What are the Residential Tenancy Act 1986 changes?
Christie Nelson explains the changes for Landlords and Tenants under the Residential Tenancy Act below:
Landlords terminating a periodic tenancy:
There were multiple changes to the Residential Tenancy Act 1986 which have been released in 3 Phases. Phase 1 deals with the period of time a Landlord can increase rent, which came into effect on 20 August 2020. Phase 2 deals with multiple changes, which came into effect on 11 February 2021 and Phase 3 has not yet come into effect as regulation are being developed.
One of the changes in Phase 2 was the increase of the notice period for a Landlord to terminate a periodic tenancy, together with new reasons to terminate.
Landlords will not be able to end a periodic tenancy without cause and are required to:
(a) Give at least 90 days’ notice to the Tenant in the event of the following:
The property is being placed on the market within 90 days after the termination date OR the property is being sold and the purchaser requires vacant possession on settlement OR if the Landlord is not the owner of the premises and the Landlords interest is due to end.
The property was purchased for the use of a nearby business activity and is required to be vacant for that purpose. Please note: this must be clearly stated in the tenancy agreement so both parties are aware of the situation in order for the termination to take effect.
The property is to be converted into a commercial premises for at least 90 days.
Extensive renovations are to be carried out on the property within 90 days after termination date OR the property is to be demolished and the tenant cannot remain in the property.
OR
(b) Give at least 63 days’ notice to the Tenant in the event of the following:
The owner of the property or a member of the owner’s family is going to reside in the property within 90 days after the termination date for a period of at least 90 days.
The property was normally used as employee accommodation and is required again for that purpose. Please note: this must be clearly stated in the tenancy agreement so both parties are aware of the situation in order for the termination to take effect.
The notice to the Tenant must be in writing and outline certain details to be valid.