Last week the Residential Tenancies Amendment Act 2020 was passed. It contains some significant changes. Most of the changes come in to effect in Feb 2021, with one change, being the limit on rent increases to every 12 months, coming in immediately. (Rent increase notices that have already been issued remain valid, although there are no rent increases scheduled before 26 September due to the COVID-19 temporary rules.)
There has been a lot in the media about these changes but coverage hasn’t been nearly detailed enough, or informed enough, to give a full appreciation of the changes. I really encourage you to have a read of this summary from the Ministry of Housing and Urban Development and even better, to read the more detailed Reform of the Residential Tenancies Act Implementation – Frequently Asked Questions. This document gives you a feel for the rights and responsibilities of landlords in various scenarios. This is the level of detail we need to deal with when managing your property.
The letting process will continue to be a huge focus and one of the most important parts of our process. We will be seeking more input than usual from owners during the next busy period as there is now an increased risk vs reward element to letting decisions that can only be made with an understanding of the owner’s investing strategy and risk appetite. Our default position has always been, and is even more so now, to retain good tenants for as long as possible. Last year we had almost 70% of our tenants re-sign for another term with us, this year we are hoping for an even higher rate.
Please be in touch with us if you have any questions about the Act as it relates to your property, meanwhile have a read of the linked documents above.