Banned: Rental bidding; No reason giv terminations plus Rent Increases Min. Annually.

[PC]

The Government will end no-cause evictions and ban rental bidding in an upcoming reset of rental laws.

It will also limit rent rises to once a year, up from the current limit of once every six months.

These changes will be made well over a year since then-Housing Minister Phil Twyford finished consulting on them in October 2018.

https://www.stuff.co.nz/national/politics/117443114/government-to-ban-rental-bidding-and-end-nocause-evictions

Sneaky, sneaky - Sunday always a good time to announce more thieft of property rights.

[apartmental]

Hmmm, hopefully the landlords here made submissions on this? Apparently a pretty low number was received.

Yet it seems they actually listened to submissions, with new rules for anti-social behaviour and late rent - though unfortunately it all has to be done through the dreaded tenancy tribunal.

The no-cause thing will likely result in bad tenants finding it increasingly difficult to get a rental.

Certainly agree with banning rental bidding and restricting rent reviews to once/year.

More from the Stuff article:
"Under the Government's planned changes landlords will have to provide some reason to end the tenancy - including selling the property, demolishing it, or changing how it is used. They will also be able to use a new "anti-social behaviour" clause to move on problematic tenants if three complaints are received about the tenant's behaviour in a 90-day period and an application is made to the tenancy tribunal.

Rent being paid more than five working days late three times or more in a 90-day period would also be a valid reason, although this too would require a trip to the tribunal.

When a tenancy is ended for a valid reason, such as a landlord selling a house, they will now need to provide 63 days of notice - up from 42.

Rent rises will be limited to once a year, up from six months now.

And "rental bidding" would be explicitly banned, and landlords listing properties will have to explicitly set out what the rent is."

[Rosco]

I actually don't think these are that bad
- 63 days notice if selling. Just means have to be organised and plan!
- 3 compliants within 90 days, then tenancy tribunal helps a bit
- 3 late rents within 90 days, then tenancy tribunal helps a bit
- once a year rent increases. Just means rent will go up more but less often. Not sure whey the change to this or how it will change anything for tenants or landlords?

Ross

[Don't believe the Hype]

I actually don't think these are that bad
- 63 days notice if selling. Just means have to be organised and plan!
- 3 compliants within 90 days, then tenancy tribunal helps a bit
- 3 late rents within 90 days, then tenancy tribunal helps a bit
- once a year rent increases. Just means rent will go up more but less often. Not sure whey the change to this or how it will change anything for tenants or landlords?

Ross

I'm with you on this Ross.

There is however a tendency to block up TT with things that could be a clear cut rule i.e. the complaints or late rent. The action shouldn't need TT approval but there should be a mechanism for the tenant to take it to TT if they believe the rule had been used incorrectly. This would mean fewer meetings at the TT.

Rent increases - historically we haven't increased rent by more than $20/wk and where we had been well below market we might do 6 monthly increases until we were at an acceptable level. By making that 6 monthly increase unavailable we may need to reconsider our $20/wk self imposed cap where we need to get back towards market rent.

[PC]

12 month fixed terms might be the go. Unless banned. More stupid arbitrary rules dictated from on high that will make life worse for tenants.

[Don't believe the Hype]

Why 12 months?... if you do 6 month fixed terms you have more flexibility and each lease is a new lease so can set the rent accordingly.

[Spoook]

Government to ban landlords putting rent up every 6 months???????

This is not going to help landlords recover the costs incurred by the recent Healthy Homes rules.

[Learning]

Why not? Most would have some clue of how much they were going to raise rents by. So instead of splitting it over 6 months add 50% and make it yearly.

In 12 years as a LL I've never raised rent twice in one year.

[Spoook]

During any of my tenancies, I have only ever increased rent once but I can see the need coming up. With a bill of about $8plus K to fulfill the most recent regs, do I have a choice?

[Rosco]

I'm pretty sure they are looking at turning fixed tenancies into periodic, so you would also need a reason to cease fixed term tenancies!

[Rosco]

So just do it once every 12 months for a bigger rent increase! I can't see the benefit for tenants in this rule change, and I also can't see the issue for landlords.

[elguapo]

I'm pretty sure they are looking at turning fixed tenancies into periodic, so you would also need a reason to cease fixed term tenancies!

I'm sure they have a goal of giving tenants right of tenure. Not sure if they will be above board about it, or just slide it it.

[Rosco]

I'm not great on tenancy laws, but from talk on facebook groups, this is them sliding it in. Expected May / June 2020.

Ross

[Perry]

Look Over Here - Not Over There!

From the perspective of PT Forumites, what were / are the problems that these measures were aimed at? (Were there any?)

Looks a lot like window dressing by comrade Taxcindarella et al, than anything else. A good distraction from the 10,000 affordable houses debacle, for, if they'd done that, scarcity and cost of residential rentals and related problems would adjust themselves via market forces, would they not?

Also from the perspective of PT Forumites, what were / are the likely unintended consequences of these measures?

[Davo36]

Why 12 months?... if you do 6 month fixed terms you have more flexibility and each lease is a new lease so can set the rent accordingly.

Only if it's a new tenant. If you're renewing with the same tenant then surely the rent can't go up every 6 months.