The following areas are key Federation focuses for the year ahead.
Following strong Federation lobbying the long promised Tenancy Tribunal database – detailing tribunal rulings – is expected to be available from late next month.
The implementation of the database delayed from July 2006 will enable landlords (and tenants) to search a Department for Building and Housing/Ministry of Justice website containing all Tenancy Tribunal decisions.
The database will be made up of current and future decisions and will not include past decisions or mediation decisions (because of their privacy considerations). The rationale advanced for the former was that there were issues to do with the consistency and format of names on historical decisions.
Going forward, landlords should ensure they get a tenant's full name and date of birth on the Tenancy Agreement. An ID photo too could prove invaluable as well.
It is intended that the database would be updated daily and the DBH expects some 20,000 orders to be lodged on the site each year.
Following the Federation’s successful lobbying to defeat the Residential Tenancies Amendment Bill (re: Boarding houses et al) in April 2006, the Government is expected from mid-2007 to introduce a fresh bill to amend the Residential Tenancies Act
The Federation is waiting to see details of the proposed changes however in broad terms the Federation is looking for major improvements in tenancy law. Some key areas of interest for landlords will be the ability to recover collection costs incurred in enforcing Tenancy Tribunal orders, redirection of benefits to landlords and making tenant breaches sub-letting or assigning a tenancy without consent, over-populating the premises or creating neighbour problems unlawful acts and clarification that tenants will pay all water charges – where metered.
A priority area for the Federation to address and defeat again (originally back in September 2006) will be the modified (“Maryan Street”) proposal that landlords protect tenants against personal liability for damage they were not responsible for and that a tenant’s liability to any damage caused carelessly to a property would be limited to four week’s rent.
The updating of the Unit Titles Act will also be of key interest to the Federation – expect mid year. The proposed new legislation will basically seek to provide clarity around the rights and obligations of unit owners, bodies corporate, developers, tenants and lessees.
In other policy areas the Federation expects to see progress on the Ministry of Social Development Review of the Accommodation Supplement. A report to Ministers is due in the first half of 2007
The report will focus on the effectiveness and role of the AS and identify any changes that are needed. The Federation has lobbied for the payment of the AS direct to landlords.
In calendar year 2005, more than $735 million was paid out in the accommodation supplement to beneficiaries and non-beneficiaries who rent, board, or own their own home – totalling some 256,000 people.
Whilst always a major threat, the Government’s willingness and opportunity to lessen the attractiveness of residential property investment remains high. The Federation will be closely monitoring a review led by the IRD into general and limited partnerships – and any proposed tax changes. Key for property investors is the discussion around the future of LAQCs.
Whilst Parliament is not scheduled to resume until mid-February, some politicians are clearly back in operation and housing issues are proving topical and popular.
Of concern to the Federation is the latest outpourings of the NZ First Party. In a news release (dated 24 January) housing spokesperson, Pita Parone, encapsulates the party’s (and others) stance on rental property and landlords with one simple sentence:
“Do we really need to jeopardise this by letting house prices skyrocket out of control, making landlords wealthy but renters unable to get ahead?”
Surprisingly, Paraone is also a property investor based in Auckland.
Although not a player in the current NZ Parliament, the Alliance Party (previously aligned with Jim Anderton) has this month also echoed similar anti-investor sentiment, including:
'Housing has now become about profits for investors, rather than about putting a roof over peoples heads. Our priorities are all wrong.'
“The Alliance would introduce capital gains taxes to dampen down speculation, and introduce rent controls and stronger tenancy protection to prevent exploitation of the poor. “
As the parliamentary year progresses and in the run up to next year’s general election such rhetoric will be unfortunately be more commonplace.
There is a medium to high risk that the current relatively free market business and commercial policy and conditions could potentially turn anti-landlord in direction.
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