RTA amendments over first hurdle

Wednesday 5 July 2017

Law changes on the tenant damage liability and meth contamination front are moving closer with the Residential Tenancies Amendment Bill (No 2) passing its first reading in Parliament.

The Bill is intended to ensure that tenancy laws better manage meth contamination, liability for careless damage and the tenancy of unsuitable properties.

Building and Construction Minister Nick Smith said the Bill recognises that meth contamination of properties has become a significant issue that needs clearer direction.

“We want homes to be safe but we also don’t want properties being vacated when the risks are low.”

If the Bill passes into law, landlords will have easier access to properties to test for meth while tenants will be able to terminate their tenancy if meth presents at unsafe levels.

It enables the contamination thresholds and competency requirements in the new meth testing and remediation standard, which was released last week, to be legally recognised and enforceable before the Tenancy Tribunal.

The Bill also addresses tenant liability for careless damage – which has become an issue in the wake of the controversial Court of Appeal Osaki decision last year.

It provides that tenants will be liable for the cost of their landlord’s insurance excess up to a maximum of four weeks’ rent for each incident of damage caused by carelessness.

A tenant will be fully liable where the damage is deliberate or a criminal act, while the landlord will be liable for fair wear and tear and damage beyond the control of the tenant, like a natural disaster.

Smith said it will ensure landlords are not left out of pocket for tenant damage to rental properties and that tenants have an incentive to take good care of rental properties, while encouraging cost effective insurance arrangements.

Additionally, the Bill strengthens the law for prosecuting landlords who tenant unsuitable properties to include those who rent out unlawfully converted garages, warehouses or industrial buildings as living spaces.

The RTA Bill (No 2), which builds on the tenancy law changes made last year, is now being considered by the Local Government and Environment Select Committee.

Read more:

Tenant damage law change 

New meth decontamination levels revealed 

Rental insulation requirements are now law 

Comments from our readers

On 13 July 2017 at 9:15 am Methuselah said:
This bill is a weak vandals which does not address the tenant damage issue at all well. Firstly many claims exceed a limited cover eg Meth claims and claims deemed to be "gradual damage" caused by tenants flooding service areas and leaving waterlogged. Getting your excess from the tenant in such cases doesn't deal with a major portion of loss. Also, if the landlord has to file more ltieclas for amounts above excess for assorted carpet or wall or window damages because the tenant is ONLY responsible for repairs h excess, then the insurance company will either increase premiums through the roof or refuse future cove, wither of which will ruin the landlord's ability to continue his investing business

Sign In / Register to add your comment

Property News

To have and to hold

New NZPIF president Sharon Cullwick is a passionate property investment advocate and this month she tells NZ Property Investor magazine how to be a successful investor.

House Prices

Demand cools in Auckland

Property prices may still be hitting record highs around New Zealand but new Trade Me Property data suggests that demand in Auckland is cooling.

Commercial

Getting to grips with leases

Leases are at the heart of commercial property investment yet many people don’t take the time to understand them and suffer as a result.

Mortgages

Investor mortgages creeping up

Increased pressures don’t seem to be putting investors off as new mortgage lending data reveals that investors’ share of the lending has gone up.

Site by PHP Developer