New laws for careless damage and unlawful tenancies

Posted by Auckland Property Management Ltd on July 25, 2019 | News, Property Management, Tenants

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New legislation for changes to the Residential Tenancies Act 1986 passed its final reading in parliament on 24 July 2019.

New tenancy legislation was passed on 24 July 2019 which will affect landlords and tenants in a number of ways. Landlords and tenants will both benefit from a Bill that clears up liability for careless damage to a rental property. The bill passed its final reading in Parliament two weeks ago..

“This Bill makes practical changes to the Residential Tenancies Act 1986 to help ensure our tenancy laws better reflect responsibility for careless damage of rental properties,” Associate Minister of Housing Kris Faafoi said. “These changes will provide greater certainty to landlords, minimise cost and risk, and ensure tenants have the right information when deciding if they will rent a property,” said Kris Faafoi.

Landlords will need to provide insurance information in any new tenancy agreement, including whether the property is insured and if so, what the excess amount is. The statement in the tenancy agreement must also inform the tenant that a copy of the landlord’s insurance policy is available on request.

The Bill also deals with unlawful residential properties, such as illegally converted garages or sleep-outs, by ensuring the rights and responsibilities under the Residential Tenancies Act are applied. The law for prosecuting landlords who tenant unsuitable properties is also strengthened under this Bill.

“We are improving our tenancy laws so that tenants and landlords are protected and can have clear expectations before going into a tenancy… through this Bill, we are committed to making sure that tenants are living in safe homes while also making sure properties are not being vacated when the risk is low.” Kris Faafoi said.

These changes are scheduled to take effect on 27 August 2019. We will be working with you to ensure deadlines are met.

Read the full media release on the Parliament website: https://www.beehive.govt.nz/release/new-laws-careless-tenant-damage-unlawful-tenancies-and-contamination