New Zealand Property Investors' Federation

The NZPIF is the umbrella body for 20 local Property Investors' Associations throughout New Zealand.

(027) 357 9243

www@nzpif.org.nz

IMPACTS FOR LANDLORDS 

REMOVING 90 DAYS NOTICE

Being a successful landlord is all about managing RISK.

Removing 90 days notice is a bombshell for landlords that will cause many to get out of renting, resulting in a large rental shortage.

A landlord's choice of tenant is the single most important decision they make.  This risk is multiplied if the landlord can no longer give a no-cause 90 days notice.

IF LANDLORDS ARE UNABLE TO GIVE 90 DAYS NOTICE:

  • Landlord RISK will increase exponentially
  • Tenants with anti social behaviour will be very hard to remove  -  landlords cannot protect New Zealanders anymore
  • Landlords will NOT select first time tenants, or tenants with a colourful renting history or a sad story.  Those tenants have a higher risk
  • They will NOT give marginal tenants ‘a go' – they are a higher risk
  • Trials are unlawful.
  • ‘Riskier' tenants WILL NOT get a tenancy
  • Neighbours will be intimidated and threatened (see HNZC – shocking cases)
  • It will be nearly impossible to remove a tenant if witnesses are intimidated
  • The landlord's other good tenants will leave
  • Landlords will become exceptionally cautious in selecting tenants

RESULTING ECONOMIC IMPACTS

  • Up to 50,000 landlords will sell their rentals (NZPIF survey October 2019)
  • This could mean up to 100,000 rentals will be sold
  • Leading to a severe shortage of rentals 
  • And a increase in demand for rentals – which means rent increases
  • Rental housing crisis deepens
  • Significant decrease in Tax Revenue
  • Massive increase in Government expenditure required to house these tenants
  • The Government appears intent on reducing the private supply of rentals

IMPACTS FOR NEIGHBOURS AND NEIGHBOURHOODS

REMOVING 90 DAYS NOTICE

  • This is the future:   of not being able to give a no-cause 90 days notice: Below is a small selection of cases of neighbourhood problems caused by HNZC's anti-social tenants.
  • Key words in these examples are:  fear, threats, assaults, intimidation, drugs, violence, terrified.

New Plymouth: Suff- April 2019: On Saturday a 20-year-old man was shot in the arm in an early morning dispute at a Housing New Zealand

New Plymouth: Suff- April 2019: On Saturday a 20-year-old man was shot in the arm in an early morning dispute at a Housing New Zealand property at Plympton St, Brooklands, New Plymouth. Neighbours have made multiple complaints about gang related activity, drug dealing, loud parties, problematic behaviour, arguments, intimidation and large numbers of people coming and going from the house to HNZ, but say nothing has been done to rectify the situation.  National Party MP Jonathan Young believes there is a direct correlation between the anti-social behaviour and the Government's "no eviction" policy, and good people were being put under considerable stress. Phil Twyford states: "That's why Housing NZ takes a 'sustaining tenancies' approach which involves taking all reasonable steps to support tenants and their families to stay in their homes for as long as they need them. Eviction is a last resort."

Hawkes Bay: 11 Feb 2019: Hawkes Bay TodayThreats, intimidation and violence from Mongrel Mob members and their associates has turned a "lovely, quiet" Hastings neighbourhood to "feral", and residents have had enough. Rachelle owns a house next door to a Housing New Zealand (HNZ) property in Akina, Hastings, which got new tenants about four months ago.  Frequent visits from gang members, smashed cars on the front lawn, noise and violence have now become the new norm for her.  "Our street was a lovely, quiet, safe street," Rachelle said. Rachelle has called and complained to HNZ 12 times since December, and emailed them a couple of times, but feels like she isn't being heard.  "I keep getting told to ring the police or noise control because there is nothing Housing New Zealand can do.

Contd: Hawkes Bay 22 March 2019:  Herald     Housing New Zealand didn't evict anyone in Hawke's Bay in 2018, despite 578 complaints about the anti-social behaviour of its tenants.  Property condition and damage resulted in 160 complaints; there were 50 alleged illegal activity complaints, 43 alleged threat complaints, and 30 dog nuisance complaints.  HNZ declined a request to specify whether any of the total complaints were gang-related.

Motueka:  October 2018:   A Motueka resident is questioning Housing New Zealand's tenant policy after years of dealing with an abusive neighbour. The Motueka woman, who asked to stay anonymous for fear of retribution, has lived in her social housing property for more than a decade. Along with other neighbours, she's repeatedly rung the police, Housing New Zealand and Oranga Tamariki. But after years of reporting the neglect, the abuse and bad behaviour to every agency she can think of, she's all but given up.

Contd: Motueka: November 2018 –  'Incredible' change to troubled Motueka neighbourhood after tenant moves.   For the past three years, residents on York St in Motueka had complained of loud parties into the early hours, abusive language towards children at the address, and verbal abuse to passersby from a Housing New Zealand tenant in the neighbourhood. The matter came to a head at the end of September, when the street was the scene of a hit and run incident which put two people in hospital. A York St resident, who did not want to be named, said the change in the neighbourhood after the tenant moved out had been "incredible".

"It's amazing, the street is back to exactly what it was. The kids have come back out again, parents are letting their kids ride their bikes and scooters on the street.

"All of that had gone, because of this situation created by this one neighbour."

Christchurch: Stuff – 2019A Christchurch man who believes a Housing New Zealand (HNZ) property nearby is a drug house is frustrated no agency will act.  The Northcote resident told Stuff columnist Mike Yardley he estimated about 20 to 25 drug deals were happening at the house every day, and one day he noted 39. Complaints about HNZ homes are nothing new, with issues raised about its management of homes, while other neighbours have complained about being driven out by burglaries, assaults and public defecation.   Homeowners from across Christchurch have come forward after Stuff published details of repeated break-ins, brawls and faeces smeared on cars near a Housing New Zealand (HNZ) complex in the central suburb of Phillipstown, to report similar problems with tenants in other Government-owned properties.

One man claimed a neighbour had raised a running lawnmower to his face and another had dealt drugs from a flat for several years.

Christchurch:  August 2019:  A Christchurch Housing New Zealand (HNZ) tenant says she has endured attacks and threats from neighbours, but agencies have taken no action. The woman moved into the unit in December, she has a 4-year-old daughter.  Instead of finding a safe haven, the woman says she has become victim to tenants from a neighbouring property in the complex. "My wee girl doesn't want to leave the house. She's terrified."

  • Anti social tenants will terrorize neighbours and the community (see cases below)
  • One out of three homes is a rental
  • Mum and dad home owners living next to a rental can expect problems
  • The people lose control of their communities
  • Neighbours will be intimidated not to give evidence for evictions
  • Some of the intimidation is ‘Deadly Serious'
  • Young children and families will be traumatised, threatened, assaulted and intimidated – this is UNACCEPTABLE.
  • It is the good tenants that leave their homes
  • There will be significant demands on Police, Council and Noise Control officers

IMPACTS FOR TENANTS

REMOVING 90 DAYS NOTICE

Removing the landlord's right to give notice, and Labour calling it "sustaining tenancies" will not help tenants at all.  It will make things much worse for tenants.

At present: Only 1.4% of all tenancies are ended (for tenant anti social behaviour) by a landlord giving 90 days notice. (NZPIF research) 

  • As a result of landlords selling, there will be less properties to rent
  • This means higher rents  (supply and demand)
  • Less chance of a tenant getting a rental
  • Longer time to for a tenant to obtain a rental
  • Marginal tenants, first time tenants, tenants with poor references, a colourful background, or a sad story will find it hard if not impossible to get a tenancy
  • The best protection for all tenants is more houses – not less
  • So why is the Government reducing the supply of private rentals and making it harder for tenants to get a rental?

NEIGHBOURING TENANTS

  • New Zealand neighbourhoods are pepper-potted with residential tenancies.  The proposed changes will mean it is very likely that most neighbourhoods will be affected at some time by anti social tenants.
  • Even the worst anti-social tenant CANNOT be evicted by giving 90 days notice.
  • It is the good neighbouring tenants who will leave – this creates ghettos.
  • Even owner occupiers may sell up and leave the neighbourhood.
  • It will cause serious stress, alarm and fear for all neighbours.

  • The government has been piloting ‘security of tenure' with Housing NZ Corporation (HNZC)  – it has not worked for those neighbours
  • Refer to the HNZC cases where HNZC actively does NOT issue 90 day notices

 

IMPACTS FOR THE TENANCY TRIBUNAL

REMOVING 90 DAYS NOTICE

  • Right now – to evict an anti social tenant a landlord can give 90 days' notice
  • The Tenancy Tribunal is not involved – it is simple and effective. 
  • This means no additional costs and time for the Tenancy Tribunal

AS A RESULT OF THE PROPOSALS:

  • Landlords MUST take an eviction case to the Tenancy Tribunal
  • Landlords MUST obtain witnesses to prove the tenant's behaviour
  • Witnesses will be intimidated
  • Intimidation will range from – a look, to assault to threats to kill
  • Because of the intimidation the very serious anti-social tenants may not be evicted and intimidation, fear and threats will continue.
  • Adjudicators have to carefully assess landlord's and tenant's evidence
  • These will be long hearings adding to serious delays for tenants and landlords.
  • The Tenancy Tribunal will receive 7000 or more extra applications for termination – rather than a landlord simply giving a 90 day notice.  (NZPIF Survey Oct 2019)
  • This could add as many as 3500 extra sitting days (7000 x ½ day) to the Tenancy Tribunal