A bunch of rental law changes have been proposed by the Government to protect tenants. But what are these changes and how are you effected by them as landlords?

Some Of The Main Proposed Changes To Take Place:

1. Stricter laws in place when it comes to evicting tenants
2. Rent changes to be made annually
3. Increase in penalties for landlords not meeting standard criteria
4. Tenant can make changes to property with little or no say from the landlord

Lets take a closer look

1. Stricter laws in place when it comes to evicting tenants.

Periodic Tenancies

Currently to end a periodic tenancy the landlord provides the tenant with 90days notice and is not required to provide any reasoning for terminating the tenancy. This is called no-cause termination of tenancy. A landlord must provide the tenant 42days notice if they are looking to sell or move a family member into the property.

With the proposed new law in place landlords may not be able to terminate a tenancy without sufficient cause or reason, making it much harder to evict tenants. Some suitable reasons for evicting a tenant could be property renovation, change in use of the property, tenant shows anti-social behaviour or has been 5days late with rental payments on 3 separate occasions.

The landlord can still end the tenancy if they wish to sell the property however will now be required to provide 90days notice instead of 42days.

Fixed Term Tenancies

Now when its coming up to the end of a fixed-term tenancy the landlord and tenant must come to an agreement together as to what happens next. They may come to an agreement to extend or renew the tenancy instead of terminating it.

With the law change the tenant will have more say in the decision and could demand to stay.

2. Rent changes to be made annually

Currently rent changes can be made on a 6monthly basis. With the proposed law rent changes would only be allowed to be made once a year. This is to give the tenants more stability within their tenancy with less changes being made.

3. Increase in penalties for landlords not meeting standard criteria

At the moment the Tenancy Tribunal can charge fines of up to $50 000 against the landlord. With the law changes in place this figure is set to double to $100 000. This is to ensure housing health and safety standards are met.

4. Tenant can make changes to property with little or no say from the landlord

At present the landlord needs to give consent if the tenant wishes to make any changes to the fixtures in the property. The changes will give tenants more freedom to make minor changes to the property such as baby proofing, hanging pictures, installing brackets to secure furniture in turn making the property more safer and liveable.

What do these changes mean for landlords?

If these changes do go ahead, the law will shift strongly in favour of the tenants. The chances of these laws being approved depend on how firmly the landlord campaign oppose these changes. Depending on the outcome the proposed laws may be stopped or weakened in favour of the landlords.

Landlords have less of a say when it comes to certain issues regarding tenancy. Tenants will be given more rights which makes it more difficult for the landlord to make changes to tenancies on demand. These proposed changes will be discussed by the Government and due to be announced mid-2020.


Attention Landlords Deadline Approaching

The compliance with all tenancy laws is mandatory for all the rental properties in New Zealand as of July 2019. The ceiling and underfloor insulation are compulsory according to the new standards of TCIT (Tenancy Compliance and Investigation Team).

The insulation for walls is not under consideration according to TCIT standards. It is important for every landlord to follow the new standards and enforce the changes quickly. There will be zero tolerance regarding the enforcement of the policy for the landlords.

It is better to avoid the fine of $4000 for the rental property and meet the standards before the deadline which come into effect in July 2019. It is best to implement these changes for your rental properties sooner than later to avoid these hefty fines.

There are insulation professionals who can help you to achieve these standards. They are available at an affordable price and can complete the task before the deadline.

How to ensure the compliance with insulation of the rental property?

The landlord needs to provide proof of insulation instalment with meeting the R value at minimum level:

For Timber Framed Homes:
The ceiling should be R 1.9 whereas, for the underfloor, it needs to be R 0.9
For Masonry Homes:
Ceiling should be R1.5, and for the underfloor, it should be R 0.9
If there is any part of the house which is not under insulation, them it needs to be according to the new standards before the deadline.
For the Auckland, New Zealand location, if there is no insulation in the house as of July 2016 then it is important to meet the standards of Zone 1 levels:
The ceiling should be R 2.9, and for the underfloor, it needs to be R 1.3
If the property is at these levels, then it needs to be according to the new standards and policies by July 2019.

If it is a concrete slab or apartment as a rental property then you may be exempt from the new standards. You need to provide written confirmation regarding the exemption from a professional and qualified insulation expert or get the confirmation from the Body Corporate if you have an apartment.
Statement for Insulation New Standards after July 2016

The insulation statement needs to have the exact information regarding the type of property, location and condition. It is a recommendation to get the statement certification from ac qualified and professional insulation expert.

Reliance Property Management Services

With the help of a reliable property management company such as Reliance Property Management, you can invest in the knowledge and experience required to meet the changing standards. Reliance Property Management provides creative solutions to help landlords maximise profits on their investment and keep up to date with all current tenancy laws, news and changes, to keep our landlords better informed.

Insulation Statement Experts

The experts know how to make the insulation statement certificate perfectly without any errors for the submission. They are aware of the main elements which need to be there for the successful clearance from the TCIT in New Zealand.

Short Term Management

Section 16A of the Residential Tenancies Act legally requires that a landlord appoints a New Zealand based agent and notifies their tenants (and the Department of Building and Housing, if a bond is held) if they leave New Zealand for more than 21 consecutive days.