Phase One

This has already taken place. There has been an extension of Covid-19 regulations limiting rent increases to once every 12 months and transitional and emergency housing have been removed from the RTA.

Phase Two

Phase two is to be implemented on February 11, 2021. The majority of the

reforms of the 2020 Act now come into effect and they are listed here.

• Security of tenure The provision allowing landlords to terminate a tenancy with a 90-day no-cause notice has been removed. There has also been a change in the timeframes for different methods of tenant terminations – for example, 63 days for the landlord moving in and 90 days if the property is being sold. Tenants’ notice periods to landlords have also been extended from 21 days to 28 days.

• Changes for fixed-term tenancies Fixed-term tenancy agreements will automatically roll over to periodic tenancies unless both parties agree to extend, renew or end the fixed-term tenancy.

• Making minor changes If a tenant requests to make a minor change to the property the landlord cannot unreasonably deny this.

• Prohibitions on rental bidding When offering a property for rent the price must be stated. You cannot run an auction for a property which could cause potential tenants to drive up the price. Tenants, however, can offer a higher rent for a property but extreme care needs to be taken in that situation.

• Requests for fibre broadband A tenant can request to have fibre broadband installed and the landlord cannot deny this request as long as there is no cost.

• Privacy and access to justice A wholly or substantially successful party in a Tenancy Tribunal hearing can apply for an order for suppression of their private details. This means their name and any other identifying details will be removed from any Tenancy Tribunal decisions.

• Assignment of tenancies If the tenant requests to assign a tenancy to someone else, the landlord must consider this and must not unreasonably decline it.

• Landlord records Information about the tenancy and prospective tenants must be kept for at least 12 months after the tenancy has ended. In some cases this may be for as long as 20 years or more! Records detailing building work, electrical work, gas fitting and plumbing and any advertising for the tenancy must also be kept and be available should the MBIE Compliance and Investigation team request it. All information regarding the Healthy Homes compliance should also be readily available.

• Stronger enforcement measures The Act has significantly increased the number of unlawful acts and pecuniary penalties against landlords with fines as high as $100,000. The enforcement powers of the MBIE Compliance and Investigation team (the Regulator) have been strengthened.

This team has the ability to investigate landlords and can issue Improvement Notices and Enforceable Undertakings. It has the approval to perform 2,000 interventions from June 2020–July 2021.

The ability to meet this target has been supported by an election promise to double their number and fund another 70 inspectors.

• Changes to Tenancy Tribunal jurisdiction The Tenancy Tribunal jurisdiction and administrative powers have been broadened. MBIE now has the ability to take a landlord to the Tenancy Tribunal. Property investors with six or more houses could face higher infringement fees.

Phase Three

Phase three relates to reforms regarding family violence, and physical assault of a landlord. These provisions are expected to be implemented by August 11, 2021. However, they may take effect earlier. There is no doubt that RTA 2020 will make substantial changes to the way landlords run their businesses. Landlording can no longer be considered a backyard industry. More details on these changes can be found at www. tenancy.govt.nz.