Build to Rent in New Zealand

Date: 14 Aug 2025

As housing markets evolve and urban populations grow, a new rental model is emerging in New Zealand: Build to Rent (BTR). Already well established in Australia, the UK, and the US, this model is gaining momentum locally as developers and investors seek long-term, income-stable assets—and tenants seek higher-quality, professionally managed living options.

Here’s what landlords and property professionals need to know about how Build to Rent works and how tenancies differ from standard residential rental agreements.

What is Build to Rent?
Build to Rent refers to purpose-built residential developments that are designed and constructed specifically for long-term rental, rather than being sold off as individual units. These developments are usually owned by a single institutional landlord—such as a property fund, developer, or government body—and operated with a focus on tenant experience, amenities, and service.

How Do Build to Rent Tenancies Work?
Build to Rent properties in New Zealand still fall under the Residential Tenancies Act 1986 (RTA) but offer unique structural and operational differences that benefit long-term tenants.

1. Secure 10-Year Rental Supply
One of the biggest advantages of BTR is that landlords are required to offer a 10-year rental supply, which ensures housing security for tenants. This means the property is committed to remaining in the rental market for a decade—providing tenants with peace of mind and long-term stability.

2. Flexible Fixed-Term Tenancies
Tenants are offered a 10-year lease at the outset, but they are not required to commit to the full term. For those who accept the 10-year lease, they retain the flexibility to end their tenancy at any time with 56 days’ notice. If tenants do not accept the 10 year lease and choose to enter into a standard fixed-term tenancy, the usual Residential Tenancies Act (RTA) process is followed, including annual renewals. 

3. Institutional Ownership and Management
Unlike traditional rentals, BTR properties are professionally managed by dedicated teams. This means tenants benefit from:

• Prompt maintenance
• Clear lease terms
• Professional support throughout the tenancy

These structural features combine to offer a more stable, service-oriented renting experience that’s designed with tenant needs at the centre.

Build to Rent offers a modern solution to long-standing challenges in the rental market. It combines security of tenure for renters with strong investment fundamentals for landlords. For tenants, the benefits are clear: stable, long-term rentals with the flexibility to move, access to better housing standards, and professional support—not to mention the peace of mind that comes with knowing your home won’t be sold out from under you.

As the rental landscape continues to shift, understanding Build to Rent is essential for anyone with a stake in the future of residential property.

At Harcourts Reforma, we are actively learning and engaging with this exciting new model of renting. Our team is committed to becoming experts in Build to Rent properties so we can guide landlords and tenants through this evolving space with clarity, confidence, and care.