Consultation on proposed RTA changes

[Perry]

Surprise, Surprise!

And in the article - Mike Butler guest commentator and property investor says:

Statistics show that 90 percent of all applications made to the Tribunal are made by landlords, with three quarters of those for rent arrears. In other words, for every landlord failing to meet their obligations, there are nine tenants who are not meeting theirs. Perhaps the Minister needs to address problem tenants before he attacks landlords.

But, but, but, according to the tenants-are-angels implication in his OIA reply, Steve Watson, National Manager, Tenancy Compliance and Investigations Team, says:

To date activities and interventions undertaken by TCIT have focused on the landlord sector. Landlords, as providers of residential rental accommodation under the RTA are seen as carrying a greater risk associated with non-compliance with their obligations in relation to tenants.

S 40(1)(a) of the RTA says:

The tenant shall (a) pay the rent as and when it is due and payable under the tenancy agreement

But, for some strange reason, not paying the rent is not declared to be an unlawful act! How odd!

Anyways, if anyone on these forums ever doubted that the Tenancy Services Compliance and Investigations Team (or the Chief Executive) was 1,000% pro-tenant and 10,000% anti-LL, here's the response to my questions:

1) How many Residential Tenancies Act breaches by tenants have been identified and acted
upon by the Tenancy Services Compliance and Investigations Team (or the Chief Executive) of
its own volition?
None

2) How many breaches of the Residential Tenancies Act by tenants have been reported to and
acted upon by the Tenancy Services Compliance and Investigations Team from landladies or
landlords?
None

3) Where any RTA breaches by tenants have been identified, has The Tenancy Sen/ices
Compliance and investigations Team used any interventions and enforcement activities to
ensure that those tenants comply with their obligations under the Act?
No

4) Has the Chief Executive assisted in enforcing an Order of the Tribunal against a tenant and if
so, on how many occasions and how successful was that assistance on those occasions? (Ref;
s113RTA)
No

Source: DOIA 1819-0360 letter dated 17 September 2018.

[Wayne]

That, Perry, would make an interesting start to a newspaper article.
Never happen unfortunately.

[Perry]

Good Point

Well, do you or any other forumite know of a media person who might make use of the information?

[flyernzl]

The Ministry of Business Innovation and Employment (MBIE) has released two reviews that will have a large impact on our industry.

The two reviews are on the Residential Tenancies Act and what standards should be imposed as part of the Healthy Homes Guarantee Act.

The NZPIF will be making a submission. However tenant groups are encouraging tenants to make individual submissions and are holding on and off-line seminars to encourage and help them.

Because of this we really need as many landlords as possible to have their say as well.

To help achieve this the NZPIF has written two reports to summarise what it is being proposed, to set out the questions which MBIE is asking and to provide a short summary of the NZPIF view on the proposals.

The report on the RTA Review can be found here:

https://www.nzpif.org.nz/news/view/59375

and the report on the proposed standards for the Healthy Homes Guarantee Act can be found here:

https://www.nzpif.org.nz/news/view/59376

We have also developed a survey on each of the reviews and we encourage you to take both. The information we obtain from these surveys will help us understand what rental property owners are thinking and they will also provide us with evidence that we can use in our own submissions.

Take this link for the survey on the RTA review:

https://www.surveymonkey.com/r/RTAreview

Complete this survey about the standards proposed by the Healthy Homes Guarantee Act

https://www.surveymonkey.com/r/HHstandards

These are large and important reviews that will have a big impact on our industry. We need MBIE and Government to have the right information so that they can make informed decisions about how our industry is going to change.

Please take the time to have your say.

[Perry]

In addition to Donna's comments in an earlier post, here's a web site that PIs might find a useful resource.

Stop the war on tenancies

[Perry]

Morons United Under Labour

If ever you entertained the slightest doubt that Dhil Twitford was a complete, total and utter moron, look no further than the item quoted below.

Housing Minister Phil Twyford's reforms likely to raise rents, officials warn
24 Sep 2018

Housing Minister Phil Twyford's package of tenancy law reforms would likely drive up rents by causing some landladies to get out of the market, officials have told him. They said that while most of the tenancy law overhaul and other changes to the rental market considered by the Government would not have much of an effect on their own, their cumulative weight could lead some landladies to sell their properties to owner-occupiers.

Because owner-occupiers typically have less people in a house than renters, this could lead to a further shortage in rental properties - and higher rents. Twyford said the advice was "only a scenario" and he "wasn't assuming that is going to happen."

[Perry]

Well, Who'd've Guessed It? Not Dhil, That's For Sure!

Shock! Horror!

NZ weekly rent hits a record high in August - Trade Me
25 Sep 2018

Rents continue to rise around New Zealand, pushed up by a shortage of properties and tenants trying to get in before the summer rush, Trade Me says. The country's median weekly rent in August was up 6.7 per cent on a year ago, at a record high $480. "Over winter demand has kept prices high and we're watching with interest to see what they'll do in summer. We suspect they're going to jump to new heights in the New Year."

Well done! Another own-goal by the intellectually-barren Neanderthaler, Dhil Twitford.

[Wayne]

Well done! Another own-goal by the intellectually-barren Neanderthaler, Dhil Twitford.

