Building and Construction Minister Shane Jones will this week introduce the Residential Tenancies Amendment Bill to Parliament, which proposes sweeping changes to tenancy laws, including making it a civil offence to be a bad neighbour.

In details released to The Press, Jones said tenant breaches, such as over-populating the premises or becoming a problem neighbour, could be subject to exemplary damages, as an alternative to eviction.

Other changes included the scrapping of letting fees and the extension of the act to cover boarding houses and some rented retirement accommodation.

A tenant's liability for damage to their rental home also would be limited to four weeks' rent if the Tenancy Tribunal was satisfied they did not cause the damage intentionally or recklessly.

New Zealand Property Investors' Federation president Martin Evans said where the money from the proposed fines for being a bad neighbour went would be crucial.  He was also concerned about the change that limited liability for damage to a property to four weeks rent.

An alternative was to require tenants to take out compulsory insurance, Evans said.

Jones said the changes would improve the relationship between tenants and landlords.

Jones said it was important to update the Act because more people, particularly older people and families with children, were renting, and they were often renting for longer.

There were also more "ma and pa" landlords buying into the residential property market as an investment.