Becoming a landlord can be a rewarding way to earn passive income and build a property portfolio. But it comes with real legal obligations — obligations that carry penalties if ignored, and that protect both you and your tenants.
Whether you are renting out a residential property for the first time or purchasing commercial premises to lease to a business, understanding your legal duties from day one is essential. This article covers both residential and commercial landlord obligations under New Zealand law.
Residential Landlord Obligations
The Residential Tenancies Act 1986 (as amended 2020)
The Residential Tenancies Act 1986 (RTA) was significantly amended in 2020. The key changes affecting landlords were:
- No-cause terminations abolished. Landlords can no longer give a 90-day no-cause termination notice for periodic tenancies. Termination now requires one of the specific grounds listed in the Act (e.g. landlord or family moving in, property sold, tenant at fault).
- Rent increase frequency. Rent increases are now permitted only once every 12 months.
- Retaliatory notice. A termination notice given in response to a tenant’s complaint or legitimate exercise of rights may be treated as retaliatory and be of no effect.
- Tenancy Tribunal jurisdiction was increased to $100,000.
Healthy Homes Standards
The Healthy Homes Standards (effective from 2019, with phased compliance deadlines) set minimum requirements for rental homes in five areas:
| Standard | Requirement | Deadline for Existing Rentals | |
|---|---|---|---|
| Heating | Heating | At least one fixed heater capable of heating the main living room to 18°C | All rentals from 1 July 2025 |
| Insulation | Insulation | Ceiling and underfloor insulation meeting specified R-values where possible | All rentals from 1 July 2025 |
| Ventilation | Ventilation | Extractor fans in kitchens and bathrooms; openable windows in habitable rooms | All rentals from 1 July 2025 |
| Moisture and drainage | Moisture and drainage | Efficient drainage, gutters, and ground moisture barriers where applicable | All rentals from 1 July 2025 |
| Draught-stopping | Draught-stopping | Gaps and holes that cause draughts must be stopped | All rentals from 1 July 2025 |
Landlords must include a Healthy Homes Compliance Statement in any new or renewed tenancy agreement. Providing a false or misleading statement attracts a fine of up to $7,200. Tenancy Services carries out periodic compliance audits.
Bond Obligations
A landlord may require a bond of up to 4 weeks’ rent. The bond:
- Must be lodged with Tenancy Services within 23 working days of receipt.
- Is held by Tenancy Services, not the landlord, for the duration of the tenancy.
- Can only be applied at the end of the tenancy for unpaid rent, property damage beyond fair wear and tear, or other legitimate claims.
- Must be refunded (or a claim made) within a reasonable time after the tenancy ends.
Failure to lodge the bond within 23 working days is an unlawful act under the RTA and can attract a penalty of up to $1,000.
Notice Periods and Termination Grounds
Post-2020 amendments significantly restrict when and how a landlord can end a tenancy:
| Ground for termination | Notice period | |
|---|---|---|
| Landlord or close family member moving in | Landlord or close family member moving in | 63 days |
| Property sold and buyer requires vacant possession | Property sold and buyer requires vacant possession | 63 days |
| Substantial redevelopment, renovation, or demolition | Substantial redevelopment, renovation, or demolition | 63 days |
| Tenant at fault (anti-social behaviour after three notices in 90 days) | Tenant at fault (anti-social behaviour after three notices in 90 days) | 14 days |
| Tenant 21 days in arrears | Tenant 21 days in arrears | 14 days (after prior notice) |
| Fixed-term tenancy expiry | Fixed-term tenancy expiry | 90 days (if not renewing) |
If you give a notice on incorrect grounds or without the required supporting evidence, the Tenancy Tribunal can set the notice aside.
Quiet Enjoyment
Your tenant has the right to enjoy the property without interference. You cannot enter without notice except in genuine emergency. Under the RTA, landlords must give at least 24 hours’ written notice before inspection, and may only carry out inspections up to once every 4 weeks (unless the tenant agrees to more).
A landlord who enters without notice, interferes with the tenant’s quiet enjoyment, or makes the property uninhabitable may face a penalty and an order to compensate the tenant — even if the landlord believes they had good reason.
Property Maintenance
The landlord must keep the premises in a reasonable state of repair throughout the tenancy, having regard to the age and character of the property. The tenant’s obligation is to keep the property reasonably clean and tidy and to promptly notify the landlord of any damage.
Maintenance responsibilities are broadly:
- Landlord: exterior, structure, services (plumbing, electrical), and appliances provided by the landlord.
- Tenant: interior cleanliness and minor wear and tear repairs (e.g. replacing light bulbs).
