Rent increases
- Landlords barred from increasing residential rents for the next six months effective 26th March 2020.
- A rent-increase notice from a landlord will have NO effect unless the rent increase has already happened.
- The rent freeze applies to boarding houses in the same way.
UPDATE: From 12 August 2020, rent increases are limited to once every 12 months. This is a change from once every 180 days (six months). There continues to be a freeze on rent increases, which means landlords cannot increase rent until after 25 September 2020. Landlords can now send noticed to increase rent as long as it takes effect AFTER 25th September.
Tenancy termination
- The landlord can't terminate tenancies during the lock-down period unless both landlords and tenants agree, or in limited circumstances.
- Limited circumstances include:
- If tenants' rental payment were 60 days late (and the Tribunal determines that they didn't make reasonable endeavours to pay rent)
- Significant property damage
- Significant antisocial behaviour or threats/assaults towards the landlord
- If tenants' rental payment were 60 days late (and the Tribunal determines that they didn't make reasonable endeavours to pay rent)
- COVID-19 isn't grounds for a landlord to terminate a tenancy
- If a landlord had already given a termination notice that will come into effect after 26th March 2020, this notice is of no effect.
- The tenants can now choose to ignore previously given notice to end the tenancy and remain in the property while Alert level 4 is in place.
- Fixed-term tenancies will now become periodic tenancies upon expiry unless the tenant gives notices or parties agree otherwise.
- Tenants are still able to terminate tenancies as usual, although they’re being encouraged not to, unless absolutely necessary.
- Tenants cannot be evicted because the landlord's family wish to move in.
The protections against terminations will apply for an initial period of three months but could be extended.
A failure to comply with the new law could see people fined up to $6,500 by the Tenancy Tribunal.
UPDATE: The above restrictions on tenancy terminations ended on 25 June 2020. From 26 June, landlords should give notice to terminate a tenancy under the standard Residential Tenancies Act 1986 provisions. Usual notice periods apply from the day a notice is given.
It's important to remember that tenants are still fully liable for their rent payments and any damage caused to the property. It is not acceptable for tenants to abuse the system by refusing to pay rent when they have the capacity to do so.
Renewals
If a fixed-term lease comes up for renewal during the level 4 period, then a fixed term tenancy will automatically convert to a periodic tenancy.
In December 2021 NZ moved away from the alert level system to the COVID-19 Protection Framework (traffic lights). Follow this link to the summary of real estate activities permitted under various traffic light settings
