RSS Feed

Sandra has a problem

Tuesday, November 05, 2019


Sandra has a problem.

Sandra and her husband Terry live in a small house down a private right-of-way. They have been there for a few years, and like the location. It is handy to Terry’s work, and Sandra can easily catch the bus to her part-time job as a teacher aide.

The neighbouring house on the road frontage is a rental, and some months ago new tenants moved in. Although the previous occupants were pleasant and quiet, the new tenants are not. After they had lived there for just two nights Sandra heard them screaming at each other, obviously holding a noisy and heated domestic argument. This has now become a regular occurrence. They also take drugs, get drunk regularly, fight, have large and intimidating gang members visiting, play deafening music until the early hours, and regularly have the police calling on them.

“So what”, Sandra asked, “Can we do about it?”

“Find out who is the landlord”, she was told, “And ask them to take action”.

The landlords, she has now discovered, are Housing New Zealand.

Sandra spoke to the property manager there and voiced her concerns.

“We can discuss the problem with those tenants” she was told, “And help them to behave better. We have an overall aim of maintaining sustainable tenancies and to help people remain in, or get back to, a state of well-being and assist them to lead happy, balanced, fulfilling lives.”

“But what about us?” asked Sandra. “If these people continue to carry on like this, will you get rid of them? They are causing havoc in the neighbourhood!”

“Like all landlords, we work under the Residential Tenancies Act,” said the manager. “There are provisions under that Act to terminate the tenancies of people who exhibit anti-social behaviour. However, we have been instructed by the Government that we are not to use this provision, and instead, we must work with our clients to help them live better lives”.

“While we suffer!” said Sandra.

Not content with leaving the neighbours of HNZ houses vulnerable to feral tenants like these, the Government is now considering removing the ability for all landlords to terminate a tenancy with what they call a 90 day ‘no reason’ notice. This change would apply to both Housing New Zealand and all private landlords.

Sandra is not a tenant. She and Terry own their own home, but they now have to put up with neighbours from hell. They could sell, but why should they be forced out? And who would buy? So this move affects everyone – owner-occupiers, the good tenants next to the problem tenants, and landlords.

The publicity around this proposal seems to be based on some fundamental misconceptions around the powers of landlords and their behaviour.

There is actually no such thing as a ‘No Reason 90-day Termination Notice’. There is always a reason why a landlord would issue such a notice. To actually state the reason is to give grounds for an argument and for the subsequent making of false promises about improvements in behaviour and conduct, promises that are seldom if ever kept. Every sane landlord’s fundamental desire is to keep every rental property tenanted for each and every day of the year. That’s the way they maximise their cashflow and thus their income. No landlord terminates a tenancy just on a whim, because they feel like it. A days vacancy is a day's rent they can never ever recover, and most terminations result in a week or more between tenants moving out and the new tenants moving in. That is income permanently and irrevocably lost.

Contrary to widespread belief, a landlord cannot evict a tenant. ‘Eviction’ sounds great in the shock-horror media stories, but no residential landlord actually has the power to evict. He can terminate a tenancy within the legal timeframes, but if the tenant then refuses to leave the property the landlord must then go to the Tenancy Tribunal and ask for a Possession Order. If then, despite the Possession Order and the presence of a Bailiff, the tenant still occupies the property the landlord must then go to the District Court with his Possession Order and request an Eviction Order. If the District Court issues that Order he must then take that to the police for them to actually carry out the eviction. Thus an eviction is a matter for the District Court and the Police, never the landlord. The popular image of jackbooted landlords evicting tenants left right and centre is pure fabrication.

If the proposal to remove 90-day notice termination proceeds, any disruptive and socially undesirable tenants could only be removed by a Tenancy Tribunal ruling. This would need proof from their neighbours as witnesses to their misdeed. Sandra, like most people, would be fearful of giving evidence in front of a Tenancy Adjudicator against their feral neighbours while their intimidating gang associates look on. This opens up the potential for verbal abuse and physical retaliation.

It is likely that this change will be accompanied by the removal of the fixed-term tenancy option so, in effect, all tenancies will be periodic, only terminating either when the tenant chooses to depart or can be proven to have breached either the Tenancy Act or the tenancy agreement. Even on a sale of the property, the tenant would have the right to remain. The property may well be trapped into the rental market, and if sold, that would have to be to another landlord, not a potential owner-occupier. Would people rent out their own homes while they are away overseas for a year or two? Probably not, as under this proposal, it would be impossible to regain the occupation of the property when they return. Once a rental, always a rental. Thus we would see these houses sitting empty and dusty while the homeless huddle shivering in the streets.

So who would benefit if the government's proposal to eliminate the 90-day notice option is adopted?

Tenants whose priorities and values that may not align with yours. 

Who would suffer?

All other housing occupants, both owner-occupiers and good tenants.

Wherever you live, however you live, regardless of your homeownership status, your life could easily be made miserable, your sleep ruined, and your family threatened because no landlord, public or private, would be able to control the behaviour of those who would now have unfettered occupation of their property.


This is a guest blog submission from APIA member Peter Lewis. Guest submissions are a way for APIA members to share their views and experiences with each other and do not necessarily reflect the views and position of the APIA.



Peter Lewis

Peter is the Vice President of both the Auckland Property Investors' Association and the New Zealand Property Investors' Federation. He is not an accountant. 


Recent Posts


asbestos Investor story heater parry v inglis covid-19 tenancy issues RTAA 2019 capital gain structure bankruptcy Q&A anti-social behaviour subdivision housing bubble privacy termination water bill early termination property management management kiwibuild twg report bond form business khh HHGA speculator cgt warren buffett smoke alarm bad tenant rent increase Investment tip Tribunal case study fixed-term tenancy short-term rental Gluckman Landlording property cycle Standards New Zealand Kris Pedersen Mortgages and Insurance will banking letting fee buying off the plan barfoot and thompson TCIT property value trespass meth contamination property apprentice quiet enjoyment Level 4 Editor's Choice buying rules worksafe property partners robert kiyosaki CoreLogic insulation LIM data security ird Guest blog ventilation nzpif relationship scotney williams warm up new zealand election 2017 unitary plan Must know heating cat rent house prices gluckman report rta reform HSWA Property (Relationships) Act finance debt enforcement landlord tax market advice How to principal and interest market rent auckland council tenancy tribunal trademe maintenance productivity recycling equity ask an expert investor mortgage opes partners first home buying boarding house clnz income rtaa2020 mindset investment strategy sale and purchas development Sponsored post tenancy services anz financial advisers act Jeff Bezos rental wof reserve bank CCC interest rates tenant ring-fencing HHS Must knows bond television building return beginner investor shower dome wealth creation equity damage inspection skill shortage ocr positive cash flow p lab shortland chartered accountants initio re agent sublease education holiday house DTI cash-flow yield winz renovation meth rta election2020 legal buyer's agent negotiation personal growth watercare rent arrears wins brightline Market report Holler interest only commerce commission trust airbnb government insurance property maintenance rental market auckland Question and answer lvr housing affordability RBNZ letting extractor fan Case study sale and purchase retaliatory notice minor dwelling


Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 

Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited