The New Zealand Property Investors Federation (NZPIF) welcomes the proposed amendments to the Residential Tenancies Act 1986 (RTA) as a step towards addressing the ongoing housing crisis and creating a fairer rental market for both rental property owners and tenants.
These changes aim to provide owners with necessary flexibility while safeguarding tenants' rights, ultimately contributing to a more stable rental environment.
Tim Horsbrugh, executive member of NZPIF, welcomes the proposed changes as a means to restore balance and mitigate risks for both investors and tenants. "The reinstatement of the 90-day termination clause will enable rental property owners to consider a broader range of tenants, promoting inclusivity and making renting more accessible."
While the removal of these terminations in 2020 aimed to provide tenants with more security, it actually deterred property owners from being a part of the rental market therefore causing worse outcomes for tenants.
Sue Harrison, President of NZPIF, points out the challenges faced by investors amidst the current housing market dynamics. "Rent increases are failing to keep pace with inflation and escalating expenses have put investors under financial strain," she says.
Restoring the 90-day ‘no stated reason’ termination clause and reintroducing fixed term tenancies will hopefully encourage property owners to re-enter the rental market knowing they can manage their tenancies with more confidence.
Furthermore, Sue highlights the reintroducing fixed-term tenancies, particularly in tourist and student towns. She believes this change will provide relief for both tenants and investors in these areas.
The government's commitment to addressing the housing crisis is appreciated, and the New Zealand Property Investors Federation looks forward to continuing to work with them throughout the legislative process, to ensure these changes benefit both rental property owners and tenants alike.
For media inquiries, please contact: communications@nzpif.org.nz
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