Protecting landlord's access to tenant credit checks
Tuesday 23 March 2004
The New Zealand Property Investors Federation says it is vital that landlords are able to do credit checks on potential tenants.
By The LandlordCurrently 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."
Commenting is closed
Covid-19 has not diminished the price expectations of property sellers with new data revealing that average asking prices hit record highs in seven regions in May.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.