The Definitive Guide to Renting in New Zealand

We explain the right and obligations of tenants, landlords and what happens if something goes wrong

Updated 4 December 2019

Summary

• This is a complete guide to renting. It outlines the main rights and obligations of tenants and landlords, and what can be done when those rights and obligations have been breached.
• When you rent a home as a tenant or a landlord, you have some legal rights and obligations, mostly found in the Residential Tenancies Act 1986.
• Throughout the guide, there are various hyperlinks to the Tenancy Services website, which serves as a handy resource for further tenancy questions. Our guide is designed to answer common concerns and give clarity on issues you may have.
• For free tenancy advice, you can contact your local Community Law Centre or call Tenancy Services: 0800 836 262

This guide covers:

1. Understanding The Residential Tenancies Act
2. Residential Tenancy Agreement FAQs
3. The Costs Involved in a Tenancy: Rent, Bonds and Other Expenses
4. ​Rights and Obligations of Tenants and Landlords
5. Landlord Responsibilities
6. How to End a Tenancy
7. Disputes Between Tenants and Landlords - 5 Things to Know about the Tenancy Tribunal
8. Other Tenancy Issues - Subletting and Boarding

​Know this First - Essential Terms and Definitions
 
Your rights as a tenant (or landlord) are given under the Residential Tenancies Act. To make sure you're familiar with the most important points, we've listed some important tenancy terms and explain what they mean.

1. "Tenancy" For the purposes of this guide, a tenancy means that you’re renting a place for a residential purpose. “Residential” means that you’re renting the property for the main purpose of it being your home – not for your business.   

2. Tenancy Agreement A tenancy agreement, also commonly known as a ‘lease’, is a contract between the landlord and the tenant(s).

• It must be in writing and signed by both the landlord and the tenants.
  
• The landlord must also provide tenants with a copy of the agreement.
  
• There are two types of tenancy agreements: a periodic agreement and a fixed-term agreement. There are different conditions for ending each agreement, which are described in “How to End a Tenancy”.
  
• Periodic Tenancy: a periodic tenancy (also called an “indefinite tenancy”) is one with no stipulated fixed end date. For example, it rolls over monthly and either party can give notice. 
  
• Fixed-Term Tenancy: a fixed-term tenancy lasts for a set amount of time and has an end date recorded in the agreement. For example, 'a 12-month lease' means you can live in the property for 12 months.
  

3. Tenant

• A “tenant” is a person who rents the house. To be a tenant, the person must have signed the tenancy agreement.
  
• Tenants are different from flatmates and have different rights, responsibilities and obligations under the Residential Tenancies Act. We discuss Flatmates in 5. below. 
  

4. Landlord

• A landlord is someone that is renting out a property.
  
• They don’t necessarily have to be a person – they can be a private company, a local council, a trust or a governmental organisation like Housing New Zealand.
  
• Landlords might appoint an agent, which a tenant must deal with. An agent can be someone who works for the landlord or a property management company. This is common for rentals in major cities - in Auckland, for example, you'll likely see Real Estate agents representing landlords. Agents, however, do not have the powers of landlords.
  

5. Flatmate

• A ‘flatmate’ is the term commonly used to describe someone who lives in a property and shares the rent with a tenant but is not on the Tenancy Agreement (though, it should be noted, that it’s not a ‘legal term’).
  
• Because they’re not listed on the Tenancy Agreement, flatmates are responsible to the tenant – not the landlord.
  
• Flatmates aren’t protected by the Residential Tenancies Act, so their rights depend upon the relationship – or agreement – they have with the tenant.
  

6. Tenancy Tribunal

• The Tenancy Tribunal is the court which deals with disputes between tenants and landlords (which are usually breaches of the Residential Tenancies Act). If a dispute arises, this is the authority which will hear your case.

Understanding The Residential Tenancies Act

In this section, we explain what the Residential Tenancies Act is and who it applies to.
 
What’s the Residential Tenancies Act?

• The Residential Tenancies Act covers the relationship between landlords and tenants, along with providing a system for helping resolve disputes.
  
