New Pet Rules for Rentals: How the 2025 Changes Are Helping Landlords Reduce Vacancy

TL;DR

From 1 December 2025, the rules on pets in rentals changed. Tenants can request a pet, landlords can only refuse on reasonable grounds, and landlords can now charge a pet bond of up to two weeks rent on top of the standard bond. Most coverage framed this as a loss of landlord control. The smarter read: pet-friendly properties lease faster, hold tenants longer, and can command stronger rent in a market with a lot of pet-owning renters. This post covers the rules and the commercial upside.

The pet rule changes landed on 1 December 2025 and most landlords reacted defensively. That's the wrong instinct.

The rules do remove the blanket "no pets" position. They also give landlords financial protection that didn't exist before, and they open up a tenant pool that most investors were locking themselves out of.

What Actually Changed

From 1 December 2025, under the Residential Tenancies Amendment Act:

• Blanket pet bans are no longer enforceable

• Tenants can request consent to keep a pet

• Landlords can only refuse on reasonable grounds

• Landlords must respond to a request in writing within 21 days

• Landlords can charge a pet bond of up to two weeks rent, separate from the standard bond

• Tenants are liable for all pet damage beyond fair wear and tear

• Disability assist dogs are exempt and cannot attract a pet bond

Reasonable grounds to refuse include things like the property being unsuitable for the type or size of animal. It's a case-by-case assessment, not a personal preference.

The Commercial Case

Here's what the defensive landlords are missing.

A large share of renters own pets. Every "no pets" property is invisible to that entire pool. In a softer rental market with elevated listings, restricting your tenant pool is a direct cost.

Pet-friendly properties:

• Lease faster because they're visible to more applicants

• Attract longer tenancies because pet owners struggle to find rentals and stay put when they do

• Can command stronger rent because pet-friendly stock is relatively scarce

Lower vacancy and longer tenancies are worth far more than the perceived risk, especially now that the pet bond provides a financial buffer.

Worked Example

Property renting at $600 per week. One extra week of vacancy between tenancies costs $600 plus advertising and re-letting time. Two extra weeks costs $1,200.

A pet-friendly position that fills the property a fortnight faster, and retains the tenant an extra year, is worth several thousand dollars over a tenancy cycle. The pet bond (up to $1,200 on this rent) covers most realistic pet damage scenarios.

The maths favours saying yes, with a bond and clear conditions.

Managing the Risk Properly

Saying yes doesn't mean no controls. Sensible practice:

• Charge the pet bond every time

• Set written conditions on approval (carpet cleaning at end of tenancy, restrictions on type or number)

• Document the property condition thoroughly at the start

• Keep records, because Tribunal disputes turn on evidence

Done properly, the risk is managed and the upside is captured.

Where This Leaves You

The pet rules are a constraint if you treat them as one. They're an opportunity if you understand the rental market. Pet-friendly, well-documented, bonded tenancies reduce vacancy and lift retention.

Update your tenancy templates, set a clear pet policy, and stop treating the larger tenant pool as a threat.

Vacancy is one of the biggest hidden costs in a portfolio. It eats yield and it stresses serviceability, which feeds straight back into your borrowing position.

At CRISP, we look at the whole picture, including how rental performance affects your lending capacity. Lower vacancy is better cash flow, and better cash flow is more borrowing room.

Performance and finance are the same conversation.

Other relevant articles to check out:

 Healthy Homes

Sustainability Gap

About the Author:

Joshua Flack is a mortgage and lending adviser and the founder of Crisp Financial. Before finance, he spent two decades running businesses across construction, facilities services, and franchising, which is why his advice starts with how the numbers actually work rather than how the brochure says they should. He works with home buyers, investors, and self-employed borrowers across New Zealand, with particular depth in complex and non-standard lending. Crisp Financial Limited (FSP1012114) operates under the Link Financial Group FAP licence. The information in this article is general in nature and is not regulated financial advice.