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Consultation on proposed RTA changes

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  • Originally posted by PC View Post
    So FTT no longer exists?
    What ever the LL says - doesn't matter.
    The FTT still exists and would have a place - just not quite the same place it had before.

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    • RTA Changes

      Thank you, that link was helpful

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      • How do you work it though?
        If I initially sign tenants up for 12 month fixed then decide I want them out at end of that period - How do I get them out?
        They can just say nah and it's automagically a tenancy for life.
        The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

        Comment


        • Originally posted by PC View Post
          How do you work it though?
          If I initially sign tenants up for 12 month fixed then decide I want them out at end of that period - How do I get them out?
          They can just say nah and it's automagically a tenancy for life.
          You can't - they have to agree.
          That's the difference now.
          But they can't get out of it easily during the term

          Comment


          • Originally posted by PC View Post
            How do you work it though?
            If I initially sign tenants up for 12 month fixed then decide I want them out at end of that period - How do I get them out?
            They can just say nah and it's automagically a tenancy for life.
            Under the new rules termination may be allowed but only under specific circumstances such as rent arrears, antisocial behaviour.

            Not only that but under the new rules the tenants can assign the tenancy and the landlord cannot unreasonably refuse. Also applies to periodic tenancies.

            One option landlords have to terminate, now and future, is to raise rents at every legal opportunity to as much as can be justified. If challenged in the Tenancy Tribunal by the tenant, the landlord will need to be prepared to demonstrate the new rent is not substantially higher than market rate. In addition there is a new option that I predict will be used a lot. Still needs TT to terminate though so good luck with that.

            The Bill also provides an additional provision for landlords to use where the tenant is in relatively
            minor, but repeated, rent arrears. A landlord can apply to the Tribunal for termination if, on three
            separate occasions, a tenant has been at least five working days? late with the rent payment, and
            the landlord has issued the required notices advising the tenant that the rent is late.

            The landlordmust apply to the Tenancy Tribunal to end the tenancy within 28 days of the last notice being issued.

            There are specific requirements for the notice, which must advise the dates for which the rent was
            overdue, the amount of the overdue rent, how many other notices have been given within the 90-
            day period and advising the tenant they can challenge the notice in the Tribunal. If the Tribunal is
            satisfied the requirements for this termination ground have been met, it must make an order
            terminating the tenancy.

            Whether or not the Tribunal ends the tenancy, the tenant still remains liable for all unpaid rent.


            https://www.hud.govt.nz/assets/Resid...ugust-2020.pdf

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            • This is totally nuts.
              Was anyone at all "consulted" on such insane laws?
              So anyone going overseas for a few years better just leave their property empty.
              The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

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              • Originally posted by PC View Post
                So anyone going overseas for a few years better just leave their property empty.
                Why?......

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                • Hello Artemis

                  Originally posted by artemis View Post

                  Not only that but under the new rules the tenants can assign the tenancy and the landlord cannot unreasonably refuse. Also applies to periodic tenancies.
                  On Page 23 of the document you linked to, the landlord has the choice of ending the current tenant's tenancy, and re-letting the property if the assigned tenant is not acceptable to the landlord. Therefore, a landlord does NOT have to accept the assignment of the tenancy. Yes, the tenant has to agree to end the tenancy, but isn't the reason why a tenant wants to assign the tenancy is because the tenant wants to leave in the first place?

                  Or, would a "Front Person" with very good references gain a tenancy initially, stays a few weeks, then assigns it to a friend who would have had no hope of being offered a tenancy by the landlord, had an application been made.The tenant then does not agree to end the tenancy, thus obtaining a tenancy for the friend, possibly for as long as the friend wants.

                  This trick could be used by some tenants who otherwise would not be able to gain tenancies, but people wouldn't go to such lengths, would they?

                  What can landlords do if their tenant makes a reasonable assignment request but the
                  landlord still doesn?t want to accept it?

                  The landlord can surrender the tenancy instead of accepting the request with the agreement of the current tenant. If the tenant wants to exit the property and has provided the landlord with a reasonable tenant for them to assign their tenancy to, the landlord either needs to accept this or agree with the tenant to end their tenancy. This will allow the landlord to go to the open market to advertise for a new tenant.
                  Last edited by learner; 18-09-2020, 02:27 AM.

                  Comment


                  • Originally posted by learner View Post
                    Hello Artemis

                    On Page 23 of the document you linked to, the landlord has the choice of ending the current tenant's tenancy, and re-letting the property if the assigned tenant is not acceptable to the landlord. Therefore, a landlord does NOT have to accept the assignment of the tenancy. Yes, the tenant has to agree to end the tenancy, but isn't the reason why a tenant wants to assign the tenancy is because the tenant wants to leave in the first place?

                    Or, would a "Front Person" with very good references gain a tenancy initially, stays a few weeks, then assigns it to a friend who would have had no hope of being offered a tenancy by the landlord, had an application been made.The tenant then does not agree to end the tenancy, thus obtaining a tenancy for the friend, possibly for as long as the friend wants.

