tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, April 2nd, 10:34PM

News

rss
Latest Headlines

Tenant damage law change

Landlords could soon have better protection in cases of tenant damage if a new Bill passes into law – but an investor advocate argues it doesn’t go far enough.

Wednesday, May 24th 2017, 11:30AM

by Miriam Bell

NZPIF executive officer Andrew King

Meth contamination and tenant damage liability have been the two most difficult issues facing landlords over the past year.

The controversial Court of Appeal Osaki ruling which left landlords liable for accidental damage caused by tenants and a now notorious Tenancy Tribunal decision on the issue served to make matters worse.

In response to the fallout, the government started consulting on potential law changes to address the issue.

That process has culminated in the introduction of the Residential Tenancies Amendment Bill (No. 2) into Parliament.

Building Minister Nick Smith said the Bill implements changes regarding liability for careless damage which arose from the Osaki decision.

“Under the Bill, tenants will be liable for the cost of their landlord’s insurance excess up to a maximum of four weeks’ rent for each incident of damage caused by carelessness.

“A tenant remains fully liable where the damage is deliberate or a criminal act, and the landlord liable for fair wear and tear and damage beyond the control of the tenant, like a natural disaster.”

Smith said the changes are needed to ensure that tenants have an incentive to take good care of a property and for the landlord to have appropriate insurance.

However, the NZ Property Investors Federation feels the Bill could go further.

NZPIF executive officer Andrew King said they were pleased some action is being taken to ensure tenants were held responsible for accidental damage to rental properties.

“But the general principle of the Bill is that tenants are still not liable for accidental damage they cause and this is very disappointing.

“Under the Bill, if tenants cause any damage to their rental property, they will only be liable for the cost of their landlord’s insurance excess up to a maximum of four weeks’ rent for each incident of damage.”

King said that if a landlord’s insurance company and the Tenancy Tribunal can’t agree on how many incidents of damage are involved, a landlord might still be liable for a majority of the cost for their tenant’s damage.

The NZPIF is also concerned that the Bill talks about careless damage, he said.

“This means tenants may not be accountable for any accidental damage they cause. Deciding what is accidental and what is careless damage could be very problematic.”

King said the simplest solution would be to return the whole issue of tenants’ liability for damage back to how it was before the court ruling.

Along with the changes relating to tenants’ damage liability, the Bill also includes provisions to aid better management of meth contamination and the tenancy of unsuitable properties like unlawfully converted garages or industrial buildings.

Smith said that, under the Bill, landlords will have easier access to test for meth and tenants will be able to terminate their tenancy if it presents at unsafe levels.

“This Bill recognises that meth contamination of properties has become a significant issue that needs clearer direction. We want homes to be safe but we also don’t want properties being vacated when the risks are low.”

It will also ensure that the contamination thresholds in the new meth testing and remediation standard, which is due out around June, are legally recognised and enforceable before the Tenancy Tribunal.

Smith said the Bill will provide better protection and clarity for tenants and landlords and will help the residential tenancy market function more effectively.

Read more:

Tenants could face limited liability for some damage 

More clarification on tenant damage needed 

Eagerly awaited meth standard delayed 

« Auckland rental market under pressureRents will rise - Greens »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Advisers 'will drop out'
    “@gavin austin - actually our focus is on getting Advisers to ask their existing customers "What can we do to help you?"...”
    7 hours ago by Andrew Scott GM Newpark
  • Advisers 'will drop out'
    “Interesting comments Andrew. I take it from your comment about Dgs being worth their salt that you've provided your members...”
    9 hours ago by gavin austin adviser business compliance
  • AML flexibility offered
    “AML flexibility is great and well received. What are the law society and the JP organisation doing to find ways to reduce...”
    11 hours ago by Tony Walker
  • Advisers 'will drop out'
    “@Fred Dodds - with respect, focusing on your Level 5 qualification, or for that matter your transitional FAP licence, is...”
    13 hours ago by Andrew Scott GM Newpark
  • Covid withdrawals possible 'but not always desirable'
    “Very few of us have any idea what facing homelessness and potentially starvation (literally and figuratively) is like. As...”
    14 hours ago by Chris Hardcastle
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.55 3.89 3.99
AIA Special - 3.05 3.39 3.69
ANZ 4.44 3.55 3.85 4.49
ANZ Special - 3.05 3.35 3.99
ASB Bank 4.45 3.55 3.89 3.99
ASB Bank Special - 3.05 3.39 3.69
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 3.09 3.35 3.69
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.75 4.10 4.55
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.15 3.15 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 ▼2.95 ▼3.09 ▼3.50
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 3.94 4.08 4.39
Kiwibank 4.40 3.84 4.14 4.40
Kiwibank - Capped - - - -
Kiwibank - Offset 4.40 - - -
Kiwibank Special - 3.09 3.39 3.65
Liberty 5.69 - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society - - - -
Nelson Building Society 4.95 ▼4.09 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.45 3.89 3.94
RESIMAC Special - - - -
SBS Bank 4.54 4.85 5.05 5.49
SBS Bank Special - ▼3.09 ▼3.39 ▼3.69
The Co-operative Bank - Owner Occ 4.40 3.25 3.45 3.69
The Co-operative Bank - Standard 4.40 3.75 3.85 4.19
Lender Flt 1yr 2yr 3yr
TSB Bank 5.34 ▼3.89 ▼4.15 ▼4.49
TSB Special 4.54 ▼3.09 ▼3.35 ▼3.69
Wairarapa Building Society 4.99 3.95 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 3.09 3.39 3.69
Median 4.60 3.65 3.89 3.99

Last updated: 31 March 2020 8:55am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com