Property Management

Protecting landlord's access to tenant credit checks

The New Zealand Property Investors Federation says it is vital that landlords are able to do credit checks on potential tenants.

Tuesday, March 23rd 2004

Currently the Privacy Commissioner is considering a proposal that would stop landlords being able to do credit checks on prospective tenants.

Under the proposed Code for Consultation, Credit Information Privacy Code the commissioner is saying that only credit providers will be able to access information on the creditworthiness of individuals from firms like Baycorp.

New Zealand Property Investors Federation president Craig Paddon says landlords would fall outside of the definition of credit providers.

Mr Paddon says federation members use tenancy agreements which have an appropriate clause regarding access to credit information.

Under this clause prospective tenants consent to allow landlords to check out their credit details. "This proposed code is unjustified when prospective tenants have given their express permission for such checks to be undertaken," Mr Paddon says.

He says this proposal has far reaching effects on the residential property industry. There are more than 320,000 rental properties in New Zealand and more than 250,000 landlords.

"When a landlord signs up a tenant they are entering into a long-term arrangement, but are only being paid in short-term rental amounts. This means that it is important landlords are able to check the financial viability of tenants."

"We have argued that the code needs to make clear that landlords can access credit reporters' databases when properly authorised by prospective tenants."
Heartland Bank - Online 1.99
Kainga Ora - First Home Buyer Special 2.25
HSBC Premier 2.25
Westpac Special 2.29
TSB Special 2.29
BNZ - Classic 2.29
ASB Bank 2.29
ANZ Special 2.29
Kiwibank Special 2.35
ICBC 2.45
SBS Bank Special 2.49
Heartland Bank - Online 2.35
HSBC Premier 2.35
ICBC 2.45
TSB Special 2.49
SBS Bank Special 2.59
BNZ - Classic 2.59
ASB Bank 2.59
China Construction Bank Special 2.65
Kiwibank Special 2.65
The Co-operative Bank - Owner Occ 2.69
AIA 2.69
HSBC Premier 2.89
SBS Bank Special 2.99
The Co-operative Bank - Owner Occ 2.99
AIA 2.99
Westpac Special 2.99
ICBC 2.99
ASB Bank 2.99
China Construction Bank Special 2.99
BNZ - Classic 2.99
TSB Special 3.19
Kiwibank Special 3.19
Heartland Bank - Online 2.50
Resimac 3.39
Kiwibank 3.40
Kiwibank - Offset 3.40
Kiwibank Special 3.40
Bluestone 3.49
Select Home Loans 3.49
ICBC 3.69
Heartland 3.95
The Co-operative Bank - Owner Occ 4.40
The Co-operative Bank - Standard 4.40

More Stories

ANZ predicts fewer OCR cuts

Thursday, January 14th 2021

ANZ predicts fewer OCR cuts

ANZ has revised its forecast for the official cash rate, predicting only one cut next year to 0.1%.

Mortgage advisers against bright-line test extension

Wednesday, December 09th 2020

Mortgage advisers against bright-line test extension

Mortgage advisers are strongly opposed to any extension of the bright-line test, as speculation mounts that the government will change the law.

Housing market to cool? Yeah Right

Monday, November 30th 2020

Housing market to cool? Yeah Right

While MPs, bureaucrats, and others are calling for the housing market to be cooled, Kiwis don't think anything will happen.

Evidence mounts for NZ property market rebound

Thursday, November 26th 2020

Evidence mounts for NZ property market rebound

There is growing evidence of a strong bounce-back in the residential property market, according to CoreLogic.