Harcourts is New Zealand’s largest and most trusted real estate group*, with over 2,280 sales consultants across 195 offices and a growing property management team. For more information visit www.harcourts.co.nz. While every effort has been made to ensure that the information in the publication is accurate we recommend that before relying on this information you seek independent specialist advice. *Readers Digest Most Trusted Brand Survey 2013-2019.

Property Management FocusBringing you news from the world of New Zealand property management.

ISSUE 3 // 2020

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.The timeframes for the new measures are:• The measures take effect by Thursday 26 March 2020.• The rent freeze applies for an initial period of six months.• The protections against terminations will apply for an initial period of three months.• At the end of both initial periods, the Government will evaluate whether they need to be extended.

Importantly, where a tenant has symptoms of COVID-19, or is confirmed as positive, this is not grounds for a landlord to terminate a tenancy. Nor is a tenant required to notify their landlord if they test positive for COVID-19. However, we encourage tenants to advise the landlord, if the landlord needs to attend the property while the tenant is self-isolating, for example, if the landlord needs to undertake urgent repairs at the property.For full information on the new measures and what they mean for landlords and tenants, please visit:The Ministry of Housing and Urban Development COVID-19 information page The Minister’s announcement on the Beehive website Source Ministry of Business, Innovation & Employment

Tenancy Services Announcement 25 March 2020The 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.

A message from Bryan Thomson, Managing Director, Harcourts New Zealand

We are all in possibly the most challenging time of our generation, but together we will push through. Harcourts offices are closed and our team members will be working from home, however we will continue to maintain the highest level of service to our clients, landlords and tenants using technology. The strength of the New Zealand community has never been more important. Keep your families, friends and communities safe by staying home. Be positive, proactive and kind. That is what a “Kiwi” does in times of need. We will continue to communicate with you. Please communicate with us. We are here to assist.

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Harcourts is New Zealand’s largest and most trusted real estate group*, with over 2,280 sales consultants across 195 offices and a growing property management team. For more information visit www.harcourts.co.nz. While every effort has been made to ensure that the information in the publication is accurate we recommend that before relying on this information you seek independent specialist advice.*Readers Digest Most Trusted Brand Survey 2013-2019.

We are staying abreast of any changes to the Residential Tenancies Act as they occur and our property managers, whilst not at the office, are available to assist landlords, help you navigate any changes and answer your questions. The Government could make further changes including, but not limited to, extending the rent freeze period beyond six months and the no termination period beyond the initial three month period.

Increasing rent for the next six months for any reason is now an unlawful act. Harcourts property managers have cancelled all rent increases and will not be issuing any rent increase notifications during the next six months.

A landlord may now only apply to the Tenancy Tribunal for termination when a tenant is in rent arrears of 60 days.

During this difficult time, Harcourts property managers are adopting a sensible approach to rent arrears, however, a tenant is still liable for rent arrears. We are assisting tenants by providing them with information about financial assistance they can access and maintaining communication levels with all parties concerned.

Whilst routine physical inspections cannot be performed during a lockdown period, if there is an item of concern, we are engaging with tenants and using videos and/or photos when possible.

Only emergency maintenance relating to the health and safety of tenants and property can be performed. An example of this would be a blocked toilet or sewer where the property manager is entitled to call a tradesperson. Emergency maintenance will come under

essential services. Harcourts property managers engage qualified and reliable tradespeople and we have these at the ready, to respond to urgent maintenance as necessary.

Tenants must still meet their other obligations under the Residential Tenancies Act, however landlords are being asked to be flexible where they can and Harcourts property managers are continuing to maintain excellent communication levels with landlords and tenants.

Harcourts Response to COVID-19In response to the lockdown, we want to assure all Harcourts clients that our offices have equipped their staff to work from home. Staff will continue to receive calls and emails from our clients and have access to data and information systems. The intention is to keep our business processes operating and minimise disruption to Harcourts clients.

Harcourts property managers remain committed to assisting landlords and tenants to navigate the new regulations during the lockdown period and beyond.

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