The New Zealand government recently passed the biggest changes in Tenancy legislation in 35 years, outlined in the Residential Tenancies Amendment Act 2020.
Here at Lochore’s Real Estate, we keep up to date with all things residential property and care about our clients’ investments, which is why our Auckland property management professionals and real estate salespeople have created this handy guide for everything you need to know about the changes, what you can expect, and what action you should take where necessary.
The recent changes were made in response to significant shifts in New Zealand’s housing market demographics. With homeownership in New Zealand now at its lowest point in the past six decades, the number of households renting long-term has ballooned to over a third of the country’s population. What’s more, the number of children raised in rented homes has leapt from 26% in 1986 to nearly 50% today.
These demographic changes have significantly altered the power balance between tenants and landlords, so the government proposed these changes to ensure that the rights of tenants in this environment are secured. Importantly, these changes to the original Residential Tenancies Act 1986 did not arise in response to evidence of widespread mistreatment or exploitation of tenants by landlords. Rather, they seem to be precautionary, shoring up perceived weaknesses of tenants in a changing NZ housing market.
Passed in late 2020, the Residential Tenancies Amendment Act 2020 rolls out a series of tenancy legislation changes over three phases, outlined below.
Phase three allows for more immediate termination of tenancy agreements in the event of family violence or the assault of a landlord.
Tenants won’t incur a financial penalty if terminating a tenancy without notice due to experiencing family violence. Additionally, landlords can terminate a tenancy agreement with only 14 days’ notice if they, their agent, their family, or the property owner have been assaulted by the tenant, and police have laid a charge against that tenant for said assault.
As a leading Auckland property management office, the Lochore’s team works hard to stay abreast of changes to tenancy law and can help you navigate any compliance issues that may arise, working to optimise the return on your investment whilst minimising the risks.
If you need expert, professional services to help you navigate these changes or take the stress of property management off your hands, don’t hesitate to contact our team today.