Rent arrears are one of the most common compliance issues for New Zealand landlords and property managers. Under the Residential Tenancies Act 1986 (RTA), the rules are strict — and getting them wrong can delay eviction or lead to penalties. This guide covers what counts as arrears, when you can act, and the three main legal pathways: 90-day notice, Tenancy Tribunal application, and the 3-day notice for repeat arrears (s55B).
What Counts as Rent Arrears?
Rent arrears means the tenant has not paid the full rent due on the date it was payable under the tenancy agreement. Partial payments count as arrears for the shortfall. Under s24(1) of the RTA, rent is payable in advance unless otherwise agreed. A tenant is in arrears if any amount remains unpaid after the due date.
How Far Behind Triggers Action?
The RTA sets clear thresholds:
- Less than 21 days arrears: You can issue a 14-day notice to remedy (s49(1)(a)). This is not an eviction notice — it gives the tenant 14 working days to pay. If they pay within that time, the notice lapses.
- 21 days or more arrears: You can issue a 90-day notice to terminate (s51(1)(a)). This does not require a prior notice. The tenant must vacate at the end of the 90-day period unless they pay all arrears before the notice expires.
- Repeat arrears (3 or more within 90 days): You can issue a 3-day notice under s55B. This applies if the tenant has been in arrears at least three times in the previous 90 days, regardless of the amount. The notice gives the tenant 3 working days to pay the current arrears or vacate.
Landlord Options: Step-by-Step
1. 90-Day Notice (s51)
This is the most common pathway for rent arrears. You must give the tenant a written notice stating the tenancy will end in 90 days. The notice must specify the arrears amount and the date the tenancy ends. Serve it personally or by post (s137). If the tenant pays all arrears within the 90 days, the notice is cancelled. If they don’t, you can apply to the Tenancy Tribunal for a possession order after the 90 days.
2. Tenancy Tribunal Application
If the tenant does not vacate after a 90-day notice, you can apply to the Tenancy Tribunal for an order terminating the tenancy and requiring the tenant to pay arrears. You must file within 10 working days after the notice expiry (s86(3)(a)). The Tribunal will consider the arrears history and any defences. If granted, the order gives the tenant a date to vacate — typically 5–10 working days.
3. 3-Day Notice for Repeat Arrears (s55B)
This is a faster option for tenants who repeatedly fall behind. You must have evidence of at least three separate arrears events in the previous 90 days. The notice must state the current arrears amount and give the tenant 3 working days to pay or vacate. If they don’t, you can apply to the Tribunal for a possession order without waiting 90 days. This is a powerful tool but requires accurate record-keeping.
Compliance Checklist
- Check the tenancy agreement for the rent due date and amount.
- Calculate arrears from the due date — include any partial payments.
- For 90-day notice: ensure arrears are 21+ days overdue.
- For s55B: confirm 3+ arrears events in the last 90 days.
- Serve the notice correctly — use the prescribed form (Form 9 for 90-day, Form 10 for s55B).
- Keep copies of all notices and proof of service.
- If tenant pays arrears within notice period, the notice is void — start again if needed.
- Apply to Tenancy Tribunal promptly if tenant does not comply.
For frontline managers and staff, getting these steps right is critical. If you’re unsure about a specific scenario — like whether a partial payment resets the 90-day clock — your team can ask ShiftScript questions directly from your uploaded policies. ShiftScript uses your own documents to give instant, accurate answers.
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Frequently Asked Questions
Can I issue a 90-day notice if the tenant is only 14 days behind?
No. Under s51(1)(a), the arrears must be at least 21 days overdue. For arrears under 21 days, use a 14-day notice to remedy (s49).
What if the tenant pays part of the arrears during the 90-day notice period?
Partial payment does not cancel the 90-day notice unless the full arrears are paid. The notice remains valid for the unpaid balance. However, if the tenant pays all arrears before the notice expires, the notice is void.
How do I count “three arrears events” for s55B?
Each separate occasion when rent is not paid in full by the due date counts as one event. For example, if rent is due weekly and the tenant misses three separate weeks, that is three events — even if the amounts are small. The events must occur within a 90-day period.
Can I use s55B if the tenant has only been late once but by a large amount?
No. s55B specifically requires three or more separate arrears events in the previous 90 days. For a single large arrears, use the 90-day notice (s51) or apply to the Tenancy Tribunal directly if the arrears are significant.
What happens if the tenant disputes the arrears at the Tenancy Tribunal?
The Tribunal will hear evidence from both sides. You must provide rent records, notices served, and proof of arrears. If the tenant claims they paid, they must provide receipts or bank statements. The Tribunal will decide based on the balance of probabilities.
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