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Home / Whanganui Chronicle

Steve Baron: Rules needed for rental housing

By Steve Baron
Whanganui Chronicle·
19 Jan, 2016 01:08 AM4 mins to read

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AS A COMMUNITY we set standards and these are administered by central Government and the district council.

We set these standards for our water supply, food premises, commercial buildings, new housing, vehicles, aircraft, etc.

However, we do not set any standards for rental housing to ensure these homes are safe, warm and dry.

There has been a growing concern about the standard of rental housing in New Zealand for some time.

Minister for Building and Housing Nick Smith said in 2013: "There are real gains for the health, safety, and welfare of New Zealanders, particularly children and the elderly, from having a better standard of housing."

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What was somewhat embarrassing about this issue, at the time, was that the Government itself was the worst perpetrator of housing standards through Housing New Zealand - by far the biggest landlord in New Zealand.

Housing New Zealand has certainly lifted their game since then and that is a credit to them.

Through changes to the Residential Tenancies Act, by July 1, 2016, all landlords will be required to stipulate the level of insulation in walls, ceiling and under floor in all new tenancy agreements. Smoke alarms will also be required to be supplied and fitted by landlords.

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In July 2015, Dr Smith also announced landlords will have to provide floor and ceiling insulation in all tenanted properties throughout New Zealand by the middle of 2019. Is this enough, though?

Whanganui has its fair share of substandard rental properties.

In 2013, a young Whanganui tenant was awarded $4500 by the Tenancy Tribunal because the house she rented in Pitt St had a leaky roof, mould and a leaky toilet, along with other issues.

When she complained, she was evicted by the landlord Hamish Davey.

This shows how vulnerable many tenants are and I have also seen this first-hand through a family member and their dealings with their landlord.

Often tenants are not fully aware of their rights and some lack the confidence or knowledge to take matters further.

With an annual warrant of fitness for rental housing, the vulnerable would become less vulnerable and slum landlords would eventually be kicked out of the game or have to improve their rental properties.

Back in 2013, Deputy Mayor Hamish McDouall called for a rental housing warrant of fitness to be introduced by the Whanganui District Council.

The idea was put aside as central Government had indicated action would be pending. In recent social media posts, the concept is again receiving support from Mr McDouall, and Mayor Annette Main also voiced her support.

Councillor Jenny Duncan raised some concern that a rental housing warrant of fitness may stifle investment.

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However, investment may be important but the health of people is far more important, in my opinion. If slum landlords think they can buy a dump then rent it without maintaining it to a reasonable standard, then that is the sort of investment we do not need in Whanganui.

Some commentators (usually landlords) have also argued the cost to bring a property up to standard would simply be passed on to tenants who cannot afford to pay more.

However, in a recent study by the University of Otago, Wellington, results showed that only 12 per cent of landlords thought they would increase the price of their rental property if repairs were made. I suspect most landlords might see such a WOF as a competitive advantage to ensure they found better tenants, rather than putting the price up.

Some argued that the current Residential Tenancies Act is quite adequate, but that is highly debatable and we know from experience lower socio-economic groups are not fully aware of their rights or in a position to enforce them.

Perhaps, in the long run, rental property price rises would eventuate, but it would also mean we would have a much better housing stock in Whanganui and far healthier tenants.

While there may also be some extra costs incurred by the district council to inspect and enforce rental property standards, sometimes principles and standards are far more important than just money.

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-Steve Baron is Whanganui-based political commentator with degrees in economics and political science, an author and founder of Better Democracy NZ.

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