Property Management

A step too far

The Green Party’s proposed warrant of fitness for rental properties is likely to hit renters with an unnecessary cost of about $90,000,000 a year, the New Zealand Property Investors Federation (NZPIF) says.

Monday, August 07th 2023

A rental property warrant of fitness (WOF) was an idea first raised 25 years ago and has been rejected by all Governments since.

NZPIF president Sue Harrison says at a time when there is a cost-of-living crisis, mortgage interest cost increases and higher taxes for rental properties, plus the extra cost of the proposed WOF certification every four years, it is hard for rental property owners to cover all these costs without increasing rents.

“It is tenants who ultimately pay. Improvements need to be genuinely beneficial and cost effective.”

NZPIF vice president Peter Lewis points out that tenants are unlikely to want inspectors to come and check their homes yet another time.

“They already don’t especially like the existing inspections of their homes required by insurance companies. While most insurers insist on three monthly inspections, the NZPIF has obtained agreement for inspections at four monthly intervals for members whose properties are insured with Initio Insurance. Both tenants and rental property owners appreciate having fewer inspections,” Lewis says.

He says the need for a rental property warrant of fitness simply isn’t there. “It would duplicate the laws we already have to cover the quality of rental properties, plus the measures in place to ensure there is compliance.”

Rental property owners make legal declarations that their rentals comply with all aspects of the Healthy Homes regulations and face large fines if these declarations are false. Tenants will know if their homes have problems. They are encouraged to raise these issues and take them to the Tenancy Tribunal. They can receive as they can receive exemplary damages of many thousands of dollars from their non-compliant landlords if their complaints are valid. There have been many examples of this recently, Lewis says.

Tenants are also protected from rogue rental property owners, who end tenancies if the tenant/s raise legitimate issues about their rental homes. Known as retaliatory action and if proven, tenants have been awarded sums of up to $4,000 by the Tenancy Tribunal if the property owner behaves this way.

On top of this, the Government has established the Tenancy Compliance Division which can undertake its own inspections of rental properties and hold poorly behaving rental property owners to account, even without a tenant’s involvement, he says.  

“Consequently there are already enough laws to improve the quality of rental property in New Zealand and enough safeguards and punishments to ensure that the standards are met.”

Lewis says the country needs more private rental properties, and there are too too many laws that stop this. “Tenants and rental property providers do not need more of these well-intentioned but misguided measures.”

Comments

No comments yet

SBS FirstHome Combo 5.89
Unity First Home Buyer special 6.45
Co-operative Bank - First Home Special 6.59
Heartland Bank - Online 6.69
Co-operative Bank - Owner Occ 6.79
BNZ - Classic 6.85
ANZ Special 6.85
ASB Bank 6.85
Unity 6.85
TSB Special 6.85
Westpac Special 6.85
Heartland Bank - Online 6.35
Westpac Special 6.49
SBS Bank Special 6.49
ANZ Special 6.49
ASB Bank 6.49
Unity 6.49
TSB Special 6.49
BNZ - Classic 6.49
Co-operative Bank - Owner Occ 6.49
AIA - Go Home Loans 6.49
Kiwibank Special 6.49
AIA - Go Home Loans 5.99
ASB Bank 5.99
Westpac Special 5.99
SBS Bank Special 6.19
Co-operative Bank - Owner Occ 6.35
ICBC 6.39
BNZ - Classic 6.39
TSB Special 6.39
Kiwibank Special 6.39
China Construction Bank 6.40
Westpac 6.59
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Standard 8.40
Co-operative Bank - Owner Occ 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Massive liberalisation of planning rules to end housing woes

Thursday, July 04th 2024

Massive liberalisation of planning rules to end housing woes

Housing minister Chris Bishop has revealed plans to “flood the market” with enough land to end the country’s housing crisis.

Predictions cut for rising house prices

Thursday, June 27th 2024

Predictions cut for rising house prices

Two of the country’s major banks have slashed their house price growth forecasts for the rest of the year.

Alternative to first home grant

Sunday, June 23rd 2024

Alternative to first home grant

Auckland-based entrepreneur Derek Handley has set up a privately funded financial services group offering an alternative first home loan scheme.

Growing number of property investment dollars moving across the ditch

Thursday, June 20th 2024

Growing number of property investment dollars moving across the ditch

More needs to be done to offset the loss of millions of dollars in property and business investments to Australia caused by a growing exodus of wealthy Kiwis, says an industry expert.