Major repairs must not be deferred indefinitely. If a landlord fails to maintain, a tenant can apply to the Tenancy Tribunal for a work order or rent reduction.
Commercial Landlord Obligations
Commercial properties operate under a different legal framework. The tenancy is governed by the ADLS Deed of Lease (or a bespoke lease agreement) rather than the RTA.
Quiet Enjoyment
Commercial tenants also have a right to quiet enjoyment of the premises. You cannot interrupt a tenant’s trading by commencing works, cutting services, or interfering with access without proper legal process. If you want to carry out works that affect the tenant, you must comply with the lease’s provisions and give appropriate notice.
Health and Safety
Under the Health and Safety at Work Act 2015, commercial landlords are a “person conducting a business or undertaking” (PCBU) with management or control of a workplace. This means you have a duty to eliminate or minimise risks to health and safety so far as reasonably practicable — even where the tenant is operating the workplace day-to-day.
In practice, this requires you to:
- Ensure the building’s structure, services, and common areas are safe.
- Carry out and document regular safety inspections.
- Respond to hazard notifications from tenants promptly.
- Coordinate with the tenant on shared health and safety responsibilities under a Principal Contractor or PCBU agreement where construction or fit-out works occur.
Building Warrant of Fitness (BWoF)
If your commercial building has specified systems (sprinklers, smoke detectors, emergency lighting, lifts, air conditioning), you are required to obtain and display an annual Building Warrant of Fitness. This involves:
- Annual inspection by Independent Qualified Persons (IQPs) for each specified system.
- Lodging the BWoF certificate with the local council.
- Maintaining records of inspections, maintenance, and compliance for at least 2 years.
Failure to comply with BWoF requirements is an offence under the Building Act 2004.
Outgoings Recovery
Most NZ commercial leases require the tenant to pay outgoings — rates, insurance, body corporate levies, and building management fees — on top of base rent. As landlord, you must:
- Provide an accurate outgoings estimate at the start of each year.
- Issue a reconciliation statement at year end comparing actual outgoings to the estimate.
- Apply the outgoings definition in the lease consistently — you cannot recover capital expenditure as an outgoing unless the lease expressly allows it.
Assigning and Subletting
If your tenant wants to assign the lease or sublet part of the premises, you are required to act reasonably. You cannot unreasonably withhold consent — you can only decline on genuine grounds such as concerns about the proposed assignee’s financial position or intended use.
If you withhold consent unreasonably, the tenant may have a claim against you for breach of the lease.
Rent Reviews
The rent review process is governed by the lease. Common types include market reviews, CPI reviews, and fixed percentage reviews. Under a market review, either party can call for a review and, if they cannot agree, an independent valuer determines market rent. Make sure the review dates are diarised — some leases specify that if the review is not triggered within a certain window, it may lapse.
Tenant Screening: Getting It Right Before You Sign
The best way to avoid disputes and vacancies is to select the right tenant from the start.
Commercial and residential tenant screening checklist
0/0 completeDispute Resolution
Residential
Residential tenancy disputes are resolved by the Tenancy Tribunal, which has jurisdiction up to $100,000. Applications are straightforward and inexpensive; legal representation is not required but can help on complex matters. For smaller claims, mediators are available before a hearing.
Commercial
Commercial lease disputes are generally resolved by negotiation, mediation, or litigation in the District Court or High Court (depending on value). The ADLS Deed of Lease contains a dispute resolution process that must typically be followed before court proceedings.
If you are facing a dispute — whether about rent arrears, make-good, assignment consent, or health and safety obligations — obtain legal advice early. Disputes are much easier to resolve before positions harden.
Getting It Right from Day One
Whether residential or commercial, the foundation of a good landlord-tenant relationship is a well-drafted lease, accurate onboarding, prompt maintenance, and clear communication.
Get in touch with NZ Legal for help reviewing your lease, meeting your compliance obligations, or resolving a tenancy dispute.
This article provides general information only and is not a substitute for legal advice. Landlord obligations change over time; the information above reflects the law as at May 2026.
Sources
- Residential Tenancies Act 1986 (as amended by the Residential Tenancies Amendment Act 2020)Governs residential tenancy obligations, notice periods, bonds, and termination grounds.
- Healthy Homes Standards (Housing Improvement Regulations 2019)Minimum heating, insulation, ventilation, moisture, and draught-stopping standards for rental homes.
- Health and Safety at Work Act 2015Applies to landlords as persons conducting a business or undertaking (PCBU) with control of a workplace.
- ADLS Deed of Lease (Sixth Edition 2012, revised 2021)The standard NZ commercial lease form governing landlord and tenant obligations.
- Building Act 2004 (Building Warrant of Fitness)Annual BWoF compliance obligations for commercial building owners.
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