Landlords evict tenants they deem “annoying” before new rules banning evictions for no reason come into force next month.
Christchurch Property Investor Association President Shirley Berryman said several of its members had said they were evicting their “most annoying tenants” before the new legislation, which becomes law on Feb. 11.
Others told her they would leave the market as they feared the changes would make it very difficult to own.
Tenants Protection Association (TPA) CEO Penny Arthur said there had been a 60% increase in tenants seeking uninterrupted assistance over the past three months compared to the same period last year.
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Under the new rules, a landlord can only increase the rent once every 12 months, and the practice of renting offers is prohibited, with landlords or property managers inviting prospective tenants to offer more to secure a competitive spot.
The law will also abolish the practice of abrupt terminations, where landlords can evict their tenants without giving a reason if they give 90 days notice.
The lease can be terminated if the landlord wants to sell or needs the property for himself or a family member.
If a tenant pays rent late or has committed antisocial acts in three different cases, the landlord can apply to the Tenancy Tribunal to terminate the lease.
The current rule that allows a landlord to apply to the Tenancy Tribunal for eviction after the tenant has not paid rent for 21 days remains.
Auckland tenant Bruce Gordon, who runs Facebook Tenancy Support NZ, also said there has been a significant increase in the number of tenants who have been issued evictions for no reason in the past three months.
Despite the short-term pain, the new rules will increase stability for tenants and the rental market in the long run, he said.
“Laws always tend to favor landlords and protect their financial interests, unfortunately to the detriment of tenants,” he said.
“Landlords have been bought, so I congratulate the government on finally implementing policies and laws that protect tenants.”
Beriman said some of the changes were fair, but the owners were nervous about ending the non-causal terminations.
Beriman, who owns 10 to 20 rental properties on South Island, said she never had to use the unjustified termination in her 25 years as owner.
However, it was reassuring to have the choice, he said.
“It will definitely make us very careful in the process of selecting tenants. It would be easier to rent a property for a longer period of time while choosing a tenant instead of ending up with an annoying one. “
Arthur welcomed the changes, which he said would allow tenants to move into homes.
It was “incredibly stressful” for families to know that they could be fired for no reason at any time, or face wage increases every six months.
Existing rules protecting landlords from anti-social tenants or those who do not pay rent have remained in place, he said.
He said the term “annoying” often included tenants seeking repair and maintenance.
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“Instead of receiving maintenance, they receive a 90-day notice of termination of their lease.”
He did not worry about the owners leaving the market or leaving their properties empty.
“Rents have been rising steadily for years,” he said.
“The biggest concern is ghost houses – maybe in this case the money could be better placed in shares and let someone else have a roof over their heads.”
Pru Morrall, CEO of The Good Girls Property Management, said the market was “incredibly intense” and he did not know any landlords who would prefer to vacate their property under the new rules.
Extrusions without a cause were rare, he said. “If you do due diligence, you have no tenants from hell.”
About 1.5 million tenants rent about 600,000 properties in New Zealand.
When the Housing Amendment Act was passed last August, the Real Estate Institute said a survey found that 46% of landlords and investors were likely or unlikely to sell their rental property if the eviction ban went unreasonable. .
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