New Zealand Restores ‘No Cause’ Eviction Power for Landlords

The National-ACT-NZ First coalition government has restored power for landlords’ power to evict tenants without showing cause, a right previously abolished by the Labour government abolished.

Any periodic tenancy (rental agreement that does not specify an end date) can now be terminated with 90 days’ notice, though in some circumstances, it can be as little as 42 days where it was previously 63.

If the tenancy is for a fixed term, a landlord can now give 21 to 90 days notice at the end of its term without requiring a specific reason.

Tenants, though, can also end a periodic tenancy or renew or extend a fixed-term tenancy with just 21 days’ notice rather than the previous 28—though the landlord can, of course, still refuse.

While New Zealand has previously had a tight rental market for many years, immigration outflows—mostly to Australia—in the past year have eased the pressure somewhat, improving the chances an evicted tenant has of finding a new home before the notice period ends.

The most populous city, Auckland, however, is still grappling with long-term housing shortages.

The lobby group Renters United, which represents tenants, said renters have a right to know why they’re being “kicked out” of their homes.

“Landlords should not be given the power to evict people without reason,” the group said in a statement.

“Removing the rights of renters means removing the rights of children, families, students, and the elderly. We all deserve the dignity to rent without being evicted without a reason.”

Meanwhile, the amendment also introduces “pet bonds,” allowing landlords to charge a higher bond amount if they allow pets, and clarifies that they can prohibit smoking within their property.

Pet bonds can be up to two weeks’ rent on top of the usual four-week general bond and will apply per premises rather than per pet. It will be unlawful for landlords to refuse permission for tenants to keep pets unless they have reasonable grounds to do so.

Housing Minister Chris Bishop said reintroducing the “no cause” provision would give landlords more confidence when deciding whether to rent to tenants who “may otherwise have been considered too risky” and would thus benefit people looking for rental property.

“The suite of sensible pro-tenant and pro-landlord changes in the Bill passed into law by Parliament today will give landlords confidence to re-enter the market and tenants more ability to secure a rental home,” he said.

Healthy Homes Standards

The major concern about restoring “no cause” evictions is that they could be used to circumvent the country’s ‘healthy homes’ requirements, which provide minimum standards for attributes such as insulation and airflow.

These laws were introduced after it was revealed that many rental homes were so damp that tenants couldn’t remove black mould, a serious health hazard.

“The Healthy Homes Standards only work if renters are able to enforce them,” Renters United said.

But if a tenant complains that their home isn’t compliant, the landlord can now evict them rather than be forced to address the problem.

The group claims that 28,000 hospitalisations each year are for “diseases potentially attributable to inadequate housing.”