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Amendments to the Residential Leasing Law were approved last month.
Starting February 11, owners will not be able to terminate periodic leases without cause, and fixed leases will change to periodic at the end of the period unless otherwise agreed.
The reasons why a landlord may end a recurring tenancy will be clarified closer to February and will likely include provisions on “antisocial behavior.”
“I have told my landlords … since the changes take effect, they can no longer notify tenants,” said Kathryn Seque, president of the Otago Property Investors Association yesterday.
“If you want to notify any of your tenants for any particular reason, you must do so now.”
She was “educating” the association owners about the changes.
“There are a wide variety of reasons why a landlord gives notice to a tenant.
“We would say if you have a difficult and troublesome tenant right now, especially in relation to antisocial behavior, it might be a good idea to think about maybe renovating the property … and letting them know sooner … it will be much more difficult to do after enter the new laws. ”
Some owners were choosing to leave the market and sell, Seque said.
“I have a member … who owned a rental property for 32 years and sold it last week due to the RTA reform.”
Many people now looking for a rental have been tipped off because a landlord had decided to sell, he said.
“There seems to be a lot more going on, especially in Dunedin from what I’ve noticed.”
It was easy for owners to sell at record prices.
The Healthy Homes Act, which will require rents to meet a specific standard for heating, insulation and ventilation starting in July next year, was another incentive for landlords to leave the rental market, Ms Seque said.
“When homeowners have these substandard properties and they have to deal with these healthy home laws, then they just think ‘well the RTA has changed, the healthy home laws go into effect … now I have to complete. all these statements come on December 1 of this year. I’m throwing in the towel. “
The Salvation Army community ministries manager David McKenzie had noticed a recent increase in people who became homeless after losing their long-term leases.
“When it comes to the reasons their lease was terminated … that’s more hidden. They are not clearly told why.”
Mr. McKenzie had heard anecdotally that landlords were relocating tenants before the changes to the leasing law went into effect.
The Salvation Army is working with some 36 families seeking a permanent rental.
McKenzie said he was aware of two cases in recent days where people who had been rented for nine and 10 years were told to move out.
“These are people who have been good tenants for a long period of time.”
They were often people who were not the first priority on the waiting lists for social housing and had to try to secure a permanent rental in a Dunedin market that he described as very difficult.
“This has gotten worse in recent months.
“The two cases I’m thinking about in particular this week ended up in emergency housing and they will probably both be in transitional housing with us next weekend.”
The New Zealand Real Estate Investors Federation, to which the Otago Real Estate Investors Association is affiliated, has told its members to wait to see if National wins next month’s election before spending money to recondition its rents to the new heating standards.
The comments have been called “deeply disappointing” by the Labor Party and challenged by the Real Estate Institute and the New Zealand Green Building Council.
National Party leader Judith Collins has said her party, if elected, would break the new healthy home standards recently introduced by the Labor-led government.
– Additional information The New Zealand Herald
