Tenancy Agreements: What They Must Include

Under the Residential Tenancies Act, all tenancy agreements must be in writing and include specific mandatory information. Landlords are legally required to provide a written tenancy agreement within 21 working days of the tenancy beginning, regardless of whether it's a fixed-term or periodic arrangement.

The agreement must clearly state the names and contact details of all parties, the rental property address, the rent amount and payment frequency, and the bond amount if applicable. It must also specify whether the tenancy is fixed-term or periodic, and if fixed-term, the start and end dates must be clearly documented.

Additional mandatory inclusions cover the services provided with the tenancy (such as water, electricity, or internet), any chattels or furnishings included with the property, and details about how rent can be increased. The agreement must also include information about the property's insulation and compliance with healthy homes standards.

Failure to provide a compliant written agreement can result in penalties for landlords and may affect their ability to enforce certain terms or increase rent. For tenants, an incomplete agreement can make it harder to understand and enforce your rights.

Beyond the basic legal requirements, effective tenancy agreements should include clear clauses covering key aspects of the rental relationship. Rent payment terms should specify not just the amount and frequency, but also acceptable payment methods and any consequences for late payment that comply with legal limits.

Property condition clauses should reference the property inspection report and outline responsibilities for maintaining the property's condition throughout the tenancy. This includes clarifying which party is responsible for different types of maintenance and repairs, from routine upkeep to emergency situations.

Bond and deposit clauses must comply with legal requirements about bond amounts (typically no more than four weeks' rent) and lodgement with Tenancy Services. The agreement should also clearly state the process for bond refunds and any deductions that might apply at the end of the tenancy.

Termination clauses should outline the notice periods required for different situations and reference the legal grounds for ending tenancies. While these clauses cannot override statutory rights, they help both parties understand the proper procedures for ending a tenancy when the time comes.

Many tenancy agreements include additional terms beyond the basic legal requirements, but these must comply with the Residential Tenancies Act and cannot remove or reduce tenants' statutory rights. Common additional clauses might cover pets, smoking restrictions, or specific rules about property use.

Pet clauses are increasingly common and can specify whether pets are allowed, any restrictions on types or numbers of pets, and additional responsibilities for pet-owning tenants. However, landlords cannot unreasonably refuse consent for pets, and any pet-related terms must be fair and reasonable.

Maintenance and improvement clauses might specify tenant responsibilities for garden care, cleaning standards, or minor maintenance tasks. These clauses must be reasonable and cannot shift the landlord's legal obligations for property maintenance onto the tenant.

Some agreements include clauses about rent reviews, property inspections, or specific house rules for multi-unit properties. While these can provide useful clarity, they must still comply with legal requirements about landlord entry rights and rent increase procedures.

One of the most frequent mistakes in tenancy agreements is including clauses that attempt to override tenants' legal rights. These might include terms requiring tenants to pay for all maintenance, waiving rights to quiet enjoyment, or allowing unlimited rent increases. Such clauses are unenforceable and can create confusion about actual rights and responsibilities.

Incomplete or vague terms are another common problem. Agreements that don't clearly specify rent amounts, payment dates, or property boundaries can lead to disputes that are difficult to resolve. Similarly, failing to properly document the condition of chattels or furnishings can cause problems when the tenancy ends.

Many agreements also fail to properly address modern tenancy issues like internet provision, electric vehicle charging, or compliance with healthy homes standards. As rental laws evolve, agreements need to be updated to reflect current requirements and common tenancy arrangements.

Incorrect or missing information about bond lodgement, rent increase procedures, or termination notice periods can also create legal complications. These procedural requirements are strictly enforced, and getting them wrong can affect landlords' ability to take certain actions during the tenancy.

New Zealand's tenancy laws provide strong protections for tenants that cannot be waived or reduced by tenancy agreement terms. These include the right to quiet enjoyment of the property, protection from retaliatory action by landlords, and strict limits on rent increases and bond amounts.

Tenants have the right to a property that meets healthy homes standards and is maintained in reasonable repair throughout the tenancy. Agreement clauses cannot shift these fundamental landlord obligations onto tenants, even if tenants agree to such terms in writing.

The law also protects tenants from unfair termination and provides specific notice periods that must be followed regardless of what the tenancy agreement says. Tenants facing breach notices or termination attempts have rights to challenge these actions if proper procedures aren't followed.

Privacy rights are another key protection, with strict rules about when and how landlords can enter rental properties. Agreement terms cannot override these privacy protections or allow unlimited access to the property.

Landlords have significant legal obligations that must be reflected in tenancy agreements, starting with the requirement to provide a property that is fit for habitation and meets all relevant standards. This includes compliance with healthy homes standards, building codes, and local council requirements.

Maintenance obligations require landlords to keep the property in reasonable repair and respond promptly to maintenance issues that affect tenants' health, safety, or reasonable enjoyment of the property. While agreements can specify some maintenance responsibilities for tenants, core structural and safety maintenance remains the landlord's responsibility.

Bond handling is another critical obligation, with strict requirements about lodging bonds with Tenancy Services within 23 working days and providing tenants with proper documentation. Landlords who fail to lodge bonds correctly can face penalties and may be unable to claim against the bond later.

Privacy obligations require landlords to give proper notice before entering rental properties and to respect tenants' quiet enjoyment rights. Agreement terms cannot override these obligations or provide landlords with unlimited access rights.

Well-drafted tenancy agreements are one of the most effective tools for preventing disputes between landlords and tenants. Clear, comprehensive agreements that comply with legal requirements help both parties understand their rights and responsibilities from the start of the tenancy relationship.

Property condition documentation is crucial for preventing end-of-tenancy disputes about damage and bond refunds. Agreements should reference detailed property inspection reports and clearly outline the process for documenting any changes to the property's condition during the tenancy.

Communication procedures outlined in agreements can help resolve minor issues before they become major disputes. This might include preferred methods for reporting maintenance issues, procedures for requesting property modifications, or protocols for addressing concerns about agreement terms.

Regular review and updates of tenancy agreements help ensure they remain compliant with changing laws and reflect current best practices. Landlords using outdated agreement templates may inadvertently include terms that are no longer legal or fail to address current requirements.

Legal advice can be valuable when reviewing or drafting tenancy agreements, particularly for complex situations or when significant money is involved. Landlords managing multiple properties or dealing with commercial tenancies should consider professional legal review of their standard agreements.

Tenants should seek legal advice if they're asked to sign agreements with unusual terms, significant additional clauses, or anything they don't understand. This is particularly important for high-value rentals, long-term fixed agreements, or situations involving business use of residential properties.

If disputes arise about agreement terms or their interpretation, early legal advice can help clarify rights and options before the situation escalates. Understanding whether specific clauses are enforceable or how legal requirements apply to your situation can inform better decision-making.

Both landlords and tenants should consider legal advice if they're facing Tenancy Tribunal proceedings related to agreement terms or breaches. Professional representation can be particularly valuable for complex cases or when significant financial interests are at stake.