New reforms for our industry!
We have been keeping a close eye on the most recent changes to the Residential Tenancies Act since 1986.
As of last month, just prior to the upcoming elections, there has been much debate within the media with a strong opinion that this has been biased toward tenants and their rights and making things more difficult for landlords.
Given the new law that has passed, we are progressing forward with amore positive approach. Things have certainly changed since 1986!!
We remain positive given that the investment outlook for Residential Property remained remarkably resilient for the first half of this year, with indicative yields still remaining stable. It has been widely publicised that cash investments such as term deposits suffering due to low interest rates, even modest rental returns from residential property investment are looking more attractive.
The new Healthy Homes legislation, relating to new standards for home ventilation and heating has been touched on in our previous blog. Please visit https://www.therentshop.co.nz/post/your-quick-healthy-homes-standards-guidefor more information. There will be further information provided in relation to this in the next couple of months
Amendments under the revised Residential Tenancies Act
The intention behind the Residential Tenancies Act (RTA) amendments was to modernise it to present day renting, changing this to meet present standards of renting compared to over 30 years ago when the Act was last updated.
There has been wide concern amongst our Property Investors on these reforms, now that some of the new legislation has come into effect immediately, we would like to highlight some of the more major points of change:
- Landlords will not be able to end aperiodic tenancy without a reason. The legislation will set out specified reasons that a landlord may use to end a periodic tenancy.
90 days’ notice can be issued under the following circumstances:
a) the property is to be sold
b) extensive alterations or redevelopment are to be carried out
c) the premises are to be converted into commercial premises, or demolished.
- Tenants will now have to give 28 days’ notice to end a tenancy, up from 21 days-Feb 2021
- Fixed-term tenancies will become periodic tenancies at the end of the fixed term unless both tenants and landlords agree otherwise-Feb 2021
- Tenants who need to leave a tenancy quickly due to family violence will be able to provide the landlord with a family violence withdrawal notice and end the tenancy within 2 days. -August 2021
- Tenants will be able to add minor fittings to their premises where the installation and removal of the fittings is low risk. -Feb 2021
- Rental bids is prohibited-Landlords and agents may not advertise rental properties with no rental price listed. They also may not organise a rental auction or otherwise invite or encourage bids for rent. Prospective tenants are still allowed to offer to pay more for a property if they want.
- The minimum period between rent increases will be raised from six months to twelve months. - August 2020
Remember with this, any of the other Healthy Homes standards and compliance measures, and the RTA changes, we at The Rent Shop are available to assist. Our team is fully qualified and equipped to help take care of this for you. Please feel free to contact your Property Manager for any questions you may have – we are the Property Management Experts and we are here to help you and guide you with new legislation!