This Supplementary Order Paper amends the Residential Tenancies Amendment Bill to make incremental, positive changes to the lives of New Zealand renters through several distinct changes.

The first change amends clause 6 to insert new section 13A(1AA) to include the right for all existing tenants to have a right of renewal or right of first refusal on the home they live in when their lease period has ended. Good relationships between landlords and tenants can be supported by providing for the agreement to continue in a straightforward, timely manner.

The second change amends clause 6 to insert new section 13A(1AAB) to change the standard tenancy forms so that any tenancy contract must state what criteria the landlord will use to calculate any future rental increase. This provides a degree of financial transparency for both tenants and landlords, and allows both parties to plan for the future accordingly.

The third change amends clause 6 to insert new clause 6(2A) and new section 13A(1AAC) to remove the obligation on tenants to pay any leasing fee that may arise from the renting out of a property. Leasing fees are an unfair surcharge on renters and are required to be paid at what can already be a very expensive time, when moving costs and bond payments are taken into consideration.

The fourth change amends clause 6 to insert new section 13A(1AAD) to provide that fixed-term tenancies are for a default term of 3 years on standard tenancy agreements, with a provision for the parties to opt out from that and set the fixed term of their choice. Secure, long-term tenancies are particularly helpful to families who rent—they enable parents to make plans for finances and their children’s schooling and recreation, as well as allowing them to establish roots in a community.

The fifth change inserts new clause 9A to provide that rents cannot be increased more than once every 12 months. Currently, New Zealand renters with periodic tenancies can, legally, face rent increases every 6 months; renters on fixed-term tenancies can also face rent rises within the dates of the tenancy if a landlord chooses to include that provision in the rental agreement.

The sixth change amends clause 13 to introduce minimum standards that all properties for rent in New Zealand must meet. New Zealand rental houses should have to meet basic structural, safety, and energy requirements so that they do not endanger the health of the people who pay to live in them. The criteria will need to be met by all State-owned properties within 2 years of the law coming into force, and all privately owned properties within 4 years.

The final change inserts new clause 14A to remove the ability of landlords to give a reduced notice period of 42 days in the event that they decide to sell their tenanted property, and restores the standard 90-day notice period.