'Bucket toilet' for garage tenants: The vulnerable Kiwis reforms won't help

Tuesday, 16 October 2018

The Government's proposed changes to rental laws include an end to no-cause tenancy terminations, and a limit in rent increases to once a year.

A landlord of a west Auckland property was shocked to find that his evicted tenants had sub-let the garage to a family with three children, who were using a bucket as a toilet.

The sublet had been done without permission. '[It's] very sad but also very filthy,' investor Matt Gilligan said. 'Just another day in a landlord's life.'

New Zealand's tenancy landscape – and what that typical landlord's life is like - is under increased scrutiny as the government works through its reform of the Residential Tenancies Act. But commentators on both sides say the debate risks getting caught up on extremes – filthy tenants or reckless landlords – while failing to address the needs of those most vulnerable.

The Ministry of Business, Innovation and Employment has released a survey seeking responses from interested parties about how the reform should progress.

* Auckland landlord fined $2000 for not having smoke alarms

The mess left behind after tenants were evicted from a west Auckland house and garage.

* Serial rent dodger Anna-Ria Melroy sucks in landlords with tale of woe**

It asks things such as whether a landlord ending a tenancy because of anti-social behaviour should be required to issue a notice to the tenant to offer a chance to improve, whether tenants should have more responsibilities for the properties they rent, whether a landlord should be able to refuse to let a tenant keep a pet, and whether rent increases should only be allowed once a year.

Reports are coming in from around the country of landlords selling up their properties ahead of tougher tenancy regulations. The government is considering changes to the Residential Tenancies Act - including limiting rent rises to once a year and s

Property investor Nick Gentle said those engaging most heavily with the process were people who were concerned about cases on the margins - 'awful properties and tenants who just wreck homes'.

'There is quite a bit of concern that it is going to be harder to remove bad tenants and a lot of concern that housing is simply going to become more expensive both to provide and rent.'

The people who were most vulnerable, such as the tenants who were stuck living in Gilligan's garage, would not be helped.

'No one wins,' he said.

Another investor, Matthew Gill, said the process was not asking the right questions, and the consultation survey questions were directed towards Labour's pre-election promises.

'None of the changes are directed to helping landlords, apart from the possibility of a pet bond. [Government agencies] will be getting more powers to prosecute 'bad landlords'. There is no provision in their reform for an improvement in landlords' protection or any recourse for bad tenants.'

Gentle said investors were also worried no moves had been made to simplify the process of tackling rental arrears. Up to 80 per cent of Tenancy Tribunal cases relate to unpaid rent.

'It's usually a straightforward hearing but it takes a long time and a lot of resource from the tribunal too,' Gentle said.

'The reason people say silly things like 'the Tenancy Tribunal almost always rules in favour of the landlord' is because of that. Almost all claims are for rent arrears and simple to prove.'

Gill said there should be an improvement in tribunal funding.

'Rent arrears are also the easiest claim to prove with bank statements etc as evidence. If there could be a fast-track option for rent arrears avoiding court, this would also save the Government money.

'There should also be stricter rules for tenants that don't pay rent or damage a property.'

Property investor Matthew Gill says the Government's consultation isn't asking the right questions.

Shamubeel Eaqub, who argued for a rental market overhaul in his book Generation Rent, said the review seemed aimed at finding a middle ground 'It's trying to shift from a very landlord-leaning act to one that finds a better balance.'

That would need to give tenants both rights and responsibilities he said. 'It's a big step up from where it has been but you have to do that within the contains of what is culturally acceptable in New Zealand.'

But he said it should not be expected to help people such as Gilligan's garage-dwellers.

The revamped law would still allow him to remove the original tenants for engaging in an unapproved sublet.

'But people who are living in the garage are living there because they don't have the resources. The rental housing market is never going to be able to providing housing for these folk. They need community housing, state housing…. It doesn't matter how good the rental rules are if you don't have money, you don't have money.'

The survey is open until October 21. You can access it here.