Helpful Housing Tips and Updates for Landlords and Tenants in Napier

Napier HANDY HINTS August 2020 Written by Sharon Cullwick (NZPIF Executive Officer)

Education Programme There is available places this month Free to members $300 for non members On line Self Managing Landlords Course Details can be found on NZPIF.org.nz Enrol and then you will be sent a date you can start the course.

New Bond Forms Tenancy Services have updated their bond forms. Ensure you are using the latest version for faster processing. Tenant email is no longer mandatory. Additional forms can now be attached to the one Bond Lodgement form.

Asset Depreciation Before 16thMarch 2020 - you could claim an immediate tax deduction for assets costing less than $500, instead of claiming depreciation over the following years. This has temporarily increased from17th March until 16 March 2021. Limit is now $5,000. (you can pool assets together). After 17thMarch 2021 it will go back to $1,000. Please check with your accountant and on the IRD web site.

Rent Arrears Assistance Housing Support Product This is a product to help tenants stay in their homes due to losing their jobs or reduced working hours Tenants should contact Ministry of Social Development. Available from 6thJuly 2020. Tenants need to prove hardship and they will be asset tested. Can help with overdue rent payments. Tenants can get up to $4000 in the next 12 month period.

Associations Liability Insurance Responds to a civil claim made against an association or a person serving or engaged by the association in carrying out their duties, whether salaried or not. Covers liability to the claimant as well as the cost of defending the claim. Both the association and individual officers of the association are covered. The policy includes any past, present or future director, secretary, officer, trustee committee member or employee of an association or any other person acting on behalf of the association or at the direction of management. The association is also covered for the cost of indemnifying its officer. Cover does not apply for Breach Of Professional Duty though.

Disclaimers It is vital that you still show disclaimers on everything that you do as an Association Please let me know if you need a copy of one.

Important information on rent increases Rent increase notices can be given now provided the increase takes effect after the six-month freeze period (after 25 September 2020, unless the legislation is extended).

Giving notice to increase the rent: A landlord must give their tenant at least 60 days written notice of a rent increase. Boarding house landlords must give their tenant at least 28 days written notice. The notice must be served in writing, say how much the rent is increasing by and the day the increased rent is due. The landlord should keep a copy of the notice.

Points to remember on rent increases Landlords can only increase rent after the first 180 days of the tenancy provided the increase is not within 180 days of the last increase. Now only once per year. Landlords can only increase rent for fixed-term tenancies if the tenancy agreement allows this. Special rules apply if a tenancy agreement is subject to an annual rent increase process

Healthy Homes important dates From 1 July 2020 Now changed to 1 December 2020 Landlords must include a statement of their current level of compliance with the healthy homes standards in any new, varied or renewed tenancy agreement. From 1 July 2021 Private landlords must ensure their rental properties comply with the healthy homes standards within 90 days of any new, or renewed, tenancy. All boarding houses (except K inga Ora (formerly Housing New Zealand) and Community Housing Provider boarding house tenancies) must comply with the healthy homes standards. From 1 July 2023 All K inga Ora (formerly Housing New Zealand) houses and registered Community Housing Provider houses must comply with the healthy homes standards. From 1 July 2024 All rental homes must comply with the healthy homes standards

Heat Pumps I have heard that there is a shortage of heat pumps Some cheaper heat pumps are out of stock Remind your members to organise the Healthy Homes requirements as soon as they can to avoid fines.

The RTA Amendment Bill: Received the Royal Assent on the 11thAugust so it becomes law in 6 months. (February 11th2021)

The RTA Amendment Bill: When looking on line for the bill be careful to get the correct one it is 218-2 The link can be found here: http://legislation.govt.nz/bill/government/2020/0218/latest/LMS29492 9.html

Supplementary Order Paper there were 15 pages that were introduced at the time of the reading. The following slides are a summary of them

Protections for tenants experiencing family violence Victims of family violence can end a tenancy with two days notice. They must provide appropriate evidence of family violence with their notice. This might include a signed declaration by a women s refuge worker or a Protection Order from the Family Court. Enabling a tenant to end a tenancy quickly will have financial implications for co-tenants. The provisions require the landlord to reduce the rent for two weeks to address this issue. After two weeks, the landlord can reinstate the rent. These family violence-related provisions will come into effect 12 months after Royal assent, or earlier if the Government agrees, by Order in Council.

Termination notices where a tenant physically assaults a landlord A landlord can give a 14-day termination notice if the Police lay a charge against the tenant for physically assaulting the landlord or owner, the landlord or owner s family member, or the landlord s agent. Landlords must provide evidence of the Police charge with the termination notice. Tenants can challenge this notice in the Tribunal. This new notice ground is in addition to the already existing section 55 provision which enables landlords to apply to the Tribunal to end a tenancy on the basis of assault.

Rent increase commencement change As part of the Government s response to COVID-19, the commencement date for the provision in the Bill that limits rent increases to once every 12 months is being brought forward. This will now take effect the day after Royal assent (11thAugust). Any notice of a rent increase from the day after Royal assent will need to take effect: after 26 September (due to the current rent increase freeze); and 12 or more months after the last increase. This change will give tenants better medium-term certainty as to their housing costs.

Extending the COVID-19 provisions for Tenancy Tribunal hearings via telephone and video conference The temporary COVID-19 provisions to enable the Tenancy Tribunal to hear cases via telephone and video conference are being extended for another six months from their current expiry on 25 September. These provisions give the Tribunal greater flexibility and can help reduce wait times. This extension will help the Tribunal catch up on the backlog caused by COVID-19. Officials will consider whether a longer-term change would be suitable in due course.

General Discussion

Napier Thank you