Constant and complex changes to residential tenancies legislation in New Zealand mean there are now more and more reasons to use a Property Manager.
We often hear from landlords who have found it too difficult to keep up with and understand legislative changes. With our competent team of Property Managers, consultants and the backing of the Real Estate Institute of New Zealand (REINZ), we have all the information available to ensure we can help our clients be prepared ahead of changes coming into force.
On the evening of 5 August, the government’s controversial Residential Tenancies Amendment Act (RTAA) 2020 was passed into law, ignoring the many submissions from Property Managers, property investors and REINZ.
Property professionals are joining with landlords in warning that while the Act may achieve some positive things for tenants, the rental law changes will have some unexpected outcomes.
While the majority of the Act will come into effect in February 2021, one significant change has already taken place. As of 12 August 2020, rent increases are limited to once every 12 months (rather than once every 180 days) to help tenants who are struggling financially as a result of COVID-19. Rent increases can take effect from 26 September 2020 (at the end of the rent increase freeze which had been introduced as part of the COVID-19 response) and any rent increase notices issued from 12 August must comply with the 12 month rule.
The other reforms include the removal of the “no cause” 90-day termination notices, replacing them with a comprehensive list of specified, justified reasons a landlord can use to end a tenancy.