Landlords find eviction loophole
Landlords are shortening eviction timelines by getting people on boarding house agreements.
In a tight rental market, those desperate for homes “won’t look twice before signing”, Community Law Waikato says.
The organisation has already seen cases where landlords were using boarding house rules when the property wasn’t classed as one.
And, at a recent viewing in Hamilton, a Waikato Times reporter was told by the landlord that the shorter eviction notice period was an advantage.
The landlord said he can evict renters who miss payments with 48 hours’ notice under a boarding house agreement.
That’s much faster than under a tenancy agreement.
“If your tenant missed three weeks’ rent then you’d have to apply with the court [Tenancy Tribunal], and it will take you four to six weeks to go to court. And the tenant still hasn’t paid rent during that two months,” he said.
“And when you get to court, you don’t always win, right? The courts are very sympathetic towards tenants. Before it was fair; it’s not so fair any more.”
Boarding houses can give boarders 28 days’ notice with no reason required, or in some cases 48 hours’ notice – for example, if a boarder hasn’t paid overdue rent after a 10-day notice.
For periodic or fixed-term tenancies, the only way to end it is for a landlord to put their house on the market, renovate it, or ask their family to move in. These require a notice period of between 63 and 90 days.
The Hamilton boarding house had four tenants, whereas it should have, or be intended for, at least six, to meet the legal definition, according to the Residential Tenancies Act 1986.
And it’s happening in Auckland too. A woman, who spoke on the condition of anonymity, said she has been living in a four-person house on a boarding house agreement. There had always been four people, if not fewer, and she doesn’t think the four-bedroom house has the communal space for six.
Landlords may be frustrated with the time it takes to resolve situations, Citizens Advice Bureau NZ’S Sacha Green said. “But a boarding house agreement should only be used if it’s a genuine boarding house, not to try and avoid responsibilities.”
Green, the national adviser legal and strategic, didn’t feel the Tenancy Tribunal favoured either landlords or tenants.
Green said boarders, tenants and flatmates are very different situations, which is why they are differentiated in the law.
For example, boarders each have a space of their own, but live in a “shared environment where the landlord is ensuring that the common spaces are maintained and operated,” Green said.
The Residential Tenancies Act states landlords have an ongoing obligation “to ensure that the facilities of the premises are in a reasonable state of cleanliness.”
However, the Auckland woman said cleaning communal areas had always been the responsibility shared by the boarders, and she felt her landlord doesn’t understand boarding house rules either.
They had given the boarders 90 days’ notice because the house is going on the market, while the act requires landlords to give only 28 days’ notice to evict a tenant, no reason required. “I don't really understand why we're on this boarding house tenancy in the first place.”
Community Law Waikato said they’ve seen cases where landlords who don’t meet the six-person criteria put tenants onto the agreement and try to evict a tenant with 48 hours’ notice.
Lawyer Leah Dangen said in that case, landlords can be stopped because the Tenancy Tribunal will look at whether the house is a boarding house.
Legal service manager Angela Smith said boarders don’t have as many rights.
“Maybe it’s because you usually have more high-risk tenants.
“People are so desperate for housing they won’t look twice before signing the contract. It’s hard to stand up for yourself or serve your legal rights when there’s not enough houses.”
For example, the 10 days’ notice period for boarders who miss rent is very short. “10 days isn’t quite a pay cycle either.” Smith said from a Community Law perspective, boarders are usually the more vulnerable people in the society as they are already lacking social support.
With the current tight rental market, the team is seeing more renters putting up with illegal changes or requirements from their landlords.
Green said changing social habits also mean more people are renting, and more renters are in vulnerable situations that don’t fit neatly to the provisions in the act.
“Tenants who are essentially competing to secure a place to live will often sign what was given to them and not feel able to take a lot of time to consider or question the contract.”
The woman in the Auckland boarding house said although she enjoyed peace of mind as she didn’t have carry the weight of replacing a boarder when someone leaves, she would not sign up to a boarding house agreement again because it was confusing.