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Human rights body slams tenant damage changes

Proposed amendments to tenancy law which would help landlords better address damage liability and meth contamination have come under fire from the Human Rights Commission.

Thursday, August 24th 2017, 12:00AM

by Miriam Bell

In a submission on the Residential Tenancies Amendment Bill (No.2), the Commission has expressed concerns about the human rights implications of the Bill – for tenants.

Building and Construction Minister Nick Smith introduced the Bill into Parliament in May, it passed its first reading in July and it is now at the Select Committee stage.

The Bill was prompted by growing outrage over some controversial Tenancy Tribunal rulings on tenant liability for accidental damage, following the Court of Appeal Osaki ruling, along with meth contamination concerns.

Smith, who acknowledged that the post-Osaki damage liability fallout was not fair to landlords, said the Bill was intended to ensure that tenancy laws better manage liability for careless damage, meth damage and the tenancy of unsuitable properties.

However, the Commission believes the Bill, as it stands, could put a higher duty of care burden on tenants, as compared to landlords.

Chief Commissioner David Rutherford said it also has the potential to drive up rental costs and subject some tenants, who are not at fault, to tenancy termination without their consent or compensation.

“The balance between meeting the human rights needs of renters, while also protecting the rights of landlords and their properties, needs to be found. This Bill has not yet found that balance.”

Rutherford said the Committee has to consider the impact of tenant liability for careless damage on affordability in the private rental market.

Further, the Commission wants the Bill to be amended to include the changes to the RTA proposed in Labour’s Healthy Homes Guarantee Bill and to enact a more reciprocal private rental framework, including reviewing the grounds of, and notice period for, termination.

These suggestions are unlikely to go down well with landlord advocates.

While the NZPIF has said it is pleased the Bill is taking some action to ensure tenants are held responsible for accidental damage to rental properties, it also does not believe the Bill goes far enough on that front.

Additionally, the NZPIF is supportive of the Bill’s drive to provide landlords with easier access to their rental properties to test for meth and has some concerns about the Healthy Homes Bill.

Read more:

RTA amendments over first hurdle 

Tenant damage law change 

Dark clouds on landlords’ horizons 

« Expect negative impact from regulation overloadRents rise in Wellington - & Christchurch »

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AIA - Back My Build ▼4.94 - - -
AIA - Go Home Loans ▼7.49 ▼5.79 ▼5.49 ▼5.59
ANZ ▼7.39 ▼6.39 ▼6.19 ▼6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - ▼5.79 ▼5.59 ▼5.59
ASB Bank ▼7.39 ▼5.79 ▼5.49 ▼5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance ▼7.90 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One ▼7.54 - - -
BNZ - Rapid Repay ▼7.54 - - -
BNZ - Std ▼7.44 5.99 5.69 5.69
BNZ - TotalMoney ▼7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ ▼6.95 ▼5.79 ▼5.59 5.69
Co-operative Bank - Standard ▼6.95 ▼6.29 ▼6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - ▼5.99 ▼5.89 -
First Credit Union Standard ▼7.99 ▼6.69 ▼6.39 -
Heartland Bank - Online ▼6.99 5.65 5.55 5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 ▼6.65 6.40 -
ICBC 7.49 ▼5.79 ▼5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank ▼7.25 6.89 6.59 6.49
Kiwibank - Offset ▼7.25 - - -
Kiwibank Special ▼7.25 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society ▼7.94 5.95 6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank ▼7.49 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo ▼4.94 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank ▼8.19 6.49 6.49 6.49
TSB Special ▼7.39 5.69 5.69 5.69
Unity 7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
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Westpac ▼7.39 ▼6.39 ▼6.09 ▼6.19
Westpac Choices Everyday ▼7.49 - - -
Westpac Offset ▼7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - ▼5.79 ▼5.49 ▼5.59
Median 7.49 5.99 5.79 5.69

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