Lease Renewal Agreement (New Zealand)

A Lease Renewal Agreement in New Zealand grants a tenant the right to occupy residential premises and records the rent, bond, term, and the repair and notice obligations of landlord and tenant under the Residential Tenancies Act 1986.

Under the Residential Tenancies Act 1986, when a fixed-term tenancy expires and neither party gives notice, the tenancy automatically continues as a periodic tenancy on the same terms. A lease renewal agreement is used when the parties want to extend the tenancy for another fixed term — for example, a further six or twelve months — or when they wish to formally record changes to the existing terms, such as a rent increase or modifications to specific conditions. The renewal agreement incorporates the original agreement by reference and only needs to address those terms that are changing or are new, making it a concise and efficient document.

Rent increases are one of the most common reasons for entering into a lease renewal agreement. Under section 24 of the Residential Tenancies Act 1986, a landlord can only increase rent once every 12 months and must give the tenant at least 60 days' written notice before the increase takes effect. A lease renewal agreement that includes a rent increase serves as both the formal record of the new rent and the required notice, provided it is given to the tenant with sufficient advance notice. If the new rent is higher than the previous rent, a bond top-up may also be required, as the maximum bond under section 19 of the RTA is four weeks' rent.

The Healthy Homes Guarantee Act 2017 continues to apply during any renewal period, and the landlord must confirm in the renewal agreement that the property continues to meet all five Healthy Homes Standards — covering heating, insulation, ventilation, moisture ingress and drainage, and draught stopping. Since 1 July 2025, all private rental properties in New Zealand must comply with the full Healthy Homes Standards, and non-compliance can result in exemplary damages of up to $7,200 per standard breached, as awarded by the Tenancy Tribunal.

A New Zealand lease renewal agreement should clearly set out the new term start and end dates, the new rent amount and payment frequency, the bond status (whether the existing bond continues unchanged or a top-up is required), the Healthy Homes Standards confirmation, and any additional or modified terms. The document should be signed by both the landlord and all tenants listed on the original agreement. Where a property manager acts on behalf of the landlord, their details should also be included and they may sign on behalf of the landlord if authorised to do so.

A Lease Renewal Agreement is needed whenever a landlord and tenant in New Zealand wish to extend an existing fixed-term residential tenancy for a further period. It is the appropriate document in several common situations arising in the New Zealand rental market.

The most common situation is at the expiry of the initial fixed term — for example, when a 12-month fixed-term tenancy is coming to an end and both the landlord and tenant wish to continue the arrangement for a further six or twelve months. Rather than letting the tenancy lapse into a periodic tenancy by default, many landlords and tenants prefer the certainty of a new fixed term, and the lease renewal agreement is the formal way to achieve this.

A lease renewal agreement is also appropriate when the landlord wants to adjust the rent at the time of renewal. Under section 24 of the Residential Tenancies Act 1986, the landlord must give at least 60 days' written notice of a rent increase, and the renewal agreement serves as the vehicle for communicating and recording the new rent. It is important that the renewal agreement is provided to the tenant at least 60 days before the new rent takes effect, to comply with the statutory notice requirements. If the rent was increased during the original fixed term and 12 months have not yet elapsed, a further increase cannot take effect until the 12-month period has passed.

Property managers managing investment properties in New Zealand routinely use lease renewal agreements to formalise the continuation of tenancies on behalf of their landlord clients. The renewal agreement provides a clear and auditable record of the terms of the continuing tenancy, which is valuable both for the parties' own records and for any future dispute resolution before the Tenancy Tribunal.

If any additional or modified terms are being introduced at the time of renewal — for example, a new pet consent, a smoking prohibition, or a maintenance obligation undertaken by the landlord — these should be recorded in the renewal agreement. This confirms that both parties are clear on the agreed terms and prevents disputes about what was agreed at the time of renewal.

Finally, where a bond top-up is required because the new rent exceeds the previous rent and the existing bond is less than four weeks of the new rent, the renewal agreement provides the formal basis for requesting the top-up. The landlord must lodge any additional bond with Tenancy Services within 23 working days of receiving it. Both the landlord and tenant should be aware of their bond obligations at the time of renewal to avoid any unintentional breach of the Residential Tenancies Act 1986.

A well-drafted New Zealand Lease Renewal Agreement must address all the key elements necessary to formally extend the tenancy and provide clarity on the terms of the renewed arrangement.

The parties and property section must correctly identify the landlord and all tenants by their full legal names, with current contact details including email addresses and phone numbers. The landlord's address for service of notices under the Residential Tenancies Act 1986 must also be included. The property must be described by its full street address, including suburb, city, and postcode, and the type of premises should be noted for clarity.

The renewal term section is the heart of the document and must specify whether the renewed tenancy is for a new fixed term or is converting to a periodic arrangement. The commencement and end dates of the renewal must be clearly stated. If the tenancy is converting to a periodic arrangement, this should be noted expressly, and both parties should be aware of the notice periods applicable to periodic tenancies under the Residential Tenancies Act 1986 — 21 days for the tenant and 90 days for the landlord.

The rent section must state both the previous rent and the new rent amount, the payment frequency (weekly, fortnightly, or monthly), and the payment method. If the rent is increasing, the renewal agreement must have been provided to the tenant at least 60 days before the new rent takes effect, as required by section 24 of the RTA. Rent may only be increased once every 12 months. The landlord must not require more than two weeks' rent in advance at any time.

The bond section must address the status of the existing bond held by Tenancy Services. If the new rent is higher and the existing bond is less than four weeks of the new rent, a bond top-up should be specified. The maximum bond is four weeks' rent under section 19 of the RTA. Any bond top-up must be lodged with Tenancy Services within 23 working days of receipt.

The Healthy Homes Standards confirmation is mandatory and the landlord must affirm that the property continues to meet all five standards throughout the renewal period. This is a legal requirement under the Healthy Homes Guarantee Act 2017 and the Residential Tenancies (Healthy Homes Standards) Regulations 2019.

The incorporation of original terms clause should confirm that all terms of the original tenancy agreement continue to apply during the renewal period, except as modified by the renewal agreement. This avoids the need to restate all original terms and confirms continuity of the parties' obligations.

The additional or modified terms section (if applicable) should clearly set out any changes to the tenancy conditions being introduced at renewal — such as new pet approvals, updated utility arrangements, or specific landlord obligations. All additional terms must comply with the Residential Tenancies Act 1986.

Finally, the renewal agreement must be signed by both the landlord and all tenants, with signature dates recorded. Both parties should retain a signed copy of the renewal agreement for their records. The forms-legal.com Lease Renewal Agreement (New Zealand) provides a ready-to-use template that meets New Zealand legal requirements.