Have Your Say
The Ministry of Business Innovation and Employment (MBIE) has released two reviews that will have an enormous impact on our industry. You only have a short time to have your say on these proposals.
They are the Residential Tenancies Act and what standards should be imposed as part of the Healthy Homes Guarantee Act.
The NZPIF and PIAs around the country will be making submissions. However tenant groups have been organising people to make submissions on these two issues and currently more tenants have had input than rental property providers. It is imperative that you and as many rental property owners as possible have your say.
To help achieve this the NZPIF has written two reports to summarise what it is being proposed, set out the questions which MBIE is asking and provided short summary of the NZPIF view on the proposals.
You can complete a submission on the RTA by completing a NZPIF template here.
THE RTA REVIEW
The RTA review is proposing wholesale changes to tenancy laws. The largest changes are to provide tenants with more stability. These include:
- Removing 90 day no reason notices to end a tenancy
- Allowing tenants to cancel a fixed term tenancy if their circumstances change
- Giving tenants the right to renew a fixed term tenancy even if the landlord doesn’t want to
- Removing fixed term tenancies completely and changing periodic tenancies to “open ended tenancies” with restrictions on landlords being able to end the tenancy
- Removing the option to end a tenancy so a property can be sold
- Only allowing buyers of a rental property to end a tenancy if the buyer is moving into the property
Additional proposals are allowing tenants to have pets as of right and allowing tenants to make minor modifications as of right. The MBIE Discussion document can be found here.
THE HEALTHY HOMES GUARANTEE ACT REVIEW
The Healthy Homes Guarantee Act Review will make landlords top up current insulation to current standards, even though the insulation improvement is less than 10% but the cost is nearly the same as completely installing new insulation.
The review is also effectively making every rental property have a heat pump installed even though many tenants with heat pumps don’t turn them on. The NZPIF believes this will increase rental prices for installing heat pumps by around $15pw, which will be a cost to tenants that they do not want. Research shows that landlords are already providing a high number of heat pumps, showing that they are willing to do so when tenants want it. Compulsory heat pumps will simply increase some tenants rent for no benefit.
You can submit a submission on the Healthy Homes Guarantee Act here
Submissions do not need to be long and in fact are better if they are short and sharp, explaining your thoughts and experiences you have had to back up what you think should or shouldn’t happen.
We strongly encourage you to take the time to have your say on these matters as they will have an enormous impact on our ability to provide rental property.