• However, the Act doesn’t protect all living arrangements. For example, it doesn’t protect people who:

1. Use the property for a commercial purpose (like farming or running a business); or
2. Live with the owner or with the tenant as a flatmate;

 
The Act also doesn’t cover:

1. Properties which are designed to provide temporary or transient accommodation like hotels (though staying over four weeks in a boarding house is covered);
2. Student accommodation and other forms of training-based accommodation (barracks, Halls of Residence, some clubs);
3. Retirement villages, rest homes and hospitals; and,
4. Holiday homes.
   
5. For a complete list of situations which aren’t covered by the Act, look to the Residential Tenancies Act, section 5.
   
6. However, even if the situation is not covered by the Act, the landlord and the tenant can still agree that the Act will cover their arrangement.

 
Important: If there has been any breach of the Residential Tenancies Act, the aggrieved landlord or tenant can be taken to the Tenancy Tribunal. We look at what constitutes a breach below (LINK). 

Before the Tenancy 
This section covers the application process before the tenancy officially begins.
 
How do people apply for rentals?
It is common practice for landlords to ask potential tenants to complete a pre-tenancy application form. These forms usually ask tenants for their contact information, their rental history, and for some references. Application forms can also ask for tenants to complete a credit check.
 
A template pre-tenancy application form can be downloaded from tenancy services.
 
What’s “Discrimination”?
It is unlawful for landlords to discriminate against potential tenants during the application process (or against any tenants at any stage during the tenancy). For example, a landlord cannot turn down a tenant because of their gender, sexual orientation, or religion.  
 
If landlords do discriminate against tenants, they can be taken to the Tenancy Tribunal or the Human Rights Commission.
 
In sum, a landlord can’t choose tenants based upon their:

1. Gender or sexual orientation;
2. Their age;
3. Their ethnicity, race, colour, nationality or origin of citizenship;
4. Physical or mental disability or illness;
5. Their religion, ethical beliefs, or political opinion; or
6. Their employment status (eg, if they are unemployed or on a benefit), their marital and family status, even if they have dependents. 

Explaining Tenancy Agreements

In this section, we outline the essential elements of a tenancy agreement; what needs to be included, what can be included, and what can’t be included. In essence, the Residential Tenancies Act covers every rental arrangement between a tenant and landlord.
 
What’s a tenancy agreement?

• A tenancy agreement is a contract between the landlord and the tenant(s) of the property.
• If the agreement says something different to the Act, the rules in the Act override the agreement (unless the agreement is in the tenant’s favour).
• In other words, the rules contained within the Residential Tenancies Act apply to all agreements, including agreements which aren’t in writing – landlords and tenants can’t contract out of the Act.
• Template: You can download and use a tenancy agreement template, provided by Tenancy Services. This is a comprehensive example that covers rent, bond and each person's responsibilities. Tenancy Services is part of the Ministry of Business, Innovation and Employment (MBIE) and provides information on your rights and responsibilities as a landlord or tenant.
• Every time you agree to rent a property, you will have to sign a tenancy agreement. 
  

Know This: What should be in a tenancy agreement?
If you don't use the tenancy agreement template as provided by Tenancy Services, your tenancy agreement must cover this basic information:

a) Information about the tenants and landlords, including:

1. The full names of the parties (including any property managers);
2. The contact details and “address for service” of the parties, which should include the physical address, email address and phone number of each of the parties (this is used to contact the landlord and to send any information); and,
3. If the tenant is under 18.

 
b) Details about the house:

1. The date the tenancy begins (and ends if it’s a fixed-term tenancy);
2. The address;
3. Details outlining the state and conditions of the things which come with the house (any furniture, curtains, art, appliances, or other fittings);
4. An insurance statement from the landlord; and,
5. An insulation statement.

 
c) Details about the costs and payments:

1. The amount of any bond; and,
2. Information about rent, including how often it is to be paid and the bank account it’s to be paid into. A landlord cannot ask for rent more than two weeks’ in advance.

Residential Tenancy Agreement FAQs

Can I add conditions to a tenancy agreement?

