Now that the Residential Tenancies Amendment Act 2020 has been passed and is set to be fully implemented by 11 February 2021, we speak to seasoned property manager Katrina O’Connor from Barfoot & Thompson Manurewa about how the renting industry is responding to and adapting to the new law. 

Q. The RTAA 2020 is said to have dramatically increased the risk of landlording in New Zealand. What are you seeing on the ground? 

We are seeing a larger than usual number of properties where owners/their family are either moving back into them or they are being listed for sale.

Whilst it is difficult to be clear on whether this is due to returning family from overseas (the COVID effect), the Healthy Homes standards compliance
date looming or the reform of the Residential Tenancies act, anecdotally I am hearing that the reforms are the final nail in the coffin for some landlords
who, although good landlords, are feeling inhibited by the changes.

 

Q. What are you doing right now with the tenancies you are looking after to prepare for and meet the challenges of the new law?

A few things:

  • Historically we have encouraged 12 month fixed term tenancies as a starting point for owner and tenants to give both parties some security over the
    coming year. We are now encouraging owners to weigh up the “security” offered with a fixed term with the “risks” that come with the tenants’ rights
    to the assignment of the tenancies and are now leaning more towards periodic tenancies.
  • All properties have now had a rent review and rent increase
  • Recidivist debtors who fell behind, caught up and limped along...