The Government needs to lift rent and evictions freezes aimed at protecting tenants during COVID-19, the Real Estate Institute says.
The Government introduced the emergency measures ahead of the New Zealand alert level 4 lockdown. The restrictions included a rent freeze for an initial period of six months - until September 25. Evictions were also banned - except for a limited number of circumstances - until at least June 25.
However, the Real Estate Institute is urging the Government to lift the restrictions now that the country is at level 1.
"With no active cases of COVID-19 in the country and 20 days in a row of no new cases, therefore, we would argue that the emergency legislation has served its purpose and should be ended immediately, or at the latest by 26 June which was the end of the initial 3-month period, chief execute Bindi Norwell said in a statement on Friday.
Norwell said the restrictions are now doing more harm than good and are causing financial distress for landlords.
"We've had examples from our members where tenants are seriously in arrears with rent and unlike landlords have the protections the emergency legislation has provided them, delays in securing a tribunal hearing are only exacerbating the situation," she said.
Norwell said the restrictions are an added burden on landlords who are already under emotional and financial strain.
"One recent example is a landlord selling their rental property due to financial hardship. The purchaser of the property required vacant settlement; however, the owner has been unable to provide this due to the emergency legislation.
"Now the owner is having to pay penalties in the region of $20,000 until they can provide a vacant property to the purchaser. The mortgage 'holiday' scheme does not cover these sorts of issues and the entire process is costing them financially and of course adding to their stress and emotional wellbeing."
She said she has also heard from a couple who have lost their jobs as a result of COVID and are unable to afford a rental property.
Norwell said they are now living in accommodation without heating or a shower because they aren't able to evict their tenants from their own rental property.
"We appreciate that it may have been difficult for the Government to have foreseen the extent of the negative impact of the emergency legislation on landlords and tenants when the legislation was first implemented.
"However, the consequences have now become clear in the past weeks, which is why REINZ is calling on the Government to bring these emergency provisions to an end immediately," she said.
A spokesperson for the Ministry of Housing and Urban Development told Newshub the Government is in the process of making a decision on whether to extend the restrictions.
"The government is aware of the importance of letting landlords and tenants know about the future of tenancy terminations, so they can begin making decisions and plans for the second half of the year as to their businesses and accommodation needs," the spokesperson said.
The spokesperson said the Government will decide whether to extend the rent increase freeze when it finishes in September.