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Are you a landlord? Keep up with the changes
accelerateonline • Mar 04, 2020
With a third of New Zealanders renting homes, and some for a lifetime, it’s key to have clear, fair rules for tenancies. The Government’s tenancy law reforms announced late last year aim to improve tenants’ security and stability while protecting landlords’ interests. The Residential Tenancies Amendment Bill is now making its way through Parliament, with the Select Committee due to report on it in June this year. We’ll keep you posted on the changes.
What landlords need to know:
- You will only be able to increase the rent once every 12 months (instead of six).
- You won’t be able to get rid of tenants without a reason. Currently, periodic tenancy agreements can be terminated without cause as long as the landlord gives 90 days’ notice. The RTA will now have a list of reasons you have to choose from.
- Tenants will be able to add minor fittings such as brackets to secure furniture against earthquake risk, to baby proof the property, install visual fire alarms and doorbells, and hang pictures.
- Rental “bidding wars” will be banned.
- The Tenancy Tribunal will be able to award compensation or order work to be done up to a value of $100,000 (instead of $50,000).
- New tools will be available to help you take direct action against tenants breaking the rules.
Changes relating to damage, methamphetamine, and unlawful rental premises:
- If tenants (or their guests) damage your rental property because of careless behaviour, they’ll be liable. They can be charged up to a maximum of four weeks’ rent or your insurance excess, whichever is lower.
- If you have insurance, you need to include this (and the excess) in any new tenancy agreement. You must also note that a copy of the policy is available to the tenant on request.
- You can now test for methamphetamine while your tenants are living there. You need to give tenants at least 48 hours’ notice (but not more than 14 days’ notice). You need to give boarding house tenants 24 hours’ notice.
- You have to meet all legal requirements relating to buildings, health, and safety that apply to your rental property. You also have to ensure your property can legally be lived in at the start of the tenancy.
Accelerate - December 2023
Accelerate August 2023
Inland Revenue have recently announced this year’s livestock Herd Scheme Values and we think this is a great opportunity to update you on the latest movements. The Herd Scheme Values are the National Average Market Values, determined by a process involving a review of the livestock market as at 30 April.
The values for Dairy this year have seen a fall in values across all female classes, but increases across all male classes. The fall in R1 heifer values can be attributed to the prohibition of live export by sea commencing from 30 April 2023. For the first time the National Average Market Value for R1 Heifers is less than the National Standard Cost of breeding and rearing an R1 Heifer.
In contrast to Dairy values Beef values have increased on average 9% and are almost at record values for all classes.
Sheep values have all fallen from the high of 2022, slipping back an average of 10.2%. Whilst values have fallen, they are still either the second or third highest that they have ever been depending on which class of sheep you are looking at.
Goat values have increased on average 7.8% with almost all classes of fibre and meat producing goats at record highs. The value of milking goats continues to be well down from historic highs, except for breeding bucks which are at their highest value.
Like the rest of the world, New Zealand has reeled from the aftermath of Covid, rising inflation and interest rates, and the cost-of-living crisis. This year we also have a massive storm damage repair bill.
Any tax cuts, or changes to the tax thresholds were vetoed in Budget 2023 as this was viewed as worsening inflation.
Budget 2023 builds on the $889m already provided in response to this year’s storms. A further $6b is allocated for a National Resilience Plan , for rebuilding after weather events. $71b is committed to new and existing infrastructure projects: not only storm damaged communications, power and roading, but schools, hospitals, public housing, rail and road.
