No-cause evictions have the potential to hurt renters—with little gain for good landlords

Housing security for New Zealand's 1.7 million renters could be threatened if the Residential Tenancies Amendment Bill becomes law.

Among some potentially positive changes in the amendment—such as the introduction of a pet bond—are rule changes that could cause real harm to renters. In particular, the proposed return of "no-cause" evictions is troubling.

Landlords will be able to give a 90-day termination notice to end any periodic tenancy, at any time, without giving a reason. Currently, landlords can evict someone for being more than three weeks late with rent, when the owner wants to live in the house themselves, or wants an employee to live on the property, among other grounds.

Landlords must provide the reason for the termination, and any notice can be disputed in the Tenancy Tribunal.

For renters, the proposed amendment could cause real problems. Submissions on the bill are open until July 3, so this is a good time to consider what this law will achieve and who it could potentially hurt.

Who loses with no-cause evictions?

Housing Minister Chris Bishop claimed last year that no-cause evictions were a "…progressive, pro-tenant move" requested by people who worked on the front line with the homeless (though subsequent reporting failed to find evidence supporting the claim).

It is hard to square how no-cause evictions could be pro-tenant. Renters will not know why they are being evicted, and they won't be able to dispute it. They will just have to pack up and leave.

Additionally, tenants will incur all the costs involved in moving, plus the time needed to view rentals and apply for new properties. If the tenant has children, there may be a change of schools and related uniform costs.

Tenants will bear the full mental, physical and financial toll of being forced to move against their will.

The rule changes also mean renters will be reluctant to complain about problems with the property. A recent survey of tenants by the Ministry of Housing and Urban Development found that 15% felt they had a bad relationship with their landlord.

These bad relationships were mainly caused by the dwelling not complying with health and fire regulations, issues with condensation, wet or cold homes, and a failure to repair or maintain the property.

How will these issues be addressed if tenants know complaining could result in their eviction? Tenants in Australia have reported eviction notices sometimes arrive after they've made complaints.

No-cause evictions have also become an election issue in the United Kingdom. Both the Conservative Party and Labour Party have pledged to abolish them if elected in July.