Residential tenancies reforms announced

Building Issues Minister Clayton Cosgrove has announced proposed amendments to the Residential Tenancies Act 1986 and to landlords’ and tenants’ advice and dispute resolution services.

Sunday, October 1st 2006, 12:00AM

by The Landlord

Cosgrove said “The key issues identified in the review of the Act included a lack of stable tenure for longer term tenants, variable standards of rental housing and a lack of knowledge among landlords and tenants on their rights and responsibilities”.

Proposed amendments include new property entry rights for landlords for the purposes of an appraisal by a real estate agent or building inspector, and allowing landlords to recover reasonable debt collection costs incurred in enforcing Tenancy Tribunal Orders through a private debt collection agency.

It is also proposed to make some tenant breaches unlawful acts that can result in exemplary damages being awarded, as an alternative to eviction. These would include sub-letting, assigning a tenancy without consent, over-populating the premises or becoming a problem neighbour.

The government has also instructed the Ministry of Justice to examine faster and easier ways for landlords to collect unpaid rent.

It is proposed that the Tenancy Tribunal be able to make an order against a guarantor of a party to a tenancy agreement. Currently if a landlord wishes to pursue the guarantor to a tenancy agreement (eg for rent arrears) they cannot go to the Tenancy Tribunal – they must go to a District Court or Disputes Tribunal.

Landlords who breach building health and safety regulations may face financial penalties payable to the tenant.

Greater protection for fixed term tenants is proposed by compelling landlords to notify tenants at least three weeks before the tenancy period ends if they are not going to renew the contract. Fixed term tenancies that expire with no new agreement being signed will automatically become periodic tenancies, whereby tenants must give three week’s notice if they want to end the tenancy and landlords must give three month’s notice.

Fixed term tenants will also be allowed to apply to end a tenancy early, in the event of a substantial and unexpected rent increase.

Landlords who intend being abroad for more than three weeks will be required to appoint someone in New Zealand to manage their tenancies for the duration of their absence.

A draft Bill will be developed for Parliament to consider next year.

In addition to the legislative amendments, there will be changes to the Department of Building and Housing’s tenancy advice and dispute resolution services. The new measures include face-to-face services in more locations throughout New Zealand, an online application service and telephone mediation.

The service changes include:
·   Extended hours for phone advice: 8am to 5.30pm weekdays instead of 8.30am to 4.30pm
·   New Tenancy Tribunal application forms
·   Access to face-to-face services in 17 more locations throughout New Zealand
·   A new phone mediation service to resolve straightforward disputes
·   The introduction of online applications to the Tenancy Tribunal.

In total there are now 85 centres where landlords and tenants can sit down with a mediator, get advice or pick up resources. The additional community venues, which will now provide services by appointment, are located in Putaruru, Mangakino, Murupara, Te Kuiti, Kawerau, Opotiki, Turangi, Paraparaumu, Hornby, Rangiora, Amberley, Waimate, Hokitika, Fairlie, Twizel, Alexandra and Wanaka.

A phone mediation service, ‘Swift’, has been set up to resolve straightforward tenancy disputes within 24 hours. An example is an application for rent arrears where both the tenant and landlord agree that the rent is behind and they require mediation to reach an agreement about how the arrears will be paid.

Other reforms currently under way across the building and housing sector include: the review of the Building Code, the licensing of building, auditing and accrediting building consent authorities, changes to the Weathertight Homes Resolution Service, the introduction of a financial assistance pilot for the worst affected owners of leaky homes, product certification and investigating a home warranty insurance scheme.

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