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Changes to RTA announced

The Government announced its long awaited tenancy law reforms on Sunday and they mean that landlords will no longer be able to get rid of tenants without reason.

Sunday, November 17th 2019, 2:14PM 3 Comments

by The Landlord

Associate Minister of Housing (Public Housing) Kris Faafoi says that both renters and landlords will benefit from the suite of practical changes to the Residential Tenancies Act.

The changes sit alongside the Government’s previous reforms to renting, including the banning of letting fees and the Healthy Homes Guarantee.

The key changes include:

  • Limit rent increases to once every 12 months and banning the solicitation of rental bids by landlords.
  • Improve tenant’s security by removing a landlord’s right to use no cause terminations to end a periodic tenancy agreement.
  • Making rental properties safer and more liveable by letting tenants add minor fittings such as brackets to secure furniture against earthquake risk, to baby proof the property, install visual fire alarms and doorbells, and hang pictures.
  • Improve compliance with the law by increasing financial penalties and introducing new tools to take direct action against parties who are not meeting their obligations.

“With more and more people renting, the law should provide enough security to responsible renters to put down roots in their community,” Faafoi says.

“Greater security of tenancy and less regular rent increases, coupled with the ability to make minor improvements, mean renters will be better placed to make their house a home.

“One third of all New Zealanders now rent and the previous Government neglected this new reality for nine years. I’ve heard horror stories of families forced to continually move house, damaging their children’s education by constantly changing schools.

According to Faafoi, the changes are balanced and provide certainty to both renters and landlords about their respective roles and responsibilities.

“We understand that landlords require clear guidelines, which help them protect their investment and assist them in their dealings with difficult tenants and the law ensures this. If a tenant acts irresponsibly there can be repercussions.

“These reforms deliver on the Coalition Government’s promise to address out-dated rules for rental accommodation and are part of our plan to improve wellbeing for many New Zealanders who rent their homes. They complete the package of rental market improvements - which include the banning of letting fees and the introduction of the healthy homes minimum standards - planned for the Coalition Government’s first term."

However, the NZ Property Investor Federation is not happy with the changes. NZPIF executive officer Andrew King says they do more than punish landlords - they will punish anyone living next to a tenant with antisocial behaviour.

NZPIF research shows that only 3% of tenants receive a 90-day notice each year and that nearly half of these notices are for antisocial behaviour affecting neighbours. That equates to approximately 7,000 tenants causing problems for up to 70,000 households around New Zealand.

As a result of the announced changes, Government has tried to provide a tool for landlords to manage tenants with antisocial behaviour, but it requires neighbours to put themselves at risk of retaliation from their antisocial neighbours, King says.

"Currently the landlords of any of these 7,000 badly behaving tenants can efficiently end these tenancies without involving the neighbours or the Tenancy Tribunal, by issuing a no cause 90 day notice.

"If these changes go through, neighbours will have to provide three notices to the landlord before the landlord can apply to the Tenancy Tribunal for permission to end the tenancy. The neighbours will need to put themselves at risk by providing the landlord with proof of the antisocial behaviour. If neighbours don’t want to do this, landlords cannot move their tenants on and it is the affected neighbours who will have to move."

The tenancy law reforms will be drafted up in a Bill to amend the Residential Tenancies Act , which will be introduced to Parliament in the first part of next year. More information on the reforms can be found here.

Read more:

Comment: the truth about tenancy terminations

Bad behaviour behind most 90-day notices


Tags: healthy homes housing market housing shortage landlords property investment property management rental market rental returns rents tenancy reform Tenancy Services Tenancy Tribunal tenants

« ComCom warning for property traderKey reform will only protect bad tenants »

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Comments from our readers

On 18 November 2019 at 11:36 am Garrick said:
Just another left wing attempt to introduce changes which will result in less rental properties being available for rent. The Lanour led Coalition Government are determined to demolish the private rental industry so that they can rent more state houses which on present indications will never be built.
On 18 November 2019 at 7:11 pm 1133 said:
So, the Landlord supplies a rental, newly refurbished interior ( repainted) etc. and gets it back 2-3 years later after the present tenants move out, and its walls are full of holes where pictures etc. were hung ( not to mention the failed holes, because the tenant does not know how to put holes I the right places) WHO PAYS TO FIX THE MESS !! I can see some special 'return rental to original condition' clauses being added. Maybe that will be illegal, so the Landlord will carry the refurbishment costs ? I think our Rental will get sold !! so we do not have to worry about tenants and their new 'Rights'
On 19 November 2019 at 7:20 pm simont23 said:
As someone else said, " If taxes were 99%, we'd find a way". It is the same with rental properties. A higher and higher percentage of Kiwis are refusing to put themselves in a position to buy their first house, so the demand for rental properties is only going to grow. So in spite of populist, vote buying politicians trying to, "get tough on landlords", now is the time to buy rentals, as I am doing, as we will find a way, in spite of him, and others like him.

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Lender Flt 1yr 2yr 3yr
AIA 6.35 5.25 5.45 5.99
ANZ 6.34 5.59 6.05 6.29
ANZ Blueprint to Build - - - -
ANZ Special - 4.99 5.45 5.69
ASB Bank 6.35 ▼4.99 5.45 5.69
Avanti Finance 6.65 - - -
Basecorp Finance 7.25 - - -
Bluestone 6.89 - - -
BNZ - Classic - 4.95 5.39 5.69
BNZ - Mortgage One 6.39 - - -
BNZ - Rapid Repay 6.39 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 6.39 5.55 5.99 6.29
BNZ - TotalMoney 6.39 - - -
CFML Loans 7.25 - - -
China Construction Bank - 5.35 5.80 5.99
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼4.89 - -
Co-operative Bank - Owner Occ 6.25 ▼4.99 5.39 ▼5.69
Co-operative Bank - Standard 6.25 ▼5.49 5.89 ▼6.19
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 5.35 5.85 -
Heartland Bank - Online 4.60 ▼4.79 5.29 5.39
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.50 5.60 6.00 -
HSBC Premier 6.34 5.09 5.34 5.59
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 6.00 ▼4.79 5.15 ▼5.69
Kainga Ora 5.85 5.31 5.58 5.97
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 6.00 5.95 6.45 6.79
Kiwibank - Offset 6.00 - - -
Kiwibank Special - 4.95 5.45 5.89
Liberty 4.84 - - -
Lender Flt 1yr 2yr 3yr
Nelson Building Society ▲6.95 5.55 6.15 -
Pepper Money 5.29 - - -
Resimac 5.59 6.54 6.44 6.98
SBS Bank 6.29 ▼5.39 ▼5.79 5.99
SBS Bank Special - ▼4.89 ▼5.29 5.49
Select Home Loans 6.89 - - -
TSB Bank 7.05 ▼5.65 6.09 6.39
TSB Special 6.25 ▼4.85 5.29 5.59
Unity 5.65 4.95 5.55 -
Wairarapa Building Society 6.49 5.55 6.15 -
Westforce credit union - Special - 5.35 5.85 -
Lender Flt 1yr 2yr 3yr
Westforce credit union - Standard 5.85 6.05 6.55 -
Westpac 6.39 ▼5.55 6.05 ▼6.29
Westpac - Offset 6.39 - - -
Westpac Special - ▼4.95 5.45 ▼5.69
Median 6.34 5.33 5.79 5.93

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