RTA reforms pile pressure on landlords

After the Bill passed its first reading in Parliament last week, the Ministry of Housing & Urban Development (HUD) released the advice it gave to Associate Housing Minister Kris Faafoi on the proposed reforms.

In a regulatory impact statement, HUD said they recognise that some landlords consider that the package of tenancy initiatives under way will increase the risk to their business.

That’s because they will have more constraints on the reasons to end a tenancy and the exercise of termination notices may be more frequently tested at the Tenancy Tribunal once a reason is provided.

"This could affect landlord willingness to rent and the amount of rent charged and could lead to more stringent vetting of tenants.