NZ - "one of the least tenant-friendly regimes in the developed world"

[klauster]

True housing in NZ is different to the EU

The general opinion is NZ’s tenancies are different from the EU (I would exclude England). Indeed, you rent in EU for life that means the tenant can move at any time, the ll must have a defined reason to exit a tenancy.
That works well because also the LL is protected and can enforce the law. Not so in NZ. The ll is on risk and the 90 days notice is not a protection from loss at all. LL can be ruined even before tenants move out. This forum offers plenty of examples.

The tenancy in Gemany e.g. is similar to owning an apartment. The BodyCorp (in this case the landlord) owns land and building and passes on related expenses to the tenant as rent. Garaging, central heating, electricity, water, council services, etc are individually charged to the occupant’s household. That is perfect and makes the ll's life easy.

Normally the tenant renovates before moving in and owns everything in this house (or flat). That might include lamps and fittings, wardrobes, kitchen, carpets, window dressings, etc. Because of related costs for renters they don't move often. That also limits damage claims if any to a minimum as tenants treat much better their own stuff. LLs have lower costs and less problems.

The price range for rentals starts from total empty to fully furnished and equipped – hard to compare with NZ’s housing. A averagel NZ house is compared to EU standards a rain shelter.

LLs have to qualify for a mortgage, sooner or later for a “red-green” WOF, why not tenants for a renter’s license?

[Perry]

Because that would be anti-socialism.

[Maccachic]

Still can't get my head around how it works really.

I like the last suggestion.
Would give more work for the house movers

Have a look at Ikeas kitchen this is where most I knew purchased theirs from. Plumbing electricity was capped of on exit ready for the new tenant to connect to.

[flyernzl]

I am told that, in India, if a tenant stays in a property for more than one year they automatically have a permanent tenancy and there is no way that the landlord can get them out.

The upshot is, of course, everyone has to move on the 365th day.

[anbessa]

But, if you have a society (like many European ones apparently) that has a very high % or renters and the population is not mobile then they probably want to make the house their home.
So you need a mentality on all parties that supports that.
Having the possibility that the LL can lick you out at 90 days notice may not be what is required.

I agree. NZ is moving to lower levels of home ownership. Moving to a system which recognises renting as a permanent feature for many, as opposed to envisaging it a temporary stop ont he way to home ownership, would be a good thing IMO and needs legislative change. I'd be interested in any proposals that strengthen landord's hands when it comes to bad tenants who don't pay rent or damage property, while also providing more security of tenure for responsible tenants

[artemis]

I agree. NZ is moving to lower levels of home ownership. Moving to a system which recognises renting as a permanent feature for many, as opposed to envisaging it a temporary stop ont he way to home ownership, would be a good thing IMO and needs legislative change. I'd be interested in any proposals that strengthen landord's hands when it comes to bad tenants who don't pay rent or damage property, while also providing more security of tenure for responsible tenants

What legislative change is needed? Something like the Green Party proposes? Are you sure?

"The Green Party will amend the Residential Tenancies Act to provide tenants with the right of renewal on any tenancy. We want good tenants who follow the rules to be able to stay in their home for the long term. Our changes to tenancy law will mean that people renting will be able to enjoy the security and stability that is their right. It will enable tenants to put down stronger roots in a community. We will also ensure tenancy agreements include a formula for calculating future rent increases, and rent increases will be limited to no more than once every 12 months.

[anbessa]

Not sure that helps much. I would have thought most residential tenants are on periodic tenancy agreements.

I'm not suggesting anything specific artemis because I haven't thought it through properly, just commenting on the general idea of it.

[flyernzl]

The problems lies in balancing security of tenure for tenants with equal security for landlords.

So a new tenant moves into your property with, at the time, every intention of staying there for years.
A month or two later they get offered a really good job promotion overseas - what happens then?
Do you say "No they can't go, as they have committed themselves to a long-term tenancy".
Equally. a month or two after that tenancy starts, the landlord is offered a really good price for the property from buyers who need vacant possession because they want to live in it themselves.
Can he sell?

How do you balance that out?

[eri]

nz seems to be 1 of the least billionaire friendly countries too

even when they try to give money away

they are never good enough for the people spending the money

not to worry

to make up for the millions he gave

we'll just raise taxes on the ones that stay

once for the money we'd already planned to take off them

and once again to make up for glenn

.............................

Sir Owen Glenn has become so disillusioned with New Zealand he plans to close his foundation and concentrate his charitable efforts overseas.

The millionaire philanthropist says he has effectively been driven out of New Zealand, possibly by people with political interests.

Sir Owen also cited a media obsessed with unearthing scandal as a factor in his decision to quit the country.

"I've literally been driven out of New Zealand mentally. I've closed down my foundation there."

He believes he is the victim of the tall poppy syndrome.

"Why? I'm not hurting anybody. I'm doing the opposite. I've given more money away in New Zealand than anybody else ever as a philanthropist. Will somebody please tell [people] that?

"How many good Kiwis live overseas because they don't get a square deal Downunder?"

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11317049

[artemis]

He certainly seemed to be undermined by people with an agenda. There's a lot of it about these days. Perhaps it is not new, but seems more divisive now. Pity.

[speights boy]

Moguls at war

Warriors owners Eric Watson and Sir Owen Glenn are locked in a new, international legal stoush - with hundreds of millions of dollars in dispute involving the pair's joint-venture investment company.

Sir Owen is taking legal action to retrieve money he says he loaned to the investment company - but Mr Watson disputes his claims and his lawyer revealed last night that he was taking his own legal action.

The battle over funds held by British Virgin Islands-registered company Spartan Capital dwarfs the $6 million dispute between the men over Sir Owen's stake in the Warriors rugby league club. "It's a hell of a lot more money," Sir Owen said.

Asked to confirm the Herald's information that the sum claimed to be involved ran to hundreds of millions of dollars, Sir Owen said: "Yep. That's all I can say. It's sub judice."

[elguapo]

I am told that, in India, if a tenant stays in a property for more than one year they automatically have a permanent tenancy and there is no way that the landlord can get them out.

The upshot is, of course, everyone has to move on the 365th day.

In the UK there are what are known as sitting tenants who have tenure for life and are rent controlled. Landlords fear them more than death.

[propertysearch]

If I rent a car then I have to take it back at the end of the lease. When a lease is up a tenant is obliged to leave. If a tenant has no equity in a property then why would it be otherwise?
Talk about 'rights' of tenure are a sham. Its not bad enough that bad tenants can lead landlords on a merry chase and demand one issue after another at the landlord's expense but now talk about permanency???
Given the headaches in being a landlord in NZ I'll be finding other more palatable investments should any legislation of this type come in. I can get my 5%+ in the sharemarket and/or other ventures without all of this sort of nonsense. And then the government can look after people themselves and find out how hard it is dealing with (some) abusive, ungrateful and manipulative people.
Lets hope there is reason in this debate.

[Perry]

Reason? From politicians?
You poor deluded fellow.

[Fond Memories]

Yes it is true. We have lived abroad for a number of years - being a landlord and tenant, and this is the very worst country for renting I have ever come across. When we rented out our house in the UK, we had a fixed term - we would never have thought about dishonoring this and we had very good tenants. If something broke we would fix it.
While renting out our house in the UK we rented in Switzerland. That is a fantastic place to rent. It is always assumed that the lease is long term (unless previously stated) and even though they can get you out, they don't think to do so. Why would you try to sell someone's house from under them. You can paint it and really do what you like but when you move out (which could be 20 years later) you are meant to repaint the house and make it good. While you rent it, they think of it as your house.
After that we went to Singapore. There everyone signs a 2 year lease and again these are truly honored. You are inclined to move after 2 years because they try to put up the rent so is easier to find somewhere else and renegotiate.
New Zealand? Our whole experience here has been awful. 1st 2 houses we rented we said we wanted log term rents and after 6 months they both decided to sell. When we got upset and were not as cooperative about viewing as we could have been - WE were not being reasonable. No offer of reducing the rent and always told we had to give reasonable access. Both time we moved out as soon as we could and both times they took the house off the market, re-rented it and then put them back on the market. The landlords were so busy thinking about their own pockets, they never gave consideration to the tenants and their pockets. 3rd time we also said we wanted long term. One house we viewed they said they would sign a long term lease - the man's wife then let slip that they owned another rental property with a set lease. Apparently if as a landlord, if you want to move into the house you are renting out, then the lease agreement doesn't count. So they were going to move into the other house and then sell it and then move back into their other house. Happy to say we have found a great long term lease. Landlords over here are greedy and really don't give a toss about their tenants. Reading forums on this website just makes me think even worse about the landlords. Next time landlords write on this forum, they should take time to think about the tenants and that these are people's homes and lives they are giving such little regard to. Often these people don't have loads of money and moving costs them.