APIA Blog

RSS Feed

Summary of proposed changes to residential tenancy

Monday, November 18, 2019

On Sunday 17th November the Coalition Government announced a number of proposed amendments to the Residential Tenancies Act in accordance with the Labour Party's election manifesto. APIA Vice President Peter Lewis was present at the announcement and reports on the following substantive elements of the proposal: 

It is important to note that these proposals will need to be enacted into law and that this is unlikely to happen before May/June 2020.
Until then the existing RTA regulations still apply.

The current ability of landlords to issue a tenant who has a periodic tenancy agreement with a 90-day termination notice without having to state the reason for that termination will be removed. Instead, there will be a limited number of specific reasons under which such a tenancy can be terminated by the landlord. These reasons include:
  • the landlord intends to make the property available for sale within 90 days of the tenant leaving the property
  • the termination is required so that the property can be used for business purposes
  • the landlord intends to carry out extensive repairs and alterations, during which the property would be rendered uninhabitable
  • the landlord wants to change the use of the premises
  • the premises are to be demolished
  • the landlord is not the owner, and the landlord's interest is ending
  • the landlord has issued three separate 14-day notices to the tenant within a 90 period for antisocial acts
  • the landlord has given notice that the tenant has been at least five working days late with their rent payments within a 90 day period.
(For the last two reasons, the landlord would need to apply to the Tenancy Tribunal for a hearing in relation to these matters, presumably the usual evidentiary rules would apply).

All fixed-term agreements would automatically covert to periodic tenancies on expiry, and the tenant alone will be able to decide if they stay in the property or leave. The landlord will have no power to require the tenant to depart. Effectively the tenant alone will have full control of the property and the duration of the tenancy.

Where the landlord or their family wishes to move into the property or the property is required to house an employee of the landlord the requisite periodic tenancy notice period is extended from the current 42 days to 63 days.

Tenants will be permitted to install a minor fixture or fitting onto the property with the landlord's permission, and this permission will only be able to be declined for specified reasons.

Landlords and agents must provide a price when advertising any rental, and seeking rental bidding will be illegal.

Rent increases frequency will be restricted to no more than annual increases, rather than 180 days as is currently the case.

All requests from tenants to landlords for assignment of a fixed-term tenancy to another tenant must be considered, and landlords must not unreasonably decline.

Landlords must provide tenants with breakdown details of any fees or other charges they request from their tenants relating to fixed-term tenancy assignment, subletting or ending the tenancy.

Landlords will have an obligation to provide tenants on request of any records they hold in relation to the Healthy Homes standards on that property.

MBIE will be empowered to issue notices to landlords to comply with RTA obligations without first having to obtain a Tenancy Tribunal Order, and existing monetary penalty levels will be increased.

The allowable level for claims bought before the Tenancy Tribunal by both landlords and tenants will be raised from a maximum level of $50,000 to $100,000.

In response to the NZPIF submissions on tenants ability to keep pets in a rental property, there are no proposed changes to the existing legislation.


 

Recent Posts


Tags

RBNZ capital gain tenancy tribunal sale and purchase HHGA letting fee rta holiday house Q&A renovation tenancy services letting recycling equity p lab bond form airbnb short-term rental rent increase development banking winz negotiation water bill ring-fencing heater initio Investment tip house prices Kris Pedersen Mortgages and Insurance HHS market Property (Relationships) Act TCIT fixed-term tenancy beginner investor advice gluckman report income worksafe scotney williams interest rates positive cash flow speculator principal and interest clnz data security election 2017 auckland council covid-19 landlord tenancy issues trust reserve bank Market report RTAA 2019 warren buffett Guest blog financial advisers act ask an expert off the plan asbestos HSWA property value wins DTI lvr housing affordability legal unitary plan investment strategy rent ird Must know insurance twg report buying Holler insulation cash-flow tax personal growth return trespass warm up new zealand property maintenance Level 4 anz Investor story minor dwelling ventilation Standards New Zealand television termination rent arrears partners rta reform relationship cat meth LIM smoke alarm Jeff Bezos ocr sublease subdivision Sponsored post Must knows watercare property cycle rental wof property management maintenance first home buying boarding house mortgage nzpif Tribunal case study inspection education How to skill shortage buyer's agent interest only trademe rental market Editor's Choice property meth contamination finance robert kiyosaki Question and answer government productivity cgt CoreLogic Gluckman building investor sale and purchas management privacy Landlording debt enforcement damage business heating bad tenant market rent tenant bond auckland shower dome CCC buying rules structure parry v inglis wealth creation housing bubble equity extractor fan

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo Keith Hay Homes logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited