Themes and Issues
Tenancy support services for landlords and tenants are important
Effective law requires:
- acceptance of the need for law;
- widespread knowledge and understanding of the legal requirements;
- quick, affordable and cost effective resolution of disputes between parties;
- quick and effective enforcement of breaches of the law.
The RTA provides for a government department (the Department of Building and Housing) to hold tenancy bonds in a Residential Tenancies Trust Account, and to perform each of the following functions necessary to administer the Act:
- research and investigate matters affecting the interests of landlords and tenants;
- make information available and take other steps necessary to ensure that members of the public are aware of their rights and obligations as landlords or tenants;
- provide advice to people on the provisions of the Act and their enforcement;
- investigate alleged breaches of the Act and take appropriate action;
- report to the Minister on matters relating to residential tenancies.
It also provides for a dispute resolution service via mediation and the Tenancy Tribunal to resolve disputes relating to tenancies.
Services for landlords and tenants are provided through Tenancy Services, a division of the Department of Building and Housing. Tenancy Services has 22 dispute resolution offices throughout New Zealand that provide information and advice, mediation and referrals to the Tenancy Tribunal and education for landlords and tenants. The Tenancy Services Centre also processes all tenancy bonds and provides free phone 0800 access to a tenancy and bond information service.
The potential users of these services are varied in terms of their social, cultural, socio-economic and other characteristics, and also their ability to access the information and services provided by Tenancy Services.
The Department of Building and Housing recently reviewed the effectiveness of Tenancy Services. The review commended the early intervention approach taken and noted widespread stakeholder support for the services provided. It also found that:
- the total costs of mediation (including the time taken) can deter some people from using the service, especially landlords and property managers who instead prefer either to filter out tenants that are likely to cause future problems or to mediate issues directly;
- some landlords believe that the Service is biased in favour of tenants;
- the nature of services provided varies between centres and the information and advice provided could be improved;
- the way in which advice and services are provided can be a barrier to some people accessing and using them (opening hours and location of centres for instance);
- time delays and direct and indirect costs deter people from using the service;
- ineffective enforcement of Tenancy Tribunal orders degrades the system.
Questions
- What tenancy services are critical to an effective rental housing market?
- Are these services adequately provided for in the RTA?
- What can be done to improve the administration of the RTA and the delivery of information and other services to both landlords and tenants?