Yes. Parties can add additional clauses to the tenancy agreement. It’s common and acceptable for landlords to add clauses which relate to fair wear and tear (such as not allowing smoking or some rules about pets) or rules surrounding assignment and subletting.

What can’t be included in a tenancy agreement?

Landlords can’t add a clause that conflicts with the Residential Tenancies Act. If they do, the clause will likely be regarded as unenforceable by the Tenancy Tribunal. This usually occurs when a clause aims to:

1. Make a tenant do more than what is required of them;
2. Reduces or removes a tenant’s rights under the Act, or gives the landlord with more rights;
3. Evades the requirements of the Act.

 
Examples:

1. A common example of an unenforceable clause is requiring tenants to have their carpets professionally cleaned at the end of a tenancy, or that a tenant must provide the landlord with more than 21 days’ notice to end a periodic tenancy. Neither of these are lawful requirements and cannot be enforced by the landlord.
   
2. For more information on unenforceable clauses, visit the Tenancy Services website. Alternatively, you can free-call Tenancy Services (0800 836 262) or check with Community Law.​

Can I change the tenancy agreement?

Yes. Parties can change the agreement if the change is recorded in writing. The change doesn’t have to be written on to the tenancy agreement, but it must:

1. Be in writing;
2. Outline what the change is and when it takes effect; and,
3. Be signed and dated by all the parties to the tenancy agreement (i.e., all of the tenants)

 
The change to the agreement doesn’t have to be in the physical agreement itself – it can, for example, be written on a regular piece of paper so long as it meets the above requirements.
 
If either party changes their contact details as listed on the tenancy agreement (their phone number, email address, etc.), they must let the other party know within 10 working days.

What does the tenancy agreement say about flatmates?

Flatmates don’t have an agreement with the landlord and are not protected by the Residential Tenancies Act. Their protection depends upon their agreement with the tenants, usually through a flatting-agreement.

The Costs Involved in a Tenancy: Rent, Bonds and Other Expenses

In this section we outline the costs associated with tenancy, and what happens if there is a change in the living situation.

What is a 'bond'?

• A bond is a security for any unpaid rent or damage to the property. It’s paid by the tenant to the landlord and must not be more than four weeks’ rent. A landlord can’t make a tenant pay a “pet bond”.
• Once paid, the landlord must lodge the bond with Tenancy Services within 23 working days and provide the tenant with a receipt of the lodgement. Alternatively, the tenant can pay the bond to Tenancy Services if the landlord allows.
• Both the tenant and the landlord must sign the bond lodgement form.

How does a tenant get their bond back?

• At the end of the tenancy, both the tenant(s) and the landlord must complete a bond refund form – it’s important to know that the bond won’t be refunded unless all tenants who signed the original bond lodgement sign the refund form.
• If there is unpaid rent or other outstanding costs, e.g., damages to the property, the tenant(s) and the landlord can agree to split the bond and reflect this on the bond refund form. If the parties can’t agree on the amount each other should get, they can apply to the Tenancy Tribunal.

Can I transfer my bond from my old place?

• Yes - tenants can transfer their bond to a new property if their landlord agrees. The tenant(s) will have to complete a bond transfer form.

What happens if someone moves out?

• If there is a change of tenant, or if a tenant moves out, the tenants will have to complete a change of tenant form.

What is 'rent'?

• The tenants must pay the landlord the rent (money that gives the right to occupy a property) as stated in their tenancy agreement.
• All landlords must keep a proper record of rental payments; and, if a tenant asks, a landlord must provide them with an up-to-date statement of their rent.

Can rent be increased?

• Yes, but rent can only be increased by the landlord once every 180 days and when doing so, they must provide tenants with at least 60 days’ notice of the increase in writing.
• When the rent has increased, the landlord can also increase the bond so long as it’s not more than four weeks’ rent.

 
Landlords and tenants can agree to increase the rent outside of the normal 180 days period if the landlord has:

1. Significantly improved the property which increases the property’s value and benefit to the tenants;
2. Improved the facilities or services for the tenant; or
3. Changed the tenancy agreement to benefit the tenant.

