March 2025 RTA Changes: What Every Landlord Needs to Know

Change is coming. Again.

The next batch of Residential Tenancies Act (RTA) amendments takes effect on 20 March 2025, with a mix of practical tweaks, long-overdue clarifications, and some eyebrow-raising fine print. If you’re a landlord, property manager, or investor, now’s the time to get ahead of the changes so you’re not caught off guard later.

Let’s break it down—what’s new, what’s important, and what you actually need to do.

No-Smoking Clauses Just Got More Bite

If you’ve ever had a tenant push back on a no-smoking clause, this change is for you. From 20 March, tenancy agreements that explicitly ban the use of smoked tobacco products (cigarettes, cigars, pipes) indoors will be enforceable in the Tenancy Tribunal.

✅ What’s allowed? You can still include clauses restricting the use of:
Vapes and other smokeless tobacco products
Medicinal marijuana
Smoked tobacco products outdoors
❗ But there’s a catch: Any restrictions beyond banning indoor smoked tobacco must be consistent with the RTA, particularly the tenant’s right to quiet enjoyment. Overly restrictive clauses could be challenged in the Tribunal, so it pays to get legal advice if you’re looking to set extra rules.

Family Violence Withdrawal: Broader Protection for Victims

Tenants experiencing family violence (or whose dependants are victims of family violence) can now withdraw from a tenancy with 2 days’ written notice—provided they supply a qualifying piece of evidence.

🏡 What happens to the rent?
For two weeks after withdrawal, rent is proportionally reduced to reflect the number of remaining tenants.
Example: If one out of two tenants leaves, rent reduces by 50% for two weeks. If one out of three leaves, rent drops by 33.33%.

⚠️ What landlords need to know:
The Tenancy Tribunal has no jurisdiction to determine whether a tenant is a victim or assess the quality of the evidence—so challenges won’t hold up in the Tribunal.
If the withdrawing tenant returns (i.e. to the abuser), they will likely be considered an occupant rather than a tenant unless they are formally reinstated onto the tenancy agreement.
Occupants are not protected by s56B, meaning future exits won’t trigger another rent reduction.

This rule is here to protect tenants in difficult situations, and landlords should be aware of their obligations while balancing business needs.

Rent Reduction Orders – Tribunal Can Now Cap Rent at 12 Months

The Tribunal will now cap rent reduction orders at a maximum of 12 months.

🏡 Why does this matter?
Setting rent correctly from the start is now more important than ever.Some rental markets are softening, so overpricing could leave you stuck with a Tribunal-mandated rent reduction.
Just because you can raise rent once a year doesn’t mean you should.

A savvy landlord knows that strategic rent setting—like delaying an increase to retain a great tenant—can be a smarter long-term move than chasing marginal gains. If you haven’t already, it’s time to rethink how you adjust rent.

Tribunal Can Decide Some Cases on Paper – But Not All

The Tribunal is speeding up some processes by allowing certain disputes to be resolved without a hearing—based on submitted evidence alone.

⚠️ Exceptions:
If a case involves termination or a landlord’s right of entry, a hearing (in person or via video link) is still required.
Note the expedited abandonment process remains unchanged.

This change means that documentary evidence is now more important than ever. The bar for well-prepared applications will be higher, so landlords should document everything carefully when submitting disputes.

Serving Notices Just Got More Digital – But Be Careful

You can now serve notices via instant messaging apps—but only if the app is listed as an official address for service in the tenancy agreement.

⚠ Be picky. Not all messaging apps are appropriate for tenancy management.
✅ Make sure your chosen platform logs messages properly and provides timestamps.

Great news for landlords who like efficiency, but a recipe for disaster and unnecessary headache if you get it wrong.

Using an Old Email Address as an Address for Service

📧 Email addresses listed in tenancy agreements will remain valid as an address for service for up to 2 years after a tenancy ends.

Even if the tenancy ended more than 2 years ago, an email address (not listed on the tenancy agreement) may still be used in a Tribunal application if:
✔️ The tenant supplied it in writing
✔️ The tenant previously used it to communicate with the landlord

This update helps ensure that former tenants remain contactable for disputes or outstanding matters.

Tribunal Jurisdiction Clarified – $100k Limit Applies Per Tenancy

The $100,000 jurisdictional limit for the Tribunal now applies separately to each tenancy—not to a single application covering multiple tenancies.

Why does this matter? If you’re dealing with multiple disputes across different tenancies, you won’t get caught by an artificial cap.

This latest round of changes is more refinement than revolution, but they do reinforce some key principles:

🔹 Set rent smartly – Market conditions dictate strategy. One rent increase a year isn’t always the best move.
🔹 Update tenancy agreements – No-smoking clauses are now enforceable, but think carefully before banning more than just smoked tobacco indoors.
🔹 Get your documentation in order – Tribunal decisions based on paperwork alone means your evidence needs to be rock solid.
🔹 Be mindful of digital communication – Instant messaging can be used for serving notices, but only if it’s done correctly.

The landlords who thrive in this environment aren’t just rule-followers—they’re rule-masters. Know the game, play it well, and stay ahead of the curve. Check out my full length presentation on the changes to the Residential Tenancies Act that will be rolled out in four distinct phases throughout 2024/2025.

Sarina Gibbon

Sarina Gibbon is the general manager of the APIA.