Changes may raise rents and reduce rental pool – officials

Government officials have warned that proposed rental market changes could reduce the number of homes available for rent and increase what tenants have to pay.

The Residential Tenancies Amendment Bill has passed its first reading and has been referred to the social services and community select committee. ‘‘This bill includes a series of reforms to improve the wellbeing of the 609,700 households that live in rented homes, and to provide a balance between the rights and responsibilities of both tenants and landlords,’’ Associate Housing Minister Kris Faafoi said.

‘‘These changes . . . will build on the gains we have already made to ensure that rental properties are warm, dry and safe.

‘‘They will provide a higher level of security to tenants, and ensure landlords continue to have the tools they need to manage their assets and provide a high quality of service to their tenants,’’ Faafoi said.

Changes include the Tenancy Tribunal anonymising details of people who are successful in taking a case; automatic rollover from fixed-term tenancies to periodic; and the removal of a landlord’s right to remove tenants without a reason if they give 90 days’ notice.

In its regulatory impact statement, the Ministry of Housing and Urban Development said that if the changes improved tenants’ security of tenure, that should improve their wellbeing by giving them better roots in their community and improved health, education and employment outcomes. There should also be fewer involuntary changes in their rental accommodation and more transparency in their dealings with landlords.

Landlords in turn should reduce their costs if tenant turnover fell, the ministry said, and should have more access to timely and costeffective dispute resolution, as well as improved deterrence of and compensation for breaches.

But it said there was the potential for additional compliance costs for landlords, and tenants could face higher rents if property owners sought to offset additional risk.

Landlord willingness to rent and the amount of rent charged could be affected and there could be ‘‘a potential increased need for public housing’’, the ministry said.