 
Know this:

1. General repairs and additions which are necessary, like meeting insulation or heating requirements, are not reasons to increase the rent outside of the 180 days period.
2. In a fixed-term tenancy, the rent can only be increased if the agreement allows for it.

How expensive can rent be?

• If a landlord is charging significantly more rent than what might be reasonably expected for the property, the tenant can apply to the tribunal to have the rent reduced.
• However, the tenant will need to have evidence that their rent is a lot higher than similar houses in the same area.
• Tenancy Services has a useful tool to help work this out.

What happens if a tenant misses rent?

• As soon as the tenant is behind in rent, the landlord can provide the tenant with a notice to pay the rent within 14 days (or more than 14 days at the landlord's discretion). 
• If the tenant fails to pay the rent within the set time, usually a minimum of three weeks, the landlord can apply the tenancy tribunal to have the tenant removed.
• If a tenant is behind in rent, it’s a good idea to be honest and upfront with the landlord. Trying to strike an agreement may be a good idea too.

Can a landlord charge fees?

It depends. There are some fees which a landlord can no longer charge their tenants. These include:

1. Letting fees by the real estate agent or property management company;
2. Fees charged by lawyers for drafting a tenancy agreement; or,
3. “Key money” – fees charged by a landlord for securing or holding the property.

Who pays the bills?

• The tenant is responsible for paying the charges for the electricity, gas, phone and internet that they actually use.
• They’re also responsible for paying water charges if the water supplier charges by how much is used.

​Rights and Obligations of Tenants and Landlords

Here’s a quick run-through of tenants’ and landlords’ rights and obligations – what you can and can’t do in a tenancy.

Do tenants have rights?

• Yes - Tenants have the right to the “quiet enjoyment” of the property, meaning that nobody (including the landlord or their workers) can interfere with a tenant’s right to reasonable peace, comfort and privacy of the property.
• This right can extend to other properties which the landlord has control over – for example, apartment blocks. 

Do tenants have responsibilities?

Yes - when renting a property, tenants must:

1. Pay the rent on time – this includes paying even when the landlord hasn’t done repairs;
2. Let the landlord know about any damage or repairs straight away;
3. Keep the property reasonably clean and tidy; and,
4. Pay for their bills and outgoings (gas, electricity and internet).

 
Tenants must be careful not to:

1. Cause any damage to the property or chattels, whether intentionally or carelessly. They are also responsible for any damage caused by guests;
2. Disturb the neighbours or other tenants;
3. Make any alterations or renovations to the property without the landlord’s permission, including affixing items to the property;
4. Have more people living in the house than the tenancy agreement allows;
5. Change the locks; or,
6. Use the property for an unlawful purpose.

What does a landlord have to do when they rent a property?

When a landlord rents a property, they must:

1. Inform the tenant of their insurance over the property;
2. Rent the property in a “reasonable” condition;
3. Meet all the relevant building standards, along with any health and safety standards;
4. Inform the tenant if the property is for sale; and,
5. Appoint an agent if they leave the country for more than 21 days, along with providing tenants of the agent’s contact details.

Can a landlord enter a rental property?

• Yes, but there are limits. A landlord can only enter the property for a set number of reasons. This is because the property is the tenant’s home, so the landlord must respect their quiet enjoyment of the property.
• Landlords don’t, however, require permission to enter the section of the property but they must leave if asked to.

 
Reasons for entering the property include:

1. Entering the property with a tenant’s permission.
2. Inspecting the property. A landlord can only inspect the property once every four weeks and must provide the tenant with at least 48 hours’ notice before the inspection (however, this notice can’t be more than 14 days before the inspection). When inspecting the property, a landlord must come between 8am and 7pm, unless the tenant agrees otherwise. Tenants don’t have to be home during an inspection.
3. For repairs and maintenance. Landlords have to give 24 hours notice before coming to repair the property. “Repairing” doesn’t include cosmetic touch-ups.
4. For agreed services stated in the tenancy agreement. These can be things like mowing the lawn.
5. When showing people the property. Tenants can’t refuse entry unreasonably, but they can set conditions – like only coming on a certain day or at a certain time.
6. In emergencies and to check whether the tenants have moved out.

