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Fortune Manning Explains New Residential Tenancies Act And Kiwisaver Changes

Wednesday 28 September 2016, 4:56PM

By Beckie Wright

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As Fortune Manning explain it, the recent changes to the Residential Tenancies Act aim to protect both landlords and tenants in New Zealand, focusing on making rental homes safer and healthier, as well as ensuring that processes are in place to facilitate fair and effective residential tenancies.  As of 1 July 2016, changes in relation to several tenancy factors are now in force, in particular the adherence to proper insulation. Any tenancy agreement commencing after this date requires a statement from the landlord providing details about the type, location and level of insulation in the rental home.

Similarly, landlords are required to install smoke alarms in all residential rental properties, and any alarms installed after 1 July 2016 need to have long life batteries and a photoelectric sensor. Tenants need to replace the batteries and inform their landlord of any smoke alarm malfunctions. Also, the new law provides for a more efficient process for landlords to regain possession of their rental properties, when they have been abandoned.

Under the new legislation, the Ministry of Business, Innovation and Employment have a greater power of enforcement in respect of upholding tenants rights, and they are now able to investigate and take proceedings to the Tenancy Tribunal, even without the tenant’s consent. However, it is now an unlawful act for a landlord to give retaliatory notices when a tenant exercises their rights under their tenancy agreement, the Residential Tenancies Act, or by making a complaint relating to the tenancy. The Fortune Manning team can assist landlords and/or tenants in ensuring that their rental home or tenancy complies with the new legislation.

 

On a slightly different note, they also explain how KiwiSaver changes can help home buyers to get a foot in the door, literally. Clarifying this new law, as of 1 July 2016, the income limits from the previous house owner eligibility criteria have been dropped.  Previous homeowners low levels of assets (determined by a "realisable asset" test) are now able to access their KiwiSaver funds to buy a home regardless of their income. The rest of the eligibility criteria for a second chance withdrawal remain unchanged.

 

As of 1 August 2016 the income and house price caps for HomeStart Grants have increased making HomeStart grants accessible to more first home buyers. The income limit for eligibility under the HomeStart grant has increased to $85,000 for an individual and $130,000 for a couple with a joint income. The house price caps have increased across the country by $50,000 for existing homes and $100,000 for new builds.

 

As Fortune Manning explain, previous owners are also eligible for the HomeStart grant.  The realisable assets test as mentioned above will need to be satisfied in order to receive the grant and will be based on the price cap for existing homes. To take advantage of these changes, please contact the Fortune Manning team at http://www.fortunemanning.co.nz .