08 December 2020

Ending or amending a Tenancy Agreement

A written and signed Tenancy Agreement is a legal requirement under the revised RTA from February 2021. 

This is a record of what the rental property owner and the rental customer have agreed to. It covers both the information about the rental property and the specifics of the tenancy. A rental property owner, or a property manager acting on their behalf, and the rental customer need to sign the Tenancy Agreement, and everyone needs to have a copy that they can refer to if they need to. 

Tenancy Agreements can be terminated only for reasons that align with the Residential Tenancies Act.

 

Reasons either party can end a Tenancy.

Depending on the type of tenancy, an agreement might end because the rental customer or the property manager provides notice to terminate the Tenancy Agreement, or if both parties come to an agreement to bring the contract to an end on a specific date. 

In some rare cases, however, there will be more serious reasons why a Tenancy Agreement might need to end:

  • Breach of the Tenancy Agreement or the Residential Tenancies Act.
  • The rental property has been abandoned.
  • Unexpected changes in circumstances leading to severe hardship. 
  • The rental property has been sold by the rental property owner or sold in a mortgagee sale.
  • The rental property has been placed on the market for sale.
  • The owner or owners family will move into the property within 90 days of the notice to end the tenancy and remain in residence for at least 90 days

When a Tenancy Agreement expires, there are a few tasks that should be taken care of by the rental property owner:

  • Put in writing the responsibilities of the rental customer, including the final rent payments, and the plan for a smooth handover.
  • Complete a property inspection and agree on any remedial repairs or final tasks for the rental customer. 
  • Plan for some time between tenancies to complete any additional maintenance or cleaning that is required. 
  • Complete all paperwork, such as bond refund forms.

 

Amending a Tenancy Agreement

There are a few situations where rental property owners or rental customers may want to make a small change to an existing Tenancy Agreement or renew the deal for a fixed period, but not end the current contract. 

Any changes that are made must be recorded in writing and signed by everyone involved. The rental customer and the rental property owner must add the change to the existing Tenancy Agreement alongside:

  • The date that it takes effect,
  • The rental property owner’s signature and date,
  • All rental customers’ signatures and date.

The newly signed version of the Tenancy Agreement should be made available to everyone affected.

There are a few situations that will change the context of a Tenancy Agreement and will require changes to be made to the documents that are filed with a Tenancy Agreement, like a bond. These changes include situations like the rental customer wanting to move out or have themselves replaced. They also apply if the rental property owner leaves New Zealand, hands responsibility over to a property manager, or the rental property is put on the market and is sold.

In every situation, the relevant parties must communicate the change clearly. In some cases, a whole new Tenancy Agreement, bond and other documents may need to be completed, and signed again.

 

Where to get a Tenancy Agreement template?

You’ll find a suite of templates and practical resources from the Tenancy Services. Their website offers a Tenancy Agreement form which can be downloaded and used by rental property owners and rental customers alike.