Review for rentals to start

File photo. Stuff

The Government is proposing a suite of rental law changes, including a limit on rent increases, an end to no-cause terminations, and a ban on so-called 'rent bidding.”

Housing Minister Phil Twyford has launched a discussion paper for consultation with a set of proposals aimed at increasing security for tenants.

The policies mostly mirror Labours election policies.

They would limit rent increases to once per year, up from once every six months.

Landlords could also be required to include a formula for any rent increases in tenancy agreements, giving tenants transparency about how increases might be calculated.

An end to ‘no-cause' evictions is also on the table.

Currently landlords can kick tenants out with no reason with a 90 day notice, or with a set reason like late rent or that they are selling the property with 42 days notice.

One of the proposals would end those no-cause terminations and raise the notice period of with-reason evictions to 90 days.

Phil says landlords would still be able to evict ‘rogue tenants' damaging the property, not paying rent, or engaging in ‘anti-social behaviour'.

The reforms would also make it much easier for tenants to own pets, with landlords possibly required to give a reason why a pet is not allowed.

This would still let landlords ban possibly disruptive or damaging pets, but would give tenants more even footing if they wanted to argue their case.

Two options are being considered to end so-called ‘rent bidding' – where prospective tenants offer to pay more rent in order to secure a property.

One would prohibit landlords from asking for rental bids while the other would prohibit landlords for asking and even accepting unprompted bids from tenants.

Boarding houses would also see greater regulation, with a licensing scheme proposed.

Phil says it was a ‘small minority' of landlords giving the whole sector a bad name but rental law reform was still needed.

'I don't think it's going to punish anyone, it's about modernising,” says Phil.

He says New Zealand rental laws, which date back to 1986, are some of the most archaic in the world.

Phil says he didn't expect rents to increase thanks to the reforms, and had studied experiences in other countries to prove this.

The reforms are unlikely to become law before mid-2020.

The Government is consulting for eight weeks on the proposals.

These reforms come on top of a law currently in Select Committee that would ban letting fees.

Renters United organiser Robert Whitaker says the changes of greatest significance were those improving security of tenure. "I think renters' biggest problem is that they don't feel secure. Fixed-term contracts have become increasingly popular in Auckland, Wellington and Christchurch, which has caused a lot of stress and insecurity.

"They should become rarer and become available only for legitimate reasons, like a fixed-term employment contract."

"It's about constant turnover for the property manager or landlord, which can be stressful to the renter".

Whitaker says the group would be making submissions in the consultation process, particularly lobbying for the regulation of property managers.

"Property managers are an important part of the property sector. Why are they excluded from regulation?"

-Stuff

2 comments

Really?

Posted on 27-08-2018 18:12 | By overit

Time to sell the rental. I am a good landlord but I wont be screwed over by the Govt. If I dont want pets so be it. For good landlords we have to take the risk.


About

Posted on 27-08-2018 18:39 | By Merlin

Time.There should also be something stronger on the condition of the properties.


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