Bonds may go by the board — claim

Press, 27 February 1986, Page 4

Bonds may go by the board — claim

Bonds may go by the board if the new tenancy bill is made law, according to the president of the Canterbury Property Investors’ Association, Mr Jim Glass.

Speaking at the association’s annual meeting last evening, Mr Glass criticised the bill, which proposes the’ setting up of a tribunal to manage bonds

instead of individual landlords.

“A consensus is emerging among the providers of rental homes in New Zealand that if they cannot hold the bond then a bond is of little value,” he said.

“Landlords are coming to the view ... that they would receive more rental if they had no bond and perhaps got a guarