Breaking Rental Agreement in New Zealand: What You Need to Know
Renting a property in New Zealand comes with its fair share of responsibilities and obligations for both tenants and landlords. Tenants sign a rental agreement that outlines the terms and conditions of their tenancy, including their duties and rights as a renter. However, there may come a time when tenants need to break their rental agreement due to unforeseen circumstances. In this article, we`ll discuss what breaking a rental agreement in New Zealand entails, the consequences of doing so, and how to minimize their impact.
What is a rental agreement?
A rental agreement, also known as a tenancy agreement, is a legal contract that outlines the terms of a tenancy between a tenant and a landlord. The agreement establishes the duration of the agreement, the rent amount, the payment schedule, the condition of the property, and other essential details. When a tenant signs a rental agreement, they become bound by its terms and must fulfill their obligations as a renter until the end of the agreement.
When is it acceptable to break a rental agreement?
Breaking a rental agreement is not a decision that should be taken lightly, as it can have serious consequences on a tenant`s financial and legal standing. However, there are some situations when it may be necessary to terminate a tenancy before the end of the agreement, including:
1. Severe financial hardship – If a tenant is experiencing financial difficulties and cannot afford to pay rent, they may need to break their rental agreement to avoid further debt.
2. Health reasons – If a tenant`s physical or mental health is compromised because of the living conditions, they may have to break their rental agreement to protect their well-being.
3. Domestic violence – In cases of domestic violence, tenants can break their rental agreement without penalty, as per the Residential Tenancies Act 1986.
What are the consequences of breaking a rental agreement?
Breaking a rental agreement can have severe financial and legal repercussions for a tenant. These include:
1. Losing the bond – When a tenant signs a rental agreement, they are required to pay a bond as a security deposit. If the tenant breaks the agreement, the landlord can withhold the bond to cover any unpaid rent or damages.
2. Paying for rent until the end of the notice period – If the tenant breaks the agreement by giving insufficient notice, they may be liable to pay rent until the end of the notice period, as stated in the agreement.
3. Negative reference – If a tenant breaks a rental agreement, this may affect their reputation and make it harder for them to find a new rental property in the future.
How to minimize the impact of breaking a rental agreement?
If a tenant needs to break their rental agreement, there are ways to minimize the impact of their decision. These include:
1. Communicating with the landlord – It`s essential to inform the landlord as soon as possible and explain the situation that led to the agreement being terminated.
2. Providing ample notice – Giving sufficient notice can help reduce the financial impact of breaking the agreement and may give the landlord time to find a new tenant.
3. Seeking legal advice – It`s recommended to seek legal advice from a specialist in tenancy law to understand the rights and obligations of both the tenant and the landlord in a rental agreement.
In conclusion, breaking a rental agreement in New Zealand is a serious matter that should not be taken lightly. Tenants must understand the consequences of their decision and take steps to minimize their impact. By communicating with their landlord, giving ample notice, and seeking legal advice, tenants can make informed decisions and protect their financial and legal standing.
