Property managers support proposed 90-day no-cause bill
Property managers in Invercargill are rallying behind a bill that proposes the return of the 90-day no-cause eviction clause in tenancy agreements.
The bill goes to Parliament next month and changes to the tenancy laws are expected to take place early next year.
The proposed change, announced by the National government in December 2023, would give landlords the power to evict tenants without offering a reason, but they would have to provide notice.
If passed it would be a reversal of a bill introduced in 2020.
Rent South business owner and property manager Leeann Tautari said the proposed changes meant the renter pool would increase, and people who were in transitional emergency accommodation would get a chance in the open market.
“[Owners] have got that [clause] in their back pocket. If something ever happens, then the 90 days can be available, because it was such a risk to rent to the high risk,” Tautari said.
She highlighted people who had been evicted before but had learnt their lesson and deserved a second chance. That opportunity was unlikely under the current tenancy laws. “I think it's great, it's a good [proposed] change. Some industry leaders further up disagree, but I think that it's a positive change to what we had ... because we didn't get rid of good tenants.
“Its good for everyone.”
There was a stigma associated with people coming from an emergency housing background, but some owners understood a person’s situation, she said.
“We've taken a chance on a couple of applicants where owners were okay with doing that, and by gosh, they haven't let us down at all. It's been really quite comforting [that] the owners took the chance, and [they] are very happy with it.”
Property owners were also a bit more relaxed – after the announcement) – because previously, insurance companies wanted to know what checks had been done on the rent applicants in case a claim was made on the property, she said.
PropertyScouts Invercargill owner and manager Ingrid Scott agreed the change would bode well for renters.
Without the eviction clause, even if someone had a bad credit rating that had improved, a property manager would still not take the risk and make a six-month fixed-term tenancy agreement and hope the renter did not miss a payment during that time, and then extend their lease for another year based on that, Scott said.
“If you don't have that 90-day clause [and] if they stopped paying, it's a really hard process.”
She said while it would be hard to give a percentage of how many renters fell under a high-risk umbrella, it was dependent on what property they were applying for.
However, a change would benefit landlords who had smaller properties in the lower rental range, as well as renters looking for a second chance or people with pets.