Impact of new eviction law on rental properties

New Zealand Property Investors Federation PR & advocacy manager Matt Ball.

A vital “backstop” for landlords was reinstated this week as no-fault evictions were reintroduced by the National-led Government.

It will mean when landlords take a chance on someone, there is a way out, Tauranga Property Investors' Association publicity and advocacy manager Matt Ball said.

“The change also places the control of the property back into the hands of people who own it.”

Ball said that some landlords will be emboldened by the law change and place their properties back on to the market after being stung by bad tenants.

“If you had that experience, your alternative is to leave the property (empty).”

It is often mum-and-pop investors who are left to clean up after bad tenants, as hiring a property manager to handle renters can be expensive, Ball said.

For the most part, most renters and investors would be unaffected by the changes to eviction notices, as most landlords and renters want a situation that is mutually beneficial, he said.

In a survey of 6432 people conducted by the Tauranga City Council in 2023, 15.6% responded as renting.

Labour housing spokesperson Kieran McAnulty. Photo / Warren Buckland
Labour housing spokesperson Kieran McAnulty. Photo / Warren Buckland

Opposition response

No-fault evictions mean some families might be “turfed out into the streets”, Labour housing spokesperson Kieran McAnulty said.

“The National Government does not care for tenants. One in three households in New Zealand are renting,” McAnulty said.

The Minister for Housing has an obligation to support people in having housing security and access to a warm, safe home, he said.

Green MP Tamatha Paul
Green MP Tamatha Paul

No-fault evictions started on Thursday, allowing landlords to end tenancies without reason. This adds to the insecurity renters face, especially families, Green Party Housing spokesperson Tamatha Paul said.

“Open season on renters has begun, as this Government for landlords creates more insecurity and pain for renters,” Paul said.

 National MP for Tauranga Sam Uffindell.  Photo / Alex Cairns
National MP for Tauranga Sam Uffindell. Photo / Alex Cairns

National's take

In 2024, the Government made a raft of pro-tenant changes, National MP for Tauranga Sam Uffindell said.

“One of these was reintroducing 90-day ‘no cause’ terminations for periodic tenancies, meaning landlords can now end a periodic tenancy without requiring a specific reason,” he said.

“Without the backstop of 90-day ‘no cause’ terminations, they were unwilling to take a chance on a tenant.”

The change ensures tenants have a fair shot at getting into a rental, and landlords have the certainty they need to take a chance, Uffindell said.

“To end New Zealand’s housing crisis, we need to use every tool to increase supply. This includes the rental supply.”

What the changes mean

 

Amendments to the Residential Tenancies Act passed last year and brought a number of changes.

While the changes to bond lodgments, no longer requiring signatures for lodging or topping up a bond, took effective immediately, others are still being rolled out.

From January 30, landlords can end a periodic tenancy without a specific reason if they give 90 days' notice.

They can also end a tenancy with 42 days' notice if they or a family member are intending to move back into the property.

Landlords will also not need to give a reason why they do not want a fixed term to automatically become a periodic tenancy.

Other technical changes take effect from March 20, including allowing landlords to ban tenants smoking indoors and allowing an email address to be used as an address for service.

The amendments also included provision for "pet bonds" but these will not take effect until an order in council.

A Ministry of Housing and Urban Development spokesperson said that was expected late this year.

"We need flexibility for the pet-related changes, as they require new pet bond IT functionality to be developed and implemented."

-Additional reporting by RNZ

 

 

 

 

 

 

 

 

 

 

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