Tenants Gain Power as Landlords Face Legal Challenges in NZ

New Zealand’s rental market is shifting, providing tenants with increased leverage amid a cooling economy. Recent rulings from the Tenancy Tribunal have highlighted ongoing violations by landlords regarding tenant rights. As rental prices ease and the availability of properties rises, prospective renters find themselves in a more advantageous position. Nevertheless, the Tribunal has documented numerous infractions concerning entry rights, quiet enjoyment, and expectations at the end of tenancies.

Landlords are required to provide at least 48 hours’ notice for property inspections and 24 hours for repairs, with penalties reaching up to $1,500 for non-compliance, according to a report by Susan Edmunds from RNZ. Tenancy Services emphasizes the importance of communication, stating, “A heads-up of when you are coming and what you’re coming for is a good way to help build a positive working relationship with your tenants.”

One recent case illustrated these issues when a landlord confronted tenants in their garden without prior notice, angrily discussing parking. The Tribunal ruled that this breach of peace and privacy violated the tenants’ rights, regardless of whether the landlord physically entered the garden.

Tenants also maintain significant rights when their homes are listed for sale. Open homes cannot proceed without tenant consent, as noted in the RNZ report. Furthermore, landlords cannot demand professional cleaning—such as carpet cleaning—upon tenant departure. The expectation is that tenants leave homes “reasonably clean and tidy.”

Yet, changes in legislation are on the horizon. Sarina Gibbon from Tenancy Advisory remarked on forthcoming pet regulations, suggesting that landlords might allow pets if carpets are professionally cleaned. However, she clarified that this is an example rather than a definitive requirement. Currently, collecting pet bonds remains illegal until December 1. Gibbon stated, “I’m hearing every week landlords are collecting pet bonds… when they are actually not legally allowed to until December 1.” Landlords can grant permission for pets without a bond on November 30, but must adhere to the new rule following December 1.

Some landlords are attempting to charge outgoing tenants for the difference when properties are re-let at lower rental prices. This practice is typically unlawful, according to Gibbon, who explained, “Even though there are some rare exceptions… those are really quite unusual.” A recent Tribunal ruling dismissed a landlord’s claim for a $10 weekly shortfall, citing their failure to justify the lower rent.

In a particularly severe breach, a landlord from Beach Haven entered a tenant’s home, disposed of belongings, and seized a computer valued at $4,000. The Tribunal found that the landlord had sent “derogatory and racially suggestive messages” and awarded $4,500 in damages to the affected tenants.

When rent payments fall behind, landlords are advised to act promptly. Gibbon warned that failing to issue notices or arrange payment plans could inhibit landlords from recovering arrears: “We’re not going to award you all the rent that’s owed to you.” Additionally, landlords must not accumulate bills, such as those from Auckland Watercare, and then demand large back-payments at the end of a tenancy; these charges should be passed on in a reasonable timeframe.

For property owners residing overseas for over 21 days, appointing someone to manage their property is a legal requirement. Not doing so could lead to further breaches. Gibbon noted emerging disputes regarding tenants installing cabins, as some are classified as vehicles and thus fall outside the Residential Tenancies Act, while others require landlord consent.

Retaliation by landlords against tenants for exercising their rights remains a serious violation of the law. In one notable case, tenants received a notice just one day after raising concerns in a dispute. The Tribunal deemed the timing suspicious, stating, “Where there is a short period of time between the tenant raising an issue about the tenancy (or filing a claim) and the landlord serving a notice, this may lead to a strong inference that the landlord was at least partly motivated by the tenant exercising their rights.”

As New Zealand’s rental market continues to evolve, it is clear that awareness of tenants’ rights is crucial for both parties. The recent rulings serve as reminders that landlords must adhere to established laws, fostering a fairer rental environment for all involved.