Landlords in Govt’s sights with reforms
The Government will double the threshold for damages claims at the Tenancy Tribunal, allow renters to do more to change properties and introduce anonymised tenancy tribunal rulings as part of a longawaited overhaul of tenancy laws, it was announced yesterday.
These measures will also include an end to no-cause evictions, a ban on rental bidding and a limit on rent rises to once-yearly, up from six months.
The new laws – expected to be passed by Parliament in the new year – will automatically assume that a ‘‘periodic tenancy’’ will begin at the end of a fixed-term lease.
So if a lease ends after 12 months, it is assumed the tenant will stay on in a ‘‘periodic’’ (open-ended) tenancy from there on in, without needing to sign another fixedterm agreement. Landlords can ask tenants to go on to a new fixed-term agreement but the tenant has to agree.
Landlords will not be able to end a periodic agreement except for specific reasons such as selling the property, doing major renovations, three complaints of anti-social behaviour or more than three instances of rent being paid more than five days late over a 90-day period.
Renters who enter into a dispute with landlords and are successful in defending a claim or having their rights upheld, will now have their identities removed from tenancy tribunal decisions, if they choose, before the determinations are given.
This is designed to protect tenants from being later penalised for being difficult by a potential future landlord. The same anonymised option will apply to landlords.
‘‘Some landlords have used those documents to check on whether a tenant may be troublesome or not,’’ Associate Minister for Housing Kris Faafoi said.
‘‘If a tenant has successfully taken the case or successfully defended themselves in the case of the tenancy tribunal – so they have not been in the wrong – we are saying we will anonymise those cases to ensure there is no detrimental effect to that tenant.
‘‘Because all they have done is gone to the tenancy tribunal to defend themselves or to take a case against the landlord,’’ Faafoi said.
Landlords who do not comply with the Residential Tenancy Act will be liable for payouts from the Tenancy Tribunal of up to $100,000, up from $50,000. Previously damages over $50,0000 had to go to court. The regulator, the Ministry of Business, Innovation and Employment will also be able to make a single application against a landlord over a number of properties.
Landlords will not be able to start a bidding process for new rentals, however, if prospective tenants want to offer above the asking price, they will still be allowed to initiate a higher rent offer, which the landlord will be allowed to accept.
The minister said this meant tenants could pay more if they wished. ‘‘The landlord won’t be able to advertise a ‘no price’ rental, so they won’t be able to have an auction. But if they see fit for some reason to bid above, a tenant has a right to do that. But the landlord is not entitled to offer a property at a higher rate.’’ Faafoi said.
Landlords will also have to provide records proving their homes meet healthy homes standards if the tenant requests them. Landlords will also not be able to refuse requests for small changes to fittings that tenants wish to make that can be easily removed at the end of a tenancy. These could include fittings such as baby gates, baby proofing, curtains, and installing dishwashers and washing machines.
Faafoi said that was designed, in part, to make rental properties more responsive for the needs of children. It will also mean rentals can be made baby safe and for furniture to be secured for earthquake safety.
If a tenancy is ended for a valid reason, the landlord will need to provide 63 days of notice – up from 42.