Building and Construction Minister Shane Jones is proposing changes to tenancy laws which will provide protection to potentially vulnerable tenants, such as those living in boarding houses and in some rented retirement accommodation.

Mr Jones said the Bill would seek to clarify and provide balance to landlord and tenant rights.

“I am well aware of landlords’ concerns over property, liability and revenue and I hope this bill strikes the sort of balance which provides them protection as well as alleviates their worries,” Mr Jones said.

Mr Jones said the proposed changes in the Residential Tenancies Amendment Bill will also strengthen tenants’ ability to ensure that landlords meet their maintenance responsibilities.

Boarding houses and some rented retirement accommodation providing services such as meals or cleaning are not covered by the Residential Tenancies Act 1986, but Mr Jones said these tenants need the same protections as any others.

Boarding houses with six or more tenants will be covered, and the current coverage of some rented retirement accommodation where services comprise up to 20 percent of the rent will be extended to accommodation where those services exceed that threshold.

“It balances the needs of tenants for a decent home, the needs of landlords to effectively manage their rental properties, and the needs of a changing society.

It strengthens the rights of landlords and tenants and improves the means for quickly sorting out any problems that arise.”

“The changes it provides seek to improve relationships between landlords and tenants, because good relationships mean stable tenancies – and stable tenancies are in their mutual best interests.”

Mr Jones said the Bill followed a comprehensive review of current tenancy law and reflects changes in the residential rental market in the past 21 years.

The Bill will be referred to Parliament’s Social Services Select Committee for consideration, at which time the public will be invited to make submissions.

Mr Jones says the Select Committee process provides the public with an opportunity to make suggestions, raise any concerns and, generally have a say in the shape of the proposed new tenancy laws.

The Minister said the existing Act has served New Zealand’s residential rental market well. “However, New Zealand has changed significantly since 1986 – from the technology we use, to the cars we drive, the way we live and our view of our place in the world,” he said.

“Tenancy demographics have also changed. More people, particularly older people and families with children, are renting, and they’re often renting for longer. The private residential rental market is growing, as more people see it as an investment opportunity, particularly ‘ma and pa’ landlords, and there is a wider range of rental accommodation on offer, particularly in terms of apartments.

“In this changed tenancy market balance and certainty are essential. We need to ensure the rights and obligations of landlords balance those of tenants. Their rights and obligations may vary, but they need equal ability within the law to address any issues arising from those rights and obligations.

In summary, the Bill:

·         extends the Residential Tenancy Act’s coverage to boarding houses and to some rented accommodation where services such as meals or cleaning are provided

·         increases the monetary jurisdiction of the Tenancy Tribunal and penalties for breaches of the Act

·         increases the enforceability of Tenancy Tribunal orders by, for example, enabling a party to recover private debt collection costs

·         limits tenant liability for damage to their rental premises to four weeks’ rent if the Tenancy Tribunal is satisfied that the tenant neither caused the damage intentionally or recklessly, nor intentionally or recklessly encouraged or permitted  another person to damage the premises

·         retains incentives for tenants to look after the premises

·         clarifies responsibility for outgoings such as rates, insurance and water use

·         allows for tenant breaches, such as sub-letting without consent, over-populating the premises or becoming a problem neighbour, to be subject to exemplary damages, as an alternative to eviction

·         clarifies the status of body corporate rules, with remedies for tenants if body corporate rules change during a tenancy

·         prohibits tenants being charged ‘letting fees’.

Mr Jones said it is essential to get the balance between landlord and tenant rights and obligations correct, “because the bigger the rental market becomes, the bigger the social and economic costs of getting its regulation wrong.

“Equally, the benefits of getting it right are bigger – and I am confident the reforms contained in this Bill strike that balance.”