Backlash to proposed changes to the Residential Tenancies Act is growing amongst rental sector organisations.
The Real Estate Institute of New Zealand (REINZ) and NZ Property Investors’ Federation (NZPIF) have both shown extreme concern around the suggested amendments around landlords’ eviction rights.
The proposed Act changes announced in November 2019 are “designed to provide a balance between the rights and responsibilities of both tenants and landlords”, according to Associate Housing Minister, Kris Faafoi.
The proposed changes will seek to:
Chief executive of REINZ, Bindi Norwell said if the proposed changes around the current 90-day eviction rule go ahead, it may be the final straw for landlords.
In February Norwell told Newshub that if the changes go through, “rental property owners will have limited abilities to remove tenants who are causing problems in their properties or causing trouble with neighbours.”
NZPIF also weighed in on the changes, Executive Officer Andrew King expressing concerns “that the proposed changes to the no-cause 90-day notice will mean owners effectively can’t control who lives in their property, and in some cases this could impact directly on neighbours.”
King shared Norwell’s finalstraw sentiment, saying “We believe this change will cause investors to leave the market, pushing up rental prices even further for tenants who are already struggling to pay the rent.”
Both REINZ and NZPIF — who collectively represent 20,000 real estate professionals and landlords — said they would be happy to support the proposed rent rises change, limiting them to once every 12 months and preventing landlords from rental bidding.
These changes have been drafted in a Bill to amend the Residential Tenancies Act 1986, which had its first reading before Parliament in February.
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