1. Home
  2.  / Tenant's Rights May Change
Tenant's Rights May Change

Tenant's Rights May Change

Andrew King talks us through changes Renters United would like brought in to law and their potential effects on landlords.

By: Andrew King

1 August 2018

Tenant lobbyists, Renters United, recently publicised 36 law changes that they claim will fix the “broken” rental market. A key desire is for tenants to stay in a property for as long as they want. The only way an owner could end the tenancy is for non-payment of rent, serious illegal or antisocial behaviour, or significant damage. “No other reason will be legitimate.” It appears that they believe that moderate illegal or antisocial behaviour and moderate damage by tenants is fine.

They would like tenants to keep any pet of right and to be able to make changes to the property to make it their home. They want renters to be able to make changes to the terms of their tenancy when their personal circumstances change. They want rent increases limited to general inflation rather than actual costs. They want to increase the existing limits on when an owner can inspect their property. In other words they want all the benefits of home ownership without the additional costs, requirement for a deposit or any risk of mortgage interest rate increases.

At the Tenancy Tribunal they want free, Government funded tenancy advocates (essentially legal experts), to represent tenants in mediation and at the Tribunal.

They want better enforcement against landlords, including more sanctions and higher fines. Plus they want some landlords to be disqualified from managing their property.

‘The rental industry is made up of rental providers and tenants, with both these parties being essential’

Given that around 90% of Tenancy Tribunal applications are made by rental property owners for non-payment of rent and damage to property, I think it would be fairer to introduce laws that discourage rent arrears and penalise tenants for damaging property. Enforcement would be better improved by holding tenants more accountable for the money they owe. This would reduce some of the risks and costs involved in providing rental property, potentially lowering the cost of rent for all tenants, the vast majority of whom are excellent.

There are some things we agree on, however. Renters United says that renters should not fear eviction for reporting problems. The New Zealand Property Investors’ Federation agrees. We inform our members to encourage their tenants to report problems so they can be addressed in a timely and usually more cost effective manner.

Renters United want to establish longterm tenancies as the norm. The NZPIF agrees. Renting is a perfectly sound way for people to provide for themselves. If the tenant is paying the rent, looking after the property and not upsetting neighbours, then the longer they stay there the better.

It is cheaper to rent a home in New Zealand than it is to own the same home. On top of this you do not need to save for a deposit to buy your home. These are two extremely beneficial advantages. However, nothing is perfect and because you do not own the home, there may come a time when the property is needed or required to be sold. The owner should always have the right to sell their property if they choose or receive some compensation if they choose to give up this right.

The rental industry is made up of rental providers and tenants, with both these parties being essential. We all need to remember this as poorly thought out, one-sided policies will negatively affect everyone.

Advertisement