Consultation on proposed RTA changes

[artemis]

Will it be like the consultation on single use plastic bags? Consultation document published, open for a month or so, next minute Captain's Call - it's happening anyway so we don't care what you think.

Interesting that proposal is for the 42 days on unconditional sale to be extended to 90 days. Not practical and if that is approved, there will be plenty being sold before that comes in.

No cause termination is a key part and likely to be ended. Wonder if the government has thought that one through.

http://www.mbie.govt.nz/info-services/housing-property/residential-tenancies/rta-reform/consultation

[Don't believe the Hype]

90 day settlements are common in Australia so maybe just longer settlements become a thing here.

[Perry]

As Artemis observes, Labour is a renters' party, so wont give a toss about what LLs concerns are.
Especially with noddy media on their side.



As for equalitarian treatment for LLs and tenants, only in your dreams.

A few links to the Labour Proletariat broadside of stories for the day.

https://www.stuff.co.nz/business/106598109/investors-warn-rule-changes-could-be-bad-news-for-tenants

https://www.stuff.co.nz/business/industries/106588276/tighter-regulations-signalled-for-inhome-child-care

https://www.stuff.co.nz/business/106590207/government-plans-to-change-the-boarding-house-rules

https://www.stuff.co.nz/business/industries/106256411/Rise-of-property-management-industry-significantly-disadvantaging-tenants

https://www.stuff.co.nz/business/106588008/Landlords-planning-to-raise-rents-due-to-tenancy-overhaul-may-struggle

https://www.stuff.co.nz/business/106587407/Limits-on-rent-increases-and-an-end-to-rental-bidding-as-Government-reviews-rental-rules

[Courham]

It has certainly been an interesting couple of days of the media onslaught.

My wife and I decided to sell one of our rentals the other day, some of the proposed changes just reinforcing our decision. Will be interesting to see the unintended consequences of this one when it comes to trying to buy a first home with existing (non fixed term) tenant- I can see the whole process becoming gridlocked!

Craig

[artemis]

There is a 62 page discussion document and a 94 question online survey.

Those who respond will mostly be advocates for some lobby group or other, maybe taxpayer funded. That was certainly my experience last time I sat in on housing related Select Committee hearings and read submissions made.

I am still considering my response and thinking - why should I spend time and effort on a measured and detailed response knowing it will be ignored. Current thinking is to send a brief email submission saying - bring it on, the more there is a shortage of rentals the better off I will be. Higher rents, excellent tenants.

[Sportsvee]

I wish you all the very best for the future.

Personally I'm cashing out (put the houses on the market almost a month ago) and putting my money elsewhere. This all just reinforces my decision.

[Denis newman]

When will enough be enough LLS

The attacks on LLs are coming through thick and fast. The government is working on ways to erode your rights as business owners / workers / humans and the only group I see remotely interested in fighting back is the investors federation via Andrew King. Im the same as you too busy getting on with it and happy to leave it to Andrew... in other words im a woose. That being said when do you think we will all get to breaking point and stand up for ourselves.
Almost on a daily basis we hear how the government and tenancy groups want to reduce our business to nothing but charity... but what about our fight back... what do we want.
Heres a start:
Tenants must pay Interest on late payments (All types)
Tenants pay for all damage that is caused whilst they are the tenant (Regardless if it was a visitor accident or any other reason)
If rent is 7 days behind the tenancy can be terminated (At the LLs discretion) and personal assets held until payment recovered, or sold to recover.
Add your wish list here

Heres one for you all, Landlords go on strike 31.12.18 all private landlords issue tenants with termination letters. The government now has 42 days to come up with a fair and reasonable "Renter" policy to LLs, failure to do so and they will have 100k+ extra state house requirements all at once. LLs will not release those houses to the rental market until the strike is over.

Your comments welcome

[Sportsvee]

I reached my limit already and am selling up. Simplist solution for me.

Plenty of other investment options out there with far less costs/out goings/ headaches.

I do like the idea of a mass eviction notice, but the bluff would be called. On the plus side, good way of getting new tenants in at a higher quality test and rent.

The way I see it, the way LLs have been treated has been ongoing and meets the definition of bullying.

Believe Craig David sung it best with "I'm walking away..."

[Perry]

The red devil or the deep blue sea? More woe for all:

https://www.stuff.co.nz/business/property/106608665/pet-or-property-good-quality-tenants-have-good-quality-pets

[artemis]

The red devil or the deep blue sea? More woe for all:
https://www.stuff.co.nz/business/pro...d-quality-pets

That article is about landlords, tenants and pets. What is interesting are the comments. A whole lot of them are from landlords saying they have sold up or are going to.

[Don't believe the Hype]

Hi Artemis - you seem well versed in submissions, would it be possible for you to post a submission here for people to copy the parts they agree with into individual submissions? You'd be more likely to get people to make submissions and have a common thread in the different submissions.

