Government Heeds Landlords’ Call to Direct Credit Rents

The New Zealand Property Investors Federation today welcomed the announcement late last week by Nigel Bickle, National Manager Tenancy Services, that there was to be a change of policy regarding beneficiaries having their rent deducted at source.

Commenting on the announcement NZPIF President Mr Craig Paddon said: “Deducting rent payments before a benefit is received has always been possible using the “good cause” provisions of the Social Security Act however currently discretion rests with the Director General of Social Welfare as to whether or not a deduction may occur.

The Ministry has now significantly revised it’s policy position so that case managers will be able to work closely with clients and landlords to ensure that people are able to sustain their accommodation.”

“The NZPIF is hopeful that this policy change will go a long way to helping many families” Mr Paddon said. “Anecdotal evidence shows beneficiaries have trouble budgeting and having rent deducted before the benefit is received will hopefully ensure that the roof over the family is maintained.

Seeking orders for unpaid rent is by far the largest occupier of the Tenancy Tribunals time and this latest initiative could significantly reduce the number of such claims allowing cost reductions for the whole service.”

“Most tenant groups are in favour of the change and certainly the benefits outweigh any disadvantage” Mr Paddon said. Craig Paddon President N.Z.P.I.F

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