 
A landlord could be ordered to pay up to $1,000 in damages if they enter the property when they’re not allowed to by the Tenancy Tribunal.

Who is responsible for damage to the property?

• Tenants are responsible for any damage they or their guests cause carelessly or deliberately.
  
• But, Tenants aren’t responsible for damage that is normal fair wear and tear (the gradual deterioration of things that are used regularly).
  
• If a tenant or their guest deliberately cause damage, the landlord can ask them to pay for the damage. If they carelessly cause damage, the maximum they must pay is either the cost of up to four weeks’ rent or the landlord’s insurance excess, whichever is lower. An insurance company cannot sue a tenant.
  
• If the parties can’t agree who should pay for the damage, they can apply to the tenancy tribunal. The landlord must prove that the damage was not fair wear and tear; while the tenant must show that it was careless.
  
• If the repair work is urgent, a tenant can repair the damage and ask the landlord to pay them back – but they must have made a reasonable attempt to let the landlord know of the damage first.
  
• As a tenant, it’s a good idea to have renters’ insurance. You can read up on it here.
  
• For more information on damaging property, see the Tenancy Services website.

Landlord Responsibilities

To be lawful, a rental property needs to meet a number of standards. We address these below:
 
What are the insulation requirements?

1. Landlords must ensure that their homes have ceiling and underfloor insulation, in line with the current insulation regulations which can change between houses. Landlords who don’t comply with the insulation regulations may have to pay their tenant(s) up to $4,000 in damages.
2. If a landlord says they can’t insulate the house, they must provide written certification from an experienced professional insulation installer that insulating the house is too hard or isn’t “reasonably practicable”.
3. A full list of the reasons for not insulating can be found on the Tenancy Services website.

 
What are the Healthy Homes Standards?
These standards took place on 1 July 2019. They include:

1. Heating standards: landlords must provide one or more heaters fixed heaters in the living room that can heat the room to at least 18 degrees Celsius;
2. Ventilation standards: where landlords must provide adequate ventilation throughout the house;
3. Moisture and drainage standards: where properties must have efficient drainage; and,
4. Draught stopping standards: where landlords must prevent unreasonable draughts. 

How to End a Tenancy

There are a few ways for either party, landlord or tenant, to get out of a tenancy agreement. We outline what you need to know and the options in this section.
 
Know This First - Giving Notice for Indefinite (Periodic) Tenancies
To end a periodic tenancy, landlords and tenants must provide adequate notice in writing which:

1. States the address of the property;
2. Specifies the date the tenancy is to end; and,
3. Is signed by all the tenants of the property.

 
How much notice does a tenant have to give to end a tenancy?
The Residential Tenancies Act requires different lengths of notice for landlords and tenants.
 
Tenants must provide 21 days’ notice to the landlord (unless the landlord agrees to a shorter notice period).
 
How much notice does a landlord have to give to give to end a tenancy?

• A landlord must provide 90 days’ notice if they want to end the tenancy. However, they only have to provide 42 days’ notice when:

1. They’ve sold the property and the new owner wants “vacant possession” – meaning they don’t want tenants;
2. The owner or their family want to live in the house; or,
3. The landlord usually has its employees living in the house – however, they must have told you this in your tenancy agreement.

 
In the landlord’s notice, they must tell the tenants which of the situations apply. The reason must be true and genuine.
 
Landlords cannot serve a “retaliatory notice” – that is, they can’t tell the tenants to leave when tenants stand up for their rights (e.g., if they complain about lack of the insulation, or ask the landlord to repair the property). If a landlord issues a retaliatory notice, they can be made to pay $4,000 to the tenants.
 
Exceptions
The usual amount of notice doesn’t have to be provided in the following situations:

1. If the tenant and landlord agree to end the tenancy early;
2. If the tenant is renting from their boss (this is a “service tenancy”) and they quit their job or are fired. In this case, the required notice period is 14 days, sometimes less;
3. If the Tenancy Tribunal orders the tenancy be terminated on a certain date; and,
4. If the only tenant dies. If this happens, see: Tenancy Services.