Rents have been going up for ages haven't they but now they're attributed to Twitford?
Whose fault was it before?

[Perry]

NZ weekly rent hits a record high in August - Trade Me

Well done! Another own-goal by the intellectually-barren Neanderthaler, Dhil Twitford.

Rents have been going up for ages haven't they but now they're attributed to Twitford?
Whose fault was it before?

My comment was in relation to "record high" and Dhil Twitford's blithe presumption that his advisory officials have got everything wrong.

How this is all going to shake out is guesswork. My guess is that the net result will be unintended consequences - being bad consequences for many tenants.

[Perry]

SUBMIT AGAINST ABSURD STANDARDS FOR RENTAL PROPERTIES

A heating standard proposed by the Winston Peters - Jacinda Ardern government of NZ that presumes occupants of rental properties are in peril if the temperature falls below 18C is absurd.

The Helen Clark Government help tip itself out of power 10 years ago when it set about legislating on shower heads.

As owners of rental properties, you should tell MBIE what you think of the new standards proposed for heating, insulation, ventilation, moisture control and draught-stopping.

Be warned, the Government wants every owner to spend up to $10,000 on each dwelling and this will be paid for by tenants.

The online submission questions provided by the Government seek narrowly focussed responses that force you to choose between accepting new, expensive options and new even-more-expensive options. There is no option to choose to continue with the status quo.

An analysis of the standards shows that they are probably already being met in most rental properties and there is no need to spend so much on each rental dwelling.

Please click here to see why. (At the bottom of the page, you'll see: Downloadable Submission Question Form: Standards Submission questions.)

Print out, then complete the submission document and mail it in to the supplied address.

Don't delay - do it now.

[Perry]

Ground Control to Major Phil

Napier rental squeeze leaves families in 'absolute desperation'
26 Sep 2018

A Napier property investord who posted an advertisement for a one-bedroom unit on TradeMe got more than 900 inquiries within 24 hours. "We pulled it because we got 946 replies... I honestly couldn't believe there were that many people wanting a place." "We put in the ad that it was not suitable for families or children, but they were quite willing to say the kids can sleep in the bedroom and we'll sleep in the lounge."

Hawke's Bay Properties director Dee Penno was not surprised. "There is just absolute desperation out there," she said. "You get all these applicants and how do you pick? Which desperate person do you pick?" More than 200 inquiries had already been made in response to a current TradeMe ad for a one-bedroom flat in the Napier suburb of Maraenui, available for $260 a week.

Prospective tenants would often offer more than the advertised price in order to secure a home, Ms Penno said. "And I also have people that ring up literally two minutes after I've listed it wanting to see the house before anyone else, begging down the phone." Proposed new requirements for rental properties, such as insulation and heating, would make the situation worse, Ms Penno said.

A lot of landlords had sold up over the last 18 months, because of the buoyant market in Hawke's Bay, she said. And she predicted it would only get worse, if stricter requirements for rental properties came into force. "It is scaring a lot of landlords off... and I think we will see a lot of Mum and Dad investors with one rental property saying 'this is too hard, we're out'," she said. Hawke's Bay rents had risen the fastest in the country, jumping 14 percent in the last year to a record high of $480 in August, according to figures from TradeMe.

But, don't worry: Dhil Twitford said that such prospects were "advice from officials" that was "only a scenario" and Dhil "wasn't assuming that is going to happen."

Phil the dill - lost and all at sea.

[Perry]

SUBMIT TO RETAIN RIGHT TO END TENANCIES

A government proposal to prevent owners from ending tenancies would make some rental properties unmanageable should lawless tenants take over.

Most tenancies are problem-free but there is a small group that attracts the police and they would be impossible to evict should the proposal become law.

The only way to end such tenancies would be to take evidence of disruptive behaviour to the Tenancy Tribunal, but disruptive tenants could intimidate witnesses into silence which means the owner or manager would be unable to end the disruption.

The first to be disadvantaged by a ban on ending tenancies are the neighbours of those lawless tenants who can’t be moved on.

Owners of rental property should speak out against the proposed changes to tenancy law that will:

• prevent owners from ending tenancies
• ban fixed-term tenancies
• allow tenants to modify a property
• allow tenants to keep pets
• enable Government officials to enter boarding houses at any time.

The current Government does not understand that owners and tenants are in a tenancy together, and an extra problem for one party means extra problems for everyone.

The online submission questions provided by the Government are biased to exclude any support for the status quo.

The questions have reformulated to enable balance between the rights and responsibilities of both owners and tenants.

Please print out and complete the reformulated submission document and mail it to the address supplied.

Don't delay - do it now.

Look for . . .

Downloadable Submission Question Form: Tenancy Reform Submission questions

. . . at the bottom of the page.

[Wayne]

The online submission questions provided by the Government are biased to exclude any support for the status quo.

There are a few questions where they ask 'do you want this or that' and there isn't an option for 'neither - keep it as it is'.

[Keys]

There are a few questions where they ask 'do you want this or that' and there isn't an option for 'neither - keep it as it is'.

You put that in the context of your answer.

There is a "no-cause" phrase which they used. I prefaced each of my answers with:

I dispute the wording “no-cause” There is always a reason to issue termination notifications.

[flyernzl]

There is always a reason to issue termination notifications.

Agreed. Strongly.