Plans for rental reforms announced

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification

Forums › Politics › Plans for rental reforms announced

gzt

18679 posts

Uber Geek
+1 received by user: 7809

Lifetime subscriber

#240213 27-Aug-2018 10:08

Housing Minister Phil Twyford unveils plan to overhaul tenancy laws:

NZHerald: The Government has announced a reform of tenancy laws today in an effort to "make life better for renters".

A discussion document released by Housing Minister Phil Twyford today proposes:

• ending cancellations of tenancies without cause while ensuring landlords can still get rid of rogue tenants;

• increasing the notice period a landlord must give tenants when ending a lease from 42 days to 90 days;

• limiting rent increases to once a year and scrapping bidding for rental properties

• provide better processes for landlords and tenants to agree on pets or minor alterations to homes;

The Government will seek feedback on these proposals.

The thing I'd like to see go is fixed term tennacy agreements. Imo fixed term agreements are keeping rental prices artificially high for some properties that would otherwise be vacant more often. Those particular properties should really be priced lower to retain tennants - instead of locking tennants in as a strategy to reduce vacancy turnover and keep the price artificially high. Looks like that is not addressed in the proposal at all.

MikeAqua

8024 posts

Uber Geek
+1 received by user: 3817

#2079682 27-Aug-2018 13:16

Housing supply needs to increase. Labour's new policies are interim tinkery and may increase rents.

Mike

kingdragonfly

11984 posts

Uber Geek
+1 received by user: 12867

Subscriber

#2079950 27-Aug-2018 20:15

I'm all for ending "rent bidding", so kudos for that.

My first criticism is the changing rent every year as opposed to 6 months.

This may cause uncertainty on the landlord, and cause a greater increase on rents when given the chance.

I also had a neighbor who bred large aggressive dogs, which regularly got out, and harassed people. More common living next to a yapping dog is annoying.

So I don't like loosening up pet laws.

From Stuff

https://www.stuff.co.nz/business/106587407/Limits-on-rent-increases-and-an-end-to-rental-bidding-as-Government-reviews-rental-rules

"The reforms would also make it much easier for tenants to own pets, with landlords possibly required to give a reason why a pet is not allowed.

This would still let landlords ban possibly disruptive or damaging pets, but would give tenants more even footing if they wanted to argue their case.

Two options are being considered to end so-called "rent bidding" - where prospective tenants offer to pay more rent in order to secure a property."

MikeAqua

8024 posts

Uber Geek
+1 received by user: 3817

#2080082 28-Aug-2018 09:26

The thing is the tenancy tribunal ruled that if a landlord agrees to a pet, damage caused by the pet is fair wear and tear. That's why landlords have clamped down on pets.

Seems unreasonable that landlords should be exposed to the risk of having animals in the property. Pet damage to houses and landlord-provided chattels can be substantial and expensive.

If the govt is going to change the law to make pets permissible by default, they should also make tenants liable for damage caused by their animals.

Mike

Aredwood

3885 posts

Uber Geek
+1 received by user: 1749

#2080288 28-Aug-2018 14:40

More landlords will just rent via Airbnb instead. Probably won't be long before it will be cheaper to rent via Airbnb instead of a standard tenancy agreement.

Since Airbnb rentals are lower risk for landlords, they will be able to charge lower rent as a result. Except in Auckland due to the extra tax from the council.

MikeAqua

8024 posts

Uber Geek
+1 received by user: 3817

#2080345 28-Aug-2018 16:29

Aredwood:

Since Airbnb rentals are lower risk for landlords, they will be able to charge lower rent as a result.

That's an important point ... smart landlords price in risk.

In an under-supplied market if you increase the risk, you increase rental prices.

Mike

MikeAqua

8024 posts

Uber Geek
+1 received by user: 3817

#2080347 28-Aug-2018 16:32

Aredwood: More landlords will just rent via Airbnb instead.

I'm considering this for our rental property. There are now people who have full time jobs holding keys for and cleaning AirBnB properties. This makes it low maintenance.

Mike

HP

Shop now for HP laptops and other devices (affiliate link).

Aredwood

3885 posts

Uber Geek
+1 received by user: 1749

#2080520 29-Aug-2018 01:11

MikeAqua:
Housing supply needs to increase. Labour's new policies are interim tinkery and may increase rents.

This is actually the most important point. More housing is needed to fix the rental market. If there was plenty of new rental properties becoming available. Most renting problems would just disappear. As landlords would only be able to raise rents by providing better product and / or service.

But apart from Kiwibuild, nothing is being done to provide more housing. Even though all that is needed is some law changes. Mainly scrapping the resource management act. And scrapping silly council development restrictions.

NZ used to have pro development laws. If you look back to the 1950s- 1980s. Even during the previous building peak during the 1970s. Around 90% or so of new houses were still built by the private sector.

The laws at the time, were probably implemented by then Labour governments. Why can't the current Labour government implement the same laws?

SJB

2945 posts

Uber Geek
+1 received by user: 2287
Inactive user

#2080655 29-Aug-2018 09:49

I thought AirBnb rates were way higher than renting.

It would also only make sense if your property was in the right area. Wouldn't work in Timaru except if you looked over the bay.

GV27

5977 posts

Uber Geek
+1 received by user: 4212

#2080843 29-Aug-2018 15:15

Aredwood:

NZ used to have pro development laws. If you look back to the 1950s- 1980s. Even during the previous building peak during the 1970s. Around 90% or so of new houses were still built by the private sector.

The laws at the time, were probably implemented by then Labour governments. Why can't the current Labour government implement the same laws?

Land. Major RMA reform will require awkward conversations with Iwi and the cost of services will probably mean similar chats with Councils.

I'm not sensing too much urgency around that with Labour.