Can you end a fixed-term tenancy early?

• Yes - Tenants and Landlords cannot give notice to end a fixed-term tenancy early like they can with a periodic one. Fixed-term tenancies can only be ended early if the tenant and landlord agree to this in writing or in their tenancy agreement.
• When ending a fixed-term tenancy early, the landlord can charge a fee so long as it covers their actual and reasonable costs.
• Tenants can apply to the Tenancy Tribunal to have their tenancy terminated early if they have an unforeseen change in their situation that means the continuation of the tenancy would cause “severe hardship”. An example could be a tenant losing their job. The tribunal can, however, order the tenant to pay the landlord compensation for ending the fixed-term tenancy early. 

What happens after the fixed-date?

A fixed-term tenancy of 90 days or less finishes on the date specified in the agreement. After 90 days, the fixed term tenancy continues as a periodic tenancy, unless:

1. The tenant and the landlord agree otherwise; or,
2. If either party gives notice saying that they don’t want to continue the tenancy between 90 and 21 days before the end date.

 
If the tenant stays at the property for more than 90 days after the tenancy ends, and neither party has provided notice in the required timeframe, the tenancy becomes a periodic one.

Can the Tenancy Tribunal End a Tenancy?

• The Tribunal has the power to - either the tenant or the landlord can apply to the Tribunal the tenancy terminated if the other party has breached their obligations or rights under the tenancy agreement or Residential Tenancies Act.
• However, for this to happen, one party must have given the other a notice to fix the problem within a set time – usually about two weeks.
• A landlord can apply to the Tenancy Tribunal if their tenant is three weeks or more behind in rent. However, it’s not guaranteed whether or not the Tribunal will decide to have the tenant evicted – they can make a conditional order and give the tenant a second chance instead if they believe they won’t miss rent again.​
• For more about the powers and process of the Tenancy Tribunal, see our section below (LINK).

What Should a Tenant do When Leaving?

When a tenant leaves the property, they must leave the place reasonably clean and tidy and remove all of their possessions from the property. They must also return the keys to the landlord.

What if a Tenant Leaves Things Behind?

If a tenant leaves possessions behind, it is the landlord’s responsibility to follow-up with the ex-tenant. If the landlord can’t reach the tenant, they can usually sell or dispose of the tenant’s property.

Disputes Between Tenants and Landlords - 5 Things to Know about the Tenancy Tribunal

1. If you have a dispute over your tenancy, you can contact Community Law or Tenancy Services for free advice.
2. Early on, parties (i.e. tenant and landlord) should try to solve the problem together – through talking or email. If that doesn’t work, Tenancy Services provide a free mediation service where a mediator will try to help parties reach a solution.
3. Should mediation not work, or be unsuitable, there is the option of the Tenancy Tribunal.

In the section below, we outline five important Tenancy Tribunal facts to help you resolve issues with your rental situation.

What does the tenancy tribunal do?

The Tenancy Tribunal will hear both sides of the argument and can issue a legally binding order. It’s faster than a normal court and a lot cheaper, costing $20.44.
 
Disputes heard by the Tribunal usually involve deciding whether a party breached the Residential Tenancies Act by:

1. Doing something that they weren’t supposed to (like breaking something);
2. Failing to do something that they had to (e.g., installing insulation or paying rent);
3. Deciding whether an agreement exists or whether an agreement is under the Residential Tenancies Act; or,
4. By adding illegal clauses to the tenancy agreement

How do you apply to the Tribunal?

• To apply, you need a RealMe login, a working email address, your bond number (if you have one lodged), and electronic copies of the tenancy agreement and any other supporting documents.
  
• To apply to the Tenancy Tribunal, you have to complete an application form, which can be done online and takes about 10 minutes.
  
• When you fill out the form you don’t need to use special “legal” language – you simply have to tell your side of the story and what you think happened. There is more information about filling out the form, on the Tenancy Services website.
  
