The recent tenancy law changes give tenants more freedom to make changes to the property and greater protection from unjustified evictions. Photo / Bevan Conley
The recent tenancy law changes give tenants more freedom to make changes to the property and greater protection from unjustified evictions. Photo / Bevan Conley
The biggest tenancy law reform in more than three decades comes into effect today.
It includes multiple changes to the Residential Tenancies Act 1986, with many empowering the tenant and providing them with extra security and protection.
However, a Whanganui community organisation manager is questioning whether it's a step toofar in favour of tenants.
One of the most significant changes is the end of 90-day no-cause tenancy terminations.
Other changes include prohibitions on rental bidding, tenants can ask to make changes to the property and landlords must not decline if the change is minor, changes for fixed-term tenancies and fibre broadband must be installed if it comes at no cost to the landlord.
In August 2020, the first phase of law changes took effect. Transitional and emergency housing would be exempt from the Act where housing was funded by a government department or provided under the Special Needs Grants Programme.
Rent increases were also limited to once every 12 months from August last year.
Whanganui People's Advocacy Centre manager Sharon Semple said tenants need greater protection, but the recent changes may have swung the power too far into their hands.
"I get that tenants need more protection, but there needs to be more protection for landlords as well. It's not an even scale."
The Whanganui People's Centre, which offers free support and advocacy, and works with people in emergency housing to attain permanent housing, has seen a significant uptick over the last few years.
Semple said around 30 to 40 people come in each week looking for homes.
"When I first started at the People's Centre three years ago, it wasn't really in our face. In the first nine or 10 months, it really started becoming the trend in the community."
The team at Whanganui People's Centre, Nicola Howe (left), Sharon Semple and Paul Woodmass, have seen a huge uptick in their services in the last three years. Photo / Liz Wylie
Semple said they housed 387 people in the last financial year.
"There just isn't anything available, and what is available is out of their reach. With rent increases, they just don't have the affordability.
"It is definitely becoming a crisis point. It's becoming harder in Whanganui."
Semple said some landlords were opting to keep their properties empty after previous bad experiences and, in the current property market, money could still be made over time by keeping the property empty.
"You can sit on a house for a year and you've made $100,000, you take off the rent you paid for that year, you are still coming off better."
A former landlord herself, Semple said she has been left out of pocket from previous tenant damage to the property and unpaid rent.
"It has to be highlighted, there are tenants that will take advantage of the new tenancy law coming in, how do we better protect landlords? They have bought the property for investment.
"A lot of landlords want to help out in the current housing climate, but it is almost not worth their while."
Scotney Williams, director and senior consultant at tenancy.co.nz, said the Ministry of Business, Innovation and Employment consulted with industry groups in 2017.
"With more New Zealanders remaining tenants for longer, the Residential Tenancies Amendment Act 2020 will generally provide tenants with more security of tenure and the freedom to treat rental properties as homes.
"However, the removal of no-cause terminations, for example, now make it very difficult to get rid of antisocial tenants."
Williams said the changes are well intended and tenant selection will be more important than ever for landlords and property managers.
"Tenants who have a marginal credit rating or have a history of not being an impeccable tenant, may find it difficult to secure rental properties."
Whanganui District Council has been contacted for comment.
