In New Zealand, most rental properties require a house rental lease agreement that sets out all terms and conditions of the rental arrangement.
What are the different types of tenancy agreements?
There are two main types of tenancy agreements in New Zealand: fixed and periodic tenancies.
Fixed-term tenancies have a specific start and end date. They can’t be ended early, unless both parties agree. Fixed-term tenant contracts automatically convert to periodic at the end of the term.
Periodic tenancies have a start date, but no fixed end date. Periodic leases continue until proper notice is given. Tenants typically must give 21 days' notice, while landlords usually must give at least 90 days’ notice (or 42 days, depending on the reason).
What should be included in a tenancy agreement
Under the Residential Tenancies Act, a standard tenancy agreement should include the following information:
Legal names and contact details of the landlord and the tenant: contact addresses, email, mobile phone numbers if known
Tenancy period: if fixed-term, both start and end dates
Address for service of both parties: physical or electronic address where any official documents will be sent
Rent payment details: bond, regular rent amount, rent frequency, and payment location or bank account number
Healthy Homes Standards compliance statement
Tenancy Services insurance statement
Insulation statement
Extra conditions to your residential house lease agreement
Landlords can add additional conditions to the agreement, such as “no smoking” or “no pets”. The tenant should agree to these before signing; any changes after signing need the tenant's consent. Extra conditions shouldn’t contradict the protections put forth by the Residential Tenancies Act.
Where to get a tenancy agreement form in NZ
Most landlords will use a templated tenancy agreement form; the NZ government’s Tenancy Services provides a free residential tenancy agreement builder. Landlords can also write their own tenancy agreement, so long as it has the minimum information required by the Residential Tenancies Act.
Rights and responsibilities for landlords and tenants
Once the agreement is signed, both parties take on legal obligations under the Residential Tenancies Act.
Landlord rights and responsibilities
The landlord should handle almost all matters related to the form itself, including preparing the correct form, covering all preparation costs, and providing a copy to the tenant before they sign.
Once the agreement is signed, the landlord must ensure the home is a habitable property that meets the Healthy Homes Standards. The standards include guidelines for heating, insulation, ventilation, moisture ingress, and drainage.
Additionally, they must ensure that there are no legal problems that will prevent the tenant from living on the property during their tenancy.
Tenant rights and responsibilities
The tenant’s key responsibility is to read their tenancy agreement in full and ask any questions if necessary. The tenant’s rights under the Residential Tenancies Act can't be signed away; any clause in the agreement that contradicts the Act is unenforceable.
Essential steps before signing
Before signing the tenancy agreement contract, both parties should go through the property to complete a detailed condition report, documenting the condition of the property with photos and videos. Note all chattels included, such as appliances like ovens, dishwashers, heat pumps, and any furniture.
Tenants should read the entire residential property lease agreement carefully and ask questions if anything is unclear. Make sure all key information and payment terms are included. If there have been any verbal agreements during the rental application or otherwise, ensure those are all included as formal agreements in writing.
Having any doubts? Ask for legal or professional advice if necessary. Don’t forget to keep signed copies, bond lodgement forms, and inspection reports somewhere safe.
Having a dispute?
A written tenancy agreement is designed to minimise the risk of disputes, but disagreements can still happen. For instance, the tenancy agreement might have unclear terms, the tenant may miss payments, or there may be undocumented verbal agreements later broken.
Open, clear communication should always be the first step when there is a disagreement; you can often resolve issues before they escalate into disputes. If you can’t reach an agreement, you can:
Apply to the Tenancy Tribunal for binding dispute resolution
Frequently asked questions
Why is a tenancy agreement important?
A tenancy agreement puts the terms of a rental arrangement in writing, so both parties know exactly where they stand. It's the first line of defence if a dispute arises over rent, property condition, or notice periods.
Are tenancy agreements legally binding?
Yes. A signed tenancy agreement is a legally binding contract. Even if no written agreement exists, the landlord and tenant are still bound by the Residential Tenancies Act.
How long are tenancy agreements?
Fixed-term tenancies run for a set period (commonly six or twelve months) after which they convert to periodic tenancies. Periodic tenancies have no fixed end date and continue until one party gives the correct written notice to end them.
Who writes a tenancy agreement?
In New Zealand, the landlord is responsible for preparing the rental tenancy agreement. This includes using the correct form and covering any costs involved in preparing it. If the landlord uses a property management company, the property manager typically handles this on their behalf.
Can I write my own tenancy agreement in NZ?
Yes. Landlords can write their own tenancy agreement, as long as it includes all the information required under the Residential Tenancies Act.
Do tenancy agreements need to be registered?
No. In New Zealand, signed agreements don't need to be registered with any government body. However, the bond must be lodged with Tenancy Services within 23 working days of being received by the landlord.
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Understanding your tenancy agreement prevents disputes and protects your rights. Take the time to thoroughly review your home rental agreement, and always ask for professional advice if unsure; a well-understood agreement leads to a smoother relationship overall.