• Once you’ve applied, the wait time can be anything from 20 days to several weeks – it all depends upon how busy the Tribunal is. Some urgent cases may be heard within 20 working days. For example, cases where there is a serious risk to people or property.

What should I do before the hearing?

1. You should prepare what you want to say by writing down what you want to tell the adjudicator. Try and think about what the other party will argue and how you can explain why the adjudicator should listen to you over them.
2. You must prepare and bring at least three copies of any supporting documents and evidence that you want to show the adjudicator (evidence could be bank statements, tradesperson quotes, text messages, emails, etc.). Try and think about how this evidence helps your case and supports your story.
   
3. If you want to know more information about getting ready for the hearing, talk to someone at your local Community Law Centre or head to the Tenancy Services website.

What happens during the hearing?

During the hearing, people cannot have a lawyer or other person represent them unless it is a special circumstance applies. You must tell the truth during the hearing.
 
The hearing itself is simple, what happens is:  

1. Both sides tell their stories;
2. Sometimes witnesses speak (if you have any witnesses, you can ask them to come and tell the tribunal their story);
3. The adjudicator will make a decision; and then,
4. You receive an order. An “order” is the Tribunal’s decision and the result of the case. Orders instruct parties what they must do to fix their breach of the Residential Tenancies Act (e.g., an order may tell a landlord to pay a tenant compensation). You must obey the order.

 
If either party is unhappy with the Tribunal’s order, they can challenge the decision in the District Court within 10 days of the Tribunal’s decision.

What can the tribunal order?

The Tribunal can order a tenant to leave the property, order a party to pay the other, or order a party to “work off” the damage caused. For more information on what the Tribunal can order, see the Tenancy Services website.

​

Other Tenancy Issues - Subletting and Boarding

Assigning and Subletting

1. What is Assigning?

• Assigning a tenancy is when one tenant has their name taken off the lease and has another tenant take their place. It can be a good option for when a tenant wants to move out.
• Before the assignment takes place, it’s important to check whether the tenancy agreement allows for it. If the agreement doesn’t forbid assignment, tenants require the landlord’s agreement but the landlord can’t unreasonably refuse to consent.

 
To assign the lease, the tenant must:

1. Record the change in writing;
2. Have the landlord and any other remaining tenants sign it, and provide each party with a copy; and,
3. If a bond has been lodged with Tenancy Services, complete a change of tenants form and send it to Tenancy Services.

 
Upon assigning the tenancy, the landlord can ask the tenant to pay for all reasonable costs incurred in finding a new tenant (such as credit checks, etc.). When the tenant leaves the tenancy, they must pay the landlord any money that they owe.
 
2. What is Subletting?

• Subletting is different from assigning a tenancy. When a tenant sublets, they become the sub-landlord to the sub-lessee (i.e. the person(s) moving into the house).
• Tenants must have the landlord’s permission to sublet. Renting a home out as temporary holiday accommodation is seen as subletting. 
• During the sublet, the original tenant remains responsible to the landlord for the tenancy.
• The original tenant needs to have a written agreement with the sub-lessee. The landlord is entitled to recover from the tenant any expenses “reasonably incurred” in the arrangement e.g. increased insurance fees.

 
3. What is Boarding and is it covered by the Residential Tenancies Act?

• Boarders have some protections under the Residential Tenancies Act, but those protections don’t apply to:

1. Short stays (where boarders stay for less than 28 days); or,
2. Small boarding houses that aren’t intended for more than five tenants.

 
Limitations - If the Act doesn’t cover your specific boarding arrangement, the boarder still has some protections under standard consumer law. For more on this, talk to your local Community Law office.
 
Boarding houses include rules within the Residential Tenancies Act, the terms of the tenancy, and the “house rules” set by the landlord. Here is a template boarding house agreement from Tenancy Services. 
 
Boarding houses have different rules for renting, bonds, and shared facilities. Community law has a good chapter on boarding arrangements, found here.

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This is the first edition of our residential tenancies guide. If you have experiences you would like to share and/or tips you think we should include, please contact our team.