As a landlord in New Zealand, it’s crucial to stay on top of what tenants can—and can’t—do with your rental property. One area that’s often misunderstood is subletting and assignment of tenancies. Can your tenant let someone else move in? Can they pass the lease on without your consent?

Let’s break it down clearly, so you can protect your investment and stay compliant under the Residential Tenancies Act 1986 (updated 2025).

What’s the Difference Between Subletting and Assignment?

Subletting is when your tenant lets someone else live in the property (or part of it) while retaining their own legal responsibility for the tenancy.

Assignment is when your tenant transfers the entire tenancy agreement to another person. The assignee becomes the new tenant and assumes full legal responsibility.

Do Tenants Need Landlord Approval?

Yes! Under Sections 43 and 44 of the Residential Tenancies Act:

Tenants must obtain the landlord’s written consent before subletting or assigning the tenancy.

Landlords cannot unreasonably withhold consent—but you can refuse based on valid concerns like:

• The proposed tenant’s rental history
• Overcrowding concerns
• Breach of property rules or insurance terms

Tips for landlords: Make sure your tenancy agreement clearly prohibits subletting without prior approval. This makes enforcement easier if issues arise.

What If a Tenant Sublets Without Consent?

If a tenant sublets or assigns the tenancy without your approval, this could be a breach of the tenancy agreement and potentially an unlawful act.

Landlords can:

• Apply to the Tenancy Tribunal to terminate the tenancy
• Seek compensation if there’s proven damage or financial loss

However, document everything before taking action—evidence is key if the matter reaches the Tribunal.

How to Spot an Unauthorised Sublet

Here are common red flags:

• New occupants you’ve never met
• Mail addressed to someone not on the lease
• Neighbours reporting unfamiliar tenants
• The original tenant “travelling” long-term

If in doubt, schedule a lawful inspection (with proper notice) to check for compliance.

Best Practices for Landlords

• Include subletting and assignment clauses in all tenancy agreements.
• Use a property manager (like Sole Agents) to monitor tenants and conduct regular inspections.
• Communicate clearly with tenants about what’s allowed.
• Keep records of all approvals and correspondence.

Subletting and assignment can open the door to complications if not handled properly. But with the right clauses, good communication, and an experienced property manager on your side, you can confidently maintain control of your property.

Need help navigating tricky tenancy issues?
📞 Contact Sole Agents today—we handle the hard stuff, so you don’t have to.