RTA Amendment Act 2020

HAVE WE GOT OUR HEADS AROUND THE DATES?

There has been a notable increase in media coverage of how the new changes will only compound pressure on the lack of rental property across the country. REINZ made submissions to the Select Committee on behalf of members with concerns about some of the proposed changes in the RTA Amendment Bill i.e., removal of the no cause 90-day termination, unfortunately without success in this particular case.

Most of the changes came into effect on 11 February 2021. However, there are some rules that will not apply to tenancies that had already started prior to this date.

For all fixed-term tenancies granted before 11 February 2021, the current rules for ending tenancies apply. The new rules for terminating fixed-term tenancies will only apply to fixed term tenancies granted or renewed after 11 February 2021. A tenancy is granted when it is agreed, which is likely to be before the tenancy start date (look to when the tenancy agreement was signed).

For all periodic tenancies, a termination notice given before 11 February 2021 under the current rules is valid. Termination notices given after 11 February 2021 must use the new rules.

If there are proceedings in the Tribunal that commenced before 11 February 2021, the rules in the Amendment Act do not apply.

A no cause 90-day termination notice given before 11 February 2021 was valid as the new rules had not yet come into effect.

The Amendment Act provides that tenancy agreements cannot prohibit assignment of a tenancy (unless the tenant is in a social housing tenancy). This rule does not apply to existing tenancies granted before 11 February 2021 that prohibit assignment.

Notices for anti-social behaviour or rent arrears under the new rules in the Amendment Act were not applicable before 11 February 2021. landlord cannot withhold consent. The landlord must respond to the request in writing within 21 days. They can notify the tenant that they require more time to consider the request but must still respond in a reasonable time frame. The tenant can apply to the Tribunal if the landlord declines the request and they would like to challenge the landlord’s decision.

From 11 February 2021, if a tenant requests consent for the installation of fibre broadband with their landlord, the landlord must respond to the request within 21 days. The landlord must accept a request to install fibre unless an exemption applies.

The termination ground of a tenant physically assaulting a landlord, and the ability of tenants to terminate a tenancy because of family violence, have a different commencement date. Both of these provisions still require regulations to be made.

It will be vital for property managers to stop and review the date a tenancy was granted before issuing notices or responding to emails. This may also cause confusion for the tenant, with many tenants already under the impression that the Amendment Act changes are now in play along with the requirement for all Healthy Homes Standards to be in place.

Other key dates for Healthy Homes Standards:

1 July 2019 – All rental properties must be insulated, where reasonably practicable, in ceiling and underfloor. All new or renewed tenancies must include an Insulation Statement, along with a Statement of Intent to comply with Healthy Home Standards.

27 August 2019 – Landlords must provide insurance information in any new tenancy or renewed tenancy agreement including excess information and any variations on the excess.

1 December 2020 – Most new or renewed tenancy agreements need to also include a comprehensive Healthy Homes Compliance Statement. This statement outlines each standard that is required under the Healthy Homes Standards being heating, insulation, ventilation, moisture ingress and drainage, and draught stopping. Failure to provide this statement carried a fine of up to $500 with a larger fine of $750 from 11 February 2021. Landlords who commit an unlawful act for failing to meet their obligations in respect of cleanliness, maintenance, smoke alarms, Healthy Homes Standards, buildings or health and safety requirements will carry an increased fine of up to $7,200.

1 July 2021 – all private rentals must comply within 90 days of any new or renewed tenancy after 1 July 2021.

1 July 2023 – all Kāinga Ora (formerly housing New Zealand) houses and registered community housing providers must comply with the Healthy Homes Standards.

1 July 2024 – all rental homes must comply with the Healthy Homes Standards.

Jo Rae, Head of Property Management, REINZ