Property | Property Management
Beginner’s guide to property management
Understanding the Residential Tenancies Act RTA Changes On 11 February 2021, the second phase of the Residential Tenancies Amendment Act 2020 came into effect, reflecting the fact that more people are renting than ever before. The final changes, regarding ending a tenancy due to family violence or physical assault, will take effect by 11 August 2021 at the latest.
Some of the key changes include: 90-day notice Landlords and property managers can no longer give a no-cause 90-day notice to terminate a tenancy.
To end a tenancy based on anti-social behaviour, the tenant must have been issued three written notices for anti-social behaviour within a 90-day period and an application must be made to the Tenancy Tribunal with evidence of this behaviour. There are a number of other valid reasons for terminating a periodic tenancy after 11 February 2021, which include but are not limited to: the tenant has been at least five working days late with their rent payments on three separate occasions within a 90-day period; the property is going on the market or has been sold with vacant possession; or extensive alterations, refurbishments, repairs or redevelopment of the premises are to be carried out; or the landlord requires the premises as a principal place of residence for themselves or a family member. A tenant can still terminate a periodic tenancy by giving at least 28 days’ notice (up from the previous 21 days). Additionally, all requests to assign a tenancy (or pass on the lease to another tenant) must be considered, and the landlord cannot unreasonably decline. If the tenancy agreement was entered into prior to 11 February 2021 and prohibits assigning another tenant, this agreement will still stand.
guidelines for periodic tenancies; a tenant gives notice for any reason at least 28 days before the end of the tenancy; or both parties agree to extend, renew, or end the fixed term tenancy.
Minor changes to the property
For those new to property management, the Real Estate Institute of New Zealand (REINZ) last year launched a new Beginner’s Guide to Property Management.
Tenants now also have more freedom in making The guide provides new property managers with minor changes to the premises, as landlords the knowledge and credentials they need to get must not unreasonably withhold consent for any started and succeed in the profession. minor renovations or alterations. The course is designed and written by experts and it sets out simply, the many aspects of Minor changes could include; shelving, baby the role in an easy-to-use guide, which new or gates, picture hooks, curtains or window existing property managers can study in their coverings, securing furniture or appliances to own time using a quiz at the end of each section protect against earthquake risk or to make a to test their expanded knowledge. property child safe. If the landlord consents to the changes, they can impose reasonable conditions, for example moving the shelf slightly to avoid wiring behind the wall. Landlords must respond to requests in writing within 21 days. These minor changes must be remediated to substantially the same condition when a tenant leaves the premises at the end of a tenancy.
Other changes Other changes that came into effect on 11 February 2021 were fibre broadband installation, ending rental bidding, annual rental increases, privacy and access to justice, assignment of a tenancy, landlord records, enforcement of the RTA and changes in the Tenancy Tribunal’s jurisdiction and administrative powers. For a full summary of changes, check out the Ministry of Housing and Urban Development and Tenancy Services Summary of Changes Factsheet: www.tenancy.govt.nz/assets/ Uploads/files/residential-tenanciesamendment-act-2020-factsheet.pdf.
The next deadline for the Healthy Homes Standards is 1 July 2021 – for more information Fixed-term to Periodic Tenancies on these changes, visit: www.tenancy.govt. Fixed-term tenancy agreements now convert to nz/about-tenancy-services/news/deadlineperiodic tenancies unless a landlord gives notice extended-for-healthy-homes-standardsusing the reasons listed above or in the RTA compliance-statement. CT 34 | www.canterburytoday.co.nz
It can also be used by managers as a great induction course for new starters to a team. REINZ chief executive, Bindi Norwell, says property managers who take their role and learning seriously will find that the course will put them in good stead to add value to their customers. It will also arm them with the knowledge they need to ensure their landlords don’t end up being fined for failing to follow and adhere to relevant legislation. “It all comes down to good communication and that’s something we have stressed right throughout the five modules, which make up the course,” Bindi says. “Recently there have been a number of legislative amendments and reforms to tenancy law including the Healthy Homes Standards and the new Residential Tenancies Amendment Act 2020. “This has meant that landlords and property managers have had to continuously keep up with these changes, so to support the wider industry, we’ve put a lot of thought into ensuring these changes are covered in the course,” she continues. Around 35 percent of New Zealanders currently live in rental properties, but the property management profession has had no regulation for the past 12 years, meaning that almost
anybody has been able to become a property manager with no training or qualifications. However, as new rules and regulations are potentially going to be introduced at some point in the near future, the need for comprehensively training property managers to understand the current requirements and keep up with the recent changes has become apparent – as has the importance of promoting best practice.
“
We really want to assist people in the property management profession because we see that as a big part of our role, and we think it’s time for everybody to lift their standards before regulation comes into effect.
”
“We feel that a course like this will be well received, given that the roles and responsibility of property managers have expanded so much over the years, and we are confident that people working in the property management industry will see the REINZ name and feel assured that this is a comprehensive and highquality offering.
“It is also a perfect lead into the New Zealand Certificate in Residential Property Management Qualification (Level 4). “We really want to assist people in the property management profession because we see that as a big part of our role, and we think it’s time for everybody to lift their standards before regulation comes into effect. “Our aim is for this course to become an industry ‘ABC’, and it will be updated regularly to keep learners up-to-speed with future changes.” CT
