’KFC test’ ruled out for tenants

Property managers and landlords are being told not to perform the ‘‘KFC test’’ on prospective tenants.

The issue was raised last year when NZ First MP Darroch Ball released audio of a select committee oral submission in which a property manager said it was usual practice to ask to see bank account details, to determine whether tenants could pay rent.

Rachel Kann told the committee it was common to see lots of payments to KFC and for things tenants could not afford.

‘‘I don’t just want to put a tenant into a property and no sooner have they been put in, they can’t afford the rent,’’ she said.

The Privacy Commissioner has now released guidelines for people placing new tenants in properties, showing what is and is not OK to ask for.

Landlords are told they can ask for names and contact details; proof of identity; whether the individual is 18 or older; the expected length of tenancy; contact details for referees; consent for a criminal record check and credit report; the number of occupants who will live there; pet ownership; and whether they smoke.

Once a preferred applicant is selected, landlords can do a credit report and criminal record check; find out the person’s date of birth and contact details of an emergency contact; ask for proof of income; and vehicle information.

But they should not ask for nationality, ethnicity, origin details or citizenship, about physical or mental disability or illness, personal beliefs or opinions, marital status, gender and sexual orientation, rent paid previously, current expenses, proof of insurance, employment history or broad consent to collect information from ‘‘other sources’’.

The commissioner has flagged that in some cases, there could be problems with things such as taking photographs of tenants’ bedrooms.

‘‘Whether photos taken inside a rental property are personal information about the tenant will depend on what is visible in the photo. It is possible that a photograph of someone’s bedroom would reveal information about the tenant and, as such, would be considered their personal information.

‘‘For example, if a landlord or their agency believes a tenant has caused damage to the property, it is common to take photos as evidence. The key is to make sure there is a good reason for taking the photos, and that the photos are not unnecessarily intrusive.’’

It is the second version of the guidelines for landlords and property managers.

The first iteration was withdrawn in June when questions were raised about the guidelines stating that asking if someone smoked, or requesting a credit check, were only ‘‘sometimes justified’’.

The Real Estate Institute of New Zealand welcomed the new guidelines.

‘‘When the guidelines were initially released there was a lack of consistency and limited industry consultation in the development of the guidelines,’’ chief executive Bindi Norwell said.

‘‘However, today’s guidelines are much clearer as they specify the type of information that should and should not be collected at various stages of the tenant selection process.

‘‘In the commission’s view, collecting certain information becomes more justifiable as the process progresses and this is certainly something the industry agrees with.’’

She said one concern initially raised by the industry was whether it could be asked if an applicant was over 18.

‘‘The new guidelines clearly state this is something potential tenants can be asked from the outset to ensure landlords and property managers are complying with the requirements under the Residential Tenancies Act.

‘‘We are delighted that the [commissioner] has cleared up the issue around proof of age as this was a big concern to a number of our members when the guidelines initially came out, so we are really pleased the commissioner has taken our feedback on board.’’

She said the clarification that credit checks should only happen on preferred applicants could slow the process.

‘‘[But] the industry concedes that it is prudent to check preferred candidates rather than all candidates,’’ she said.

‘‘We also welcome clarity on issues such as income verification/employment, smoking, expenses . . .

‘‘We absolutely agree with the commission’s list of questions that should not be asked at any stage of the tenancy application including nationality, ethnicity, physical/mental disability, gender, sexual orientation etc.

‘‘Today’s guidelines . . . specify the type of information that should and should not be collected.’’ Bindi Norwell

REINZ chief executive