"These changes benefit both rental property owners and tenants alike"
The New Zealand Property Investors Federation (NZPIF) has voiced support for the proposed amendments to the Residential Tenancies Act 1986 (RTA), calling them potentially beneficial steps toward addressing New Zealand's housing crisis and fostering fairness in the rental market.
According to a statement from the organisation, these changes will offer property owners more flexibility while ensuring tenants' rights are protected, thereby promoting a more stable rental market.
“The government's commitment to addressing the housing crisis is appreciated,” the statement said. “[We] look forward to continuing to work with them throughout the legislative process, to ensure these changes benefit both rental property owners and tenants alike.”
NZPIF identifies crucial parts of RTA amendments
In the statement, NZPIF president Sue Harrison (pictured above) also shed light on the financial pressures facing investors due to the current state of the housing market.
“Rent increases are failing to keep pace with inflation and escalating expenses have put investors under financial strain,” she said.
Harrison was particularly optimistic about the restoration of the 90-day 'no stated reason' termination clause. She said the move will give property owners the confidence to re-enter the rental market with more security over managing their properties,
She also mentioned the benefits of reintroducing fixed-term tenancies in areas with high tourist and student populations, stating that it could provide relief to both tenants and investors in these regions.
NZPIF executive member Tim Horsbrugh said the proposed reinstatement of the 90-day termination clause will be especially crucial to restoring balance for both investors and tenants.
The clause was removed in 2020 to increase security for tenants. However, the move also discouraged property owners from participating in the rental market, which adversely affected tenant outcomes.
“The reinstatement of the 90-day termination clause will enable rental property owners to consider a broader range of tenants, promoting inclusivity and making renting more accessible,” said Horsbrugh.
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