Understanding the difference between a tenant, a flatmate, and a boarder is critical for anyone managing rental properties or working in frontline housing roles in New Zealand. The Residential Tenancies Act 1986 (RTA) does not apply to all living arrangements, and getting it wrong can lead to costly disputes, penalties, and compliance failures. This guide covers the key distinctions, notice requirements, bond rules, and head tenant responsibilities, with exact section references for the RTA and relevant regulations.
Tenant vs Flatmate vs Boarder – When Does the RTA Apply?
The RTA applies to a tenancy where a person has exclusive use of a rental property (or part of it) and pays rent to a landlord. A flatmate is someone who shares a rental property with a head tenant but does not have a direct relationship with the landlord. A boarder receives accommodation and at least one meal from the person providing the accommodation (s 5, RTA).
Key rule: The RTA does not apply to flatmates or boarders. Only the head tenant (or landlord) has a tenancy agreement covered by the RTA. Flatmates and boarders have fewer statutory protections and must rely on their agreement with the head tenant or the general law (e.g., contract law, the Property Law Act 2007).
For frontline staff: if a person is sharing a kitchen, bathroom, or living area with the landlord or head tenant, they are likely a flatmate or boarder, not a tenant. If they have exclusive use of the entire property (e.g., a self-contained granny flat), the RTA may apply.
Fixed-Term vs Periodic Tenancies – What Changes for Flatmates?
For tenants under the RTA, a fixed-term tenancy ends on the agreed date without notice (s 51), while a periodic tenancy requires 21 days’ notice (s 51(1)(c)). For flatmates, there is no statutory minimum notice period unless specified in a written agreement. The common law requires reasonable notice, which is typically 14–21 days, but can be shorter if the flatmate is paying rent weekly.
Warning: If a flatmate has been living in the property for more than 28 days and the head tenant does not have a written agreement, the flatmate may be treated as a tenant under the RTA if they have exclusive use of a room and the head tenant does not live there. This is a common trap for head tenants who sublet without understanding the law.
Bond Rules – When and How to Lodge
Under the RTA, a landlord must lodge a bond with the Ministry of Business, Innovation, and Employment (MBIE) within 23 working days of receiving it (s 19(1)). The maximum bond is four weeks’ rent (s 19(2)). For flatmates, there is no legal requirement to lodge a bond with MBIE, but the head tenant must still handle the money responsibly. If the flatmate pays a bond, the head tenant should hold it in a trust account and provide a receipt. Disputes over bond refunds are not covered by the Tenancy Tribunal; they must be resolved through the Disputes Tribunal or by agreement.
Key rule: If a head tenant collects a bond from a flatmate and the flatmate later claims they are a tenant (e.g., because the head tenant moved out), the head tenant could be liable for failing to lodge the bond. Always document the arrangement in writing and specify that the RTA does not apply.
Head Tenant Responsibilities
The head tenant is the person who signs the tenancy agreement with the landlord. They are responsible for:
- Paying rent to the landlord on time (s 40).
- Ensuring the property meets the Healthy Homes Standards (NZS 8134:2021, standards 2.7 for heating, 3.1 for insulation, 4.1 for ventilation, 5.1 for moisture ingress, and 6.1 for draught stopping).
- Not subletting without the landlord’s written consent (s 44(1)).
- Managing flatmate disputes and ensuring flatmates comply with the tenancy agreement.
- Giving the landlord access for inspections (s 48) and repairs (s 45).
If the head tenant sublets without consent, the landlord can terminate the tenancy (s 44(2)). For frontline staff: always check the original tenancy agreement before allowing a flatmate arrangement.
Notice Requirements for Flatmates
Because the RTA does not apply, notice periods for flatmates are governed by the agreement or common law. A written flatmate agreement should specify the notice period (e.g., 14 days). If no agreement exists, reasonable notice is required. In practice, 14 days is considered reasonable for a weekly-paying flatmate, but 21 days is safer for monthly arrangements. The head tenant cannot evict a flatmate without notice, even if the flatmate is not paying rent – they must follow the contract or seek a court order.
Warning: If a head tenant locks a flatmate out or removes their belongings without notice, they may be liable for trespass or conversion. The flatmate can apply to the Disputes Tribunal for compensation.
For more detailed guidance on handling flatmate disputes or checking your policies against current law, staff can ask ShiftScript questions from uploaded policies at shiftscript.nz/portal/.
Frequently Asked Questions
Can a flatmate be evicted immediately?
No. Even though the RTA does not apply, a flatmate has rights under contract law. The head tenant must give reasonable notice (usually 14–21 days) unless the flatmate has breached a serious term (e.g., causing damage). Immediate eviction is only possible with a court order.
Does the Healthy Homes Standards apply to flatmates?
Yes, if the property is rented to a tenant under the RTA. The head tenant is responsible for ensuring the property meets the standards (NZS 8134:2021). Flatmates benefit from these standards indirectly, but the head tenant must comply with the landlord’s obligations.
What happens if a flatmate stops paying rent?
The head tenant must still pay the landlord. The head tenant can give the flatmate notice to vacate (as per the agreement) and then pursue the unpaid rent through the Disputes Tribunal. The head tenant cannot deduct from the flatmate’s bond without agreement or a tribunal order.
Can a landlord ban flatmates?
Yes, if the tenancy agreement prohibits subletting or flatmates without consent (s 44). The head tenant must get the landlord’s written permission before allowing a flatmate to move in. If the landlord unreasonably withholds consent, the head tenant can apply to the Tenancy Tribunal.
Is a written agreement required for flatmates?
No, but it is strongly recommended. A written agreement clarifies the terms (rent, notice period, bond, chores) and reduces disputes. The agreement should state that the RTA does not apply and that the flatmate is not a tenant.
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