Information for landlords and tenants

10-year tenancy offer

Landlords must offer a 10-year tenancy agreement for a build-to-rent property. Tenants are not required to accept the 10-year term and can negotiate a shorter fixed-term or a periodic tenancy with regular rules applying to these tenancies.

Only tenants that agree to a 10-year build-to-rent tenancy can terminate the tenancy with 56 days’ notice.

Ending a build-to-rent 10 year tenancy

Personalisation clause as part of tenancy agreement

Landlords must include in the tenancy agreement how tenants can make changes to the property in accordance to the Residential Tenancies Act. Landlords must also include examples of possible changes which may include minor changes. Tenants are still required to make the request for changes to landlords in writing. Landlords must include their position on pets in the agreement.

Tenants making changes to the property

At the end of the tenancy, tenants are responsible to return the property to substantially the same condition it was in before the change was made, unless the landlord agrees otherwise.

Information for build-to-rent property owners

Build-to-rent excluded from interest limitation rules

New and existing build-to-rent developments are now excluded from the interest limitation rules.

For more information, including about the 20-year new build exemption, visit the Inland Revenue website.

Property interest limitation rules(external link) — Inland Revenue

Eligibility for exclusion

To be eligible for the exclusion from the interest limitation rules, a property must meet the requirements as outlined in the Income Tax Act 2007. These include:

• 20 or more dwellings on a single block or adjacent blocks, held in one or more titles
• owned by the same person (or legal entity)
• each dwelling is being prepared for use, available, or occupied under a residential tenancy
• tenants must be offered a 10-year tenancy with the ability for the tenant to give 56 days’ notice of termination. Tenants have the right to propose a fixed term or periodic tenancy for a shorter period
• every tenancy agreement includes a personalisation policy.

Applying for the exclusion

You can apply for the exclusion on the Te Tūāpapa Kura Kāinga - Ministry of Housing and Urban Development website.

Application for the Built-to-rent Exclusion from Interest Limitation Rules(external link) — Ministry of Housing and Urban Development

More information

Property interest limitation rules(external link) — Inland Revenue