Tenants Gain Ground as Landlords Face Legal Challenges in NZ

New Zealand’s rental market is shifting, providing tenants with increased leverage amid a backdrop of easing rents and a rise in available properties. Recent rulings from the Tenancy Tribunal have highlighted ongoing legal violations by landlords, particularly regarding tenant rights and expectations upon moving out.

As tenants find themselves in a more advantageous position, it remains essential for landlords to adhere to established regulations. According to a report by Susan Edmunds from RNZ, landlords must provide 48 hours’ notice for property inspections and 24 hours for repair work. Failure to comply can result in penalties of up to $1,500. Tenancy Services emphasizes the importance of communication, advising landlords, “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.”

A troubling case recently came to light involving a landlord who confronted tenants in their garden without prior notice, angrily addressing parking issues. The Tribunal ruled that this behavior breached the tenants’ right to peace and privacy, regardless of whether the landlord physically entered the property.

Tenants also have a say when their homes go on the market. Open homes cannot take place without tenant consent, ensuring their comfort during such processes. Furthermore, landlords are prohibited from demanding professional cleaning services upon a tenant’s departure. They are only required to leave the property “reasonably clean and tidy.”

Upcoming changes to pet regulations may complicate existing rules. Sarina Gibbon from Tenancy Advisory has noted that new provisions could allow landlords to permit pets, provided that carpets are professionally cleaned. However, she emphasizes that this guideline is not a blanket rule. Additionally, pet bonds remain illegal until December 1, with Gibbon reporting that landlords have been unlawfully collecting these fees prior to the official change.

Another contentious issue arises when landlords attempt to charge outgoing tenants for the difference in rent when a new tenant signs a lease at a lower rate. Gibbon explains that such practices are typically unlawful unless rare exceptions apply. Recently, the Tribunal dismissed a landlord’s claim seeking a $10 weekly shortfall, as the landlord could not justify the reduced rent or demonstrate that they had taken reasonable steps to secure the best market value.

In a particularly severe case, a landlord in Beach Haven unlawfully entered a tenant’s home, disposed of personal belongings, and seized a computer valued at $4,000. The Tribunal awarded the tenant $4,500 in damages, citing the landlord’s prior derogatory communications.

For landlords, prompt action is vital when dealing with overdue rent. Gibbon cautions that neglecting to issue notices or establish payment plans can hinder their ability to recover outstanding amounts: “We’re not going to award you all the rent that’s owed to you.” Additionally, landlords cannot withhold utility bills, such as those from Auckland Watercare, and demand large back-payments at the end of a tenancy; these must be communicated within a reasonable timeframe.

As a legal requirement, anyone overseas for more than 21 days must appoint a representative to manage their property. Failing to do so constitutes a breach of tenancy rules. Disputes are also arising regarding tenants installing cabins, which may be classified as vehicles and fall outside the Residential Tenancies Act or may require landlord consent. Gibbon advises both tenants and landlords to seek legal counsel for clarity.

Retaliatory actions from landlords remain a serious violation of tenant rights. Issuing notices or increasing rent in response to tenant complaints is prohibited. In a notable case, tenants reported receiving a notice just one day after filing a dispute. The Tribunal observed the suspicious timing, 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 landscape continues to evolve, both tenants and landlords must navigate the complexities of their rights and obligations to foster a fair and respectful rental environment.