Our fourth meeting of the year is being held at Honest Lawyer Monaco on Tuesday 20th June. We commence with our regular pre meeting meal at 6 pm followed by the meeting proper starting at 7:30 pm.
Hon Dr Nick Smith MP is speaking. The last time Nick shared with us he explained what the SHA’s were all about. Since that meeting we have had an amendment to the tenancy laws and bother me Nick has just introduced yet another Bill to amend the RTA. What is this all about? Do you understand what is happening? How will you cope? Come and hear what the Minister has in mind for dealing with you. Send me your bookings for the meal. They are good value and it is always fun chatting to other investors.
THE PAPER WAR
BATTLE FOR THE MIND AND YOUR POCKET
This newsletter is a little shorter than normal because I have so many other papers for you to read. The issue is a new Bill has been introduced into Parliament to amend the RTA yet again. This is the link that details what is proposed. http://www.legislation.govt.nz/bill/government/2017/0258/latest/DLM7247512.html?search=ts_act%40bill%40regulation%40deemedreg_Residential+Tenancies+Amendment_resel_25_a&p=1
I encourage you to do your best to read what is being proposed. The brief half page explanation document issued by the Minister does not really explain it very well. This Bill is needed to correct the Osaki fiasco, an overreaction to deal with one embarrassing failed tenancy tribunal case related to tenants living in commercial properties, and a half-hearted attempt to do something about the Meth contamination epidemic that many people are screaming about.
I am struggling to fully understand what is proposed. I thought this had something to do with my grey hair turning white. However if you read what Melissa Poole the Principle Tenancy adjudicator says in her letter to the Minister it is clear she and the courts are also struggling.
Andrew King’s take on the new Bill is here. I think he has missed some important points.
The proposal is to limit tenants liability to four weeks rent this being of course the value of the bond. Anyone that is a regular attendee at the tenancy tribunal knows that it is common for claims of 8 to 12 weeks and more equivalent rent to be made. It is no surprise what sort of people are more likely to have an “accident.” Landlords are upping their vetting and needing to avoid high risk tenants. The insurance companies are demanding higher and higher standards and even MBIE are parroting the same message.
Of course the Government through their MSD know that four weeks’ worth of bond is just a joke and they are starting to see more and more needy people left homeless because they are not likely to be chosen due to their bad history or “no history”. MSD have come up with another silver bullet called Tenancy Costs Cover. The idea appears to me to be a way of circumventing the RTA restrictions on bonds and guarantees. I think this is both unlawful and unacceptable for a Government agency to create such a conflict. If they know the law is not working they should ask for it to be changed.
OUR NEXT MEETING
Our next meeting is being held on 1st August. Michael Riddell an economist and political blooger is speaking. Michael spoke to us three years ago. We need sharp minds like Michael’s to clear the air and see the wood from the trees.
Regards
Glenn
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