                    This trick could be used by some tenants who otherwise would not be able to gain tenancies, but people wouldn't go to such lengths, would they? ...
                    What is not specified in the HUD FAQ is what a tenant can do if they consider landlord has declined an assignment unreasonably. Actually the tenant can challenge a refusal in the Tenancy Tribunal and the landlord
                    can presumably be forced to accept the assignment plus can be fined for an unlawful act. The landlord has to provide evidence (or similar) to support their decision. Assume that evidence / reasons has to be provided in writing to the tenant and to the Tribunal that can decide reasonable or not. Whatever that means. Can of worms.

                    For a new tenancy landlords can decline applicants without giving any reason. That won't be the case with assignments.

                    Will tenants use this provision? Sure will once they and advocacy groups realise what it means. There are times and locations when rentals are close to impossible - like Wellington in February. Smart leaving tenants / students will plan to assign their tenancy to their mates well in advance. Landlords can charge costs to assign but there are limits there as well.

                    Comment


                    • Hello Artemis

                      Originally posted by artemis View Post
                      Assume that evidence / reasons has to be provided in writing to the tenant and to the Tribunal that can decide reasonable or not. Whatever that means. Can of worms.
                      If the landlord gives the Tribunal the criteria that are used to offer tenancies to prospective tenants, and the assignee that the current tenant appoints does not meet those criteria, then that must be an acceptable reason to decline the assignment. After all, Immigration New Zealand has criteria for entry to the country, and Kaianga Ora and other social housing providers also have their criteria for acceptance for their properties. Landlords must surely be entitled to be allowed to choose tenants that are acceptable to them as well.

                      We'll have to wait to see whether the Tribunal adjudicators uphold a landlord's basic right to control who is allowed to live in their properties.

                      Comment


                      • Originally posted by learner View Post
                        Landlords must surely be entitled to be allowed to choose tenants that are acceptable to them as well.
                        The current crop of socio-commies in gummint don't want private residential LLs to have any rights or entitlements.

                        Originally posted by learner View Post
                        We'll have to wait to see whether the Tribunal adjudicators uphold a landlord's basic right to control who is allowed to live in their properties.
                        Much the same comment applies. The Tenants' Tribunal Kangaroo Kourt Klutzes will take their cue from FarGoneBoy et al.

                        Pursuant to the RTA, LLs will have no rights - basic or otherwise.
                        Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                        Comment


                        • Originally posted by learner View Post
                          Hello Artemis
                          If the landlord gives the Tribunal the criteria that are used to offer tenancies to prospective tenants, and the assignee that the current tenant appoints does not meet those criteria, then that must be an acceptable reason to decline the assignment. After all, Immigration New Zealand has criteria for entry to the country, and Kaianga Ora and other social housing providers also have their criteria for acceptance for their properties. Landlords must surely be entitled to be allowed to choose tenants that are acceptable to them as well.

                          We'll have to wait to see whether the Tribunal adjudicators uphold a landlord's basic right to control who is allowed to live in their properties.
                          What say the landlord does not like the condition inside and out of the proposed assignee's car? Or that they know someone else called Phyllis and they are mean. Or they are overweight and might break the furniture. Or they just don't like them.

                          All those are reasons that a landlord might decline a new tenancy but one assumes wouldn't dream of specifying. But for assignments landlords will have to give reasons in writing and be prepared to provide evidence if challenged in the TT.

                          Reasonable reasons to a TT adjudicator might include credit check, tenancy record, police check for each assignee. That potentially takes time and cost, though some may be recovered under the RT Act. Landlords who might be faced with these costs and time should probably give an invoice to the assignees to be paid in full on offer.

                          Would the reason - your name is Phyllis - be considered reasonable by an adjudicator. Doubtful. Maybe worth a try though especially if the person's name is Phyllis!

                          Comment


                          • The HUD FAQ document on the subject of assignments takes some particular views that to me indicate a wide interpretation of the Act. The views don't take into account that for a new tenancy a landlord can decline on whatever grounds they like, within the law. HUD also seems to think assignment relates only to fixed term tenancies but that is not what the law says.

                            Comment


                            • The approach (for new or assigned tenancies) by Keys, here, should now become another minimum requirement, in addition to credit checking and what's suggested in this post.

                              What Keys says is that the potential assignee must agree to the police check and sign the form required to get it. Failure to do so . . . .
                              Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                              Comment


                              • Originally posted by artemis View Post
                                The HUD FAQ document on the subject of assignments takes some particular views that to me indicate a wide interpretation of the Act. The views don't take into account that for a new tenancy a landlord can decline on whatever grounds they like, within the law. HUD also seems to think assignment relates only to fixed term tenancies but that is not what the law says.
                                Why would the tenant want to assign for a periodic when they can leave with 21 days notice anyway?
                                Assignment is seen as a reasonable way a person can exit a fixed term.
                                If you don't like the person they assign to just let them leave.
                                I think you are trying to make it harder than it is.

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