Nick G - Might be worth making the same suggestion on the FB forum you manage.

[Don't believe the Hype]

Some ideas for the submission:

Accidental Damage - Damage is damage. If you or your guests cause the damage you are responsible for paying for the repair.

Non Payment of rent - This is theft. If you don't pay for something you use you're stealing. Unpaid rent should incur interest payments and or late fees like any other unpaid debt.

Tenant Insurance - Think of this as a risk based bond. An insurance company take the bond and guarantees payment for all things you can claim against the bond. Good tenants would have lower premiums therefore lower bonds over time. The process would be more efficient than the current system and there is a HUGE incentive for the tenants to look after the property they're in and pay rent on time.

Rent Guarantee Insurance - The government should initiate an insurance scheme where tenants pay an annual cover (maybe part of their bond) so the insurance will pay rent if the tenant stops paying rent. If a tenant doesn't pay their rent or pay back the insurance company they will be unable to get this insurance package. This will free up TT time to focus on other things.

Non Payment of Rent Tenancy Hearings - TT must have a maximum wait time to hear a case i.e. 2 weeks with an application made once rent arrears are 2 weeks. This means a decision is made

TT centralized collection of unpaid rent - Where TT agrees to a rental recovery program the TT could be the central collection for this would make the system more efficient as a result costing less.

Anti Social Behaviour - Need to make it easier to remove people who are antisocial or cause problems for neighbors. Burden of proof needs to be clear and actionable

Pet Bond - you want a pet, you need to be prepared to pay the cost of damage. An additional bond to cover common pet issues - scratched floors/doors, soiled carpets, damaged curtains etc. It should also be mandated that a professional clean at the end of tenancy.

Illegal activity (i.e. drug use) - Immediate eviction.

More certainty for renters - If the government want to introduce caps on rent increases etc then all risks associated with ownership of the property move to the landlord ( If our costs go up we can't then recover these costs). They also say they want to create certainty of tenancy for long term renters. There might be a number of long term landlords who would prefer the option to rent their properties under terms more like commercial leases where a family can get a 10 year lease , responsible for outgoings with agreed renewal and rent increase agreed upfront and a make good clause as per commercial leases

[artemis]

This issue has lit up comments over at Kiwiblog - comments from all points of view. Left, right, neither, landlords, tenants .....

Worth a glance.

https://www.kiwiblog.co.nz/2018/08/rental_changes.html

[SimonW]

I wish you all the very best for the future.

Personally I'm cashing out (put the houses on the market almost a month ago) and putting my money elsewhere. This all just reinforces my decision.

Unfortunately this is exactly what the little red army wants you to do..... "Yay more homes for first home buyers" will be their triumphant cry.

Nobody seems to understand the economics of it. Now all these people who have been "forced" into rentals for so long think they will suddenly be able to get on the property ladder, but alas they will turn up at their bank and apply for a loan, only to be told that because they have 4 children, the bank's algorithm says they can't service a mortgage. But oh sh*t, now there's a scarcity of rentals due to investors exiting the game...

But I agree Sportsvee, I am tempted to sell up now while the going is still relatively good, pay off my own mortgage and get into some small scale developing or maybe even commercial. The problem with this is that looking at Trademe last night, I think a lot of investors may already have made the same decision - there are an awful lot of 2 bedroom investor type properties for sale in Christchurch right now.

[Perry]

Fairness, you say? The Gummint Wouldn't Have a Clue

Is it worth 'taking a leaf out of the book' of the biased media sensationalists and using provocative and assertive, perhaps even emotional language? Something like:

Do you have any idea of the heavy anti-LL, pro-tenant, pro-government bias in the Residential Tenancies Act?

Potential examples:

Did you know that the way the Residential Tenancies Act is presently written allows a tenant to borrow money from a landlady, without her permission, without paying interest - and - in many cases - without having to pay it back?
(Artemis' comment, in effect)

Did you know that the way the Residential Tenancies Act is presently written makes it unlawful act for a landlady to not provide the premises in a reasonable state of cleanliness, but it is not an unlawful act for a tenant to not keep the premises reasonably clean and reasonably tidy.

Did you know that the way that Phil Twyford wants to fiddle the Residential Tenancies Act will likely make it an unlawful act for a landlady to give a 90 end-of-tenancy notice without also giving a reason, but it will not be an unlawful act for a tenant to give a 90 day end-of-tenancy notice without also giving a reason.

How is that equitable? Oh, that's right: it's not. It's a Labour gummint pandering to a small section of its core voters.

As for the brain-dead expression, "no-cause terminations . . . ."

Of course there is a cause. Either the tenant wants to vacate or the LL wants the tenant to vacate. What is really meant is "no-reason-given 90 day end-of-tenancy notice."

As for my allegation of government bias, let someone ask Dhil Twitford what he did with the millions of dollars in tenants' bonds which gummints have pocketed in recent years?

Watch out for the flood of crocodile tears.