Understanding your tenancy agreement

A tenancy agreement is more than just a piece of paper; it’s a legally binding contract between you (the tenant) and your landlord. It sets out all the terms and conditions of your rental arrangement. In New Zealand, all tenancy agreements must be in writing, and it’s crucial that you read and understand it before you sign.

This guide breaks down the essential parts of a tenancy agreement to help you know your rights and responsibilities from day one.

What must be included in a tenancy agreement?

Under the Residential Tenancies Act, every tenancy agreement must include certain key pieces of information to be valid. Before you sign, check that your agreement has all of the following:

Full names and contact details: The full legal names and contact information (including an address for service) for both you and your landlord. If a property manager is involved, their details should be listed as the landlord’s agent.
Property address: The address of the rental property.
Dates: The date the agreement is signed and the date the tenancy will officially begin.
Rent details: The weekly rent amount, how often it needs to be paid (e.g., weekly or fortnightly), and the bank account number for payments. A landlord cannot ask for more than two weeks’ rent in advance.
Bond amount: The total bond you need to pay. In New Zealand, the bond cannot be more than the equivalent of four weeks’ rent. The agreement must state that the bond will be lodged with Tenancy Services.
List of chattels: A list of all items provided by the landlord, such as the oven, curtains, heat pump, or dishwasher.
Type of tenancy: The agreement must state whether the tenancy is a fixed-term or a periodic tenancy.

Two important statements you must receive

Your tenancy agreement must also include two signed statements from the landlord:

A Healthy Homes Standards compliance statement: This details the property’s current level of compliance with the Healthy Homes Standards, which cover heating, insulation, ventilation, moisture, and drainage.
An insurance statement: This confirms whether or not the property is insured and includes the excess amount for any policies. This is important as it can affect your liability for careless damage.

Fixed-term vs. periodic tenancy: what’s the difference?

Understanding the type of tenancy you are entering into is crucial, as it affects how and when the tenancy can end.

Fixed-term tenancy: This has a specific start and end date (e.g., 12 months). A fixed-term tenancy cannot be ended early unless both you and the landlord agree. At the end of the term, it automatically becomes a periodic tenancy unless one party gives notice that they don’t want it to continue.
Periodic tenancy: This has a start date but no fixed end date. It continues until either you or the landlord gives the correct written notice to end it. As a tenant, you must give at least 28 days’ written notice to end a periodic tenancy.

What about special conditions or extra clauses?

Landlords can add extra conditions to the tenancy agreement, such as rules about pets or smoking. However, these clauses cannot contradict the rights you have under the Residential Tenancies Act.

For example, a clause requiring you to have the carpets professionally cleaned when you move out is unenforceable. Your legal obligation is to leave the property in a reasonably clean and tidy condition, which may or may not require professional cleaning.

Before you sign

Always take the time to read the entire agreement carefully. If there is anything you don’t understand, ask the property manager to explain it. Once you sign the agreement, it is legally binding. The landlord must give you a signed copy before your tenancy begins, and you should keep it in a safe place for future reference.

Have questions about your tenancy agreement?

A tenancy agreement is a legal document, and it’s important you feel confident about what you’re signing. If you’re unsure about any part of your agreement or the rental process, our team is here to provide clear, simple answers.

Call us today on (09) 626 6119 for a friendly, confidential chat.