The Residential Tenancies Amendment Bill was passed on 5 August 2020. Property investors can now focus on ensuring they have all the required systems and processes in place to fully comply with the amendments.
Below are some of the key changes to the Residential Tenancies Act, and their effective dates.
For a more complete reference of Frequently Asked Questions (and Answers) relating to the Act and its implementation, compiled by the Ministry of Housing and Urban Development, click here.
- Rent increases will be limited to once every twelve months.
Effective on or after February 11, 2021
- Rental property owners will only be able to end periodic tenancies for reasons specified in the legislation.
- Rental customers will be able to add minor fittings to the property.
- Fixed-term tenancies signed on or after 11 February 2021, will become periodic tenancies at the end of the fixed term unless the landlord and tenant agree otherwise or notice is given.
- New penalties are introduced and penalty amounts will be increased 50%-80%
- Soliciting rental bids will be prohibited.
- A party who is successful in the Tenancy Tribunal can have their identifying details removed from the Tribunal’s decision.
- Rental customers who need to leave a tenancy quickly due to family violence will be able to do so by giving only 2 days notice (August 11, 2021).
A summary of changes is set out in the attached Tenancy Services document.
If you have any questions about this legislation and what it means for you and your investment, please get in touch with your local Quinovic office. We are here to help.