Tenancy Law Changes

Landlords and tenants need to understand the recent changes to tenancy law and how this will affect them.

All landlords including boarding house landlords, must comply with various legal obligations as governed by the Residential Tenancies Amendment Bill.

The changes are taking effect at three key dates :

• Phase 1:  12 August 2020
• Phase 2: 11 February 2021
• Phase 3: by 11 August 2021

Let’s look at Phase 1 for now . . . . 

Transitional and emergency housing will be exempt from the Act where the housing is either funded (wholly or partly) by a government department or provided under the Special Needs Grants Programme.

Rent can only be increased once every 12 months which is a change from once every six months.

The Covid-19 legislation that put a freeze on rent increases is still in place until 25 September 2020, which means landlords cannot increase rent until after that date .

Any rent increase notices given to tenants from 12 August must comply with the new 12-month rule. If a notice was given before the 12 August 2020 , it is still within the six month rule. 

How this will work in different scenarios : 

• before the law changed on 12 August 2020 , the rent can increase with 60 day’s written notice on or after 26 September if the tenancy started more than 180 days (six months) before the rent increase will take effect and it has been more than 180 days (six months) since the last rent increase 
• After the law changed on 12 August 2020 , the rent can increase with 60 day’s written notice on or after 26 September 2020 if the tenancy started more than 12 months before the rent increase will take effect and it has been more than 12 months since the last increase .

Important Covid-19 information on rent increases; rents were frozen 26 March initially for six months until 25 September 2020 . If a rent increase was negotiated or served prior to 26 March 2020, but didn’t come into effect until after that date, then that increase is of no effect  (there is no increase). Landlords can give notice of intention to increase the rent but this cannot take effect until after 25 September (at the earliest – the legislation may be extended past this date).

Landlords and tenants can agree to lower the rent temporarily. This could be for a specific time period or until a specific event occurs. Once that time is up, the rent returns to the original amount. 

In all events, it is advisable for landlords and tenants to talk to each other, work together and take care of each other wherever possible. Try to come to an arrangement that suits everyone .

We shall address Phases 2 and 3 in future articles.

The Tenancy Services have put together a helpful “Fact Sheet“ covering the changes available on their website  www.tenancy.govt.nz or you can get a free copy from our office –  Wairarapa CAB. 

  Reminder:  We have a Justice of the Peace (JP) in attendance for legal document work, but please call us first for availability.