The Minister of Finance announced on 23 March 2020 a freeze of rent increases and an extension of no-cause terminations. This has been applied as law through the COVID-19 Response (Urgent Management Measures) Amendment Act.
These measures will support New Zealanders to stay in their rental properties with a six-month freeze on residential rent increases and increased protection from having their tenancies terminated.
The key changes for landlords and tenants to be aware of are:
- There is now a freeze on rent increases.
- A rent increase notice from a landlord will not have the effect of increasing a tenant’s rent, unless the rent increase has already taken effect.
- Tenancies will not be terminated during the lock-down period, unless the parties agree, or in limited circumstances, regardless of when notice was provided.
- Tenants will still be able to terminate their tenancy as normal, if they wish.
- Tenants will have the ability to revoke termination notices that they have already given, in case they need to stay in the tenancy during the lock-down period.
What options are available to alleviate the stress of making rental payments?
The Government has announced that people and businesses can apply for wage subsidies to assist those affected by the coronavirus crisis.
However, if you are still worrying or in a position where you cannot pay the rent, get in touch as soon as possible with your property manager. Together, you will be able to explore the options and work on a plan. By being transparent and communicating early on about your financial distress, you will manage to bypass potential issues before they arise.
If you show good faith and because this situation is unprecedented, most landlords should be willing to compromise. If they can afford it, some might even be ready to negotiate a temporary rental reduction to help you get through this tough time.
How can I secure tenants during this economic downturn?
Even during the lockdown, your property manager will look to secure tenants by organising virtual home viewings, with online tenancy applications and electronic lease signing.
To make sure your property is chosen against the competition, review the rent prices nearby, similar properties for lease and ensure that your online presence is a standout. You and your property manager can look to use all the available resources such as virtual tours, photos, virtual staging, floorplans, etc.
Put yourself in the shoes of potential renters looking to find a new home from the comfort of their couch and browsing through properties. You need to make sure that the experience they will get from your listing is as informative and lifelike as it can be.
How can potential tenants inspect my property?
If you are trying to rent your investment property, you have the option to conduct open homes and viewings by private one-on-one appointments only once the alret level has been reduced to level-3 or below.
However, the easiest and safest way to find new tenants is to offer virtual tours of your property.
What is going to happen with routine rental inspections?
Physical routine inspections are currently prohibited. However, property managers can still conduct virtual inspections using tools such as FaceTime, WhatsApp, Zoom, etc. If they require a closer review of such or such feature or aspect of the property, they can request photos to be emailed to them.
It is also an opportunity for tenants to ask any question or discuss any worry they might have about the property or their situation during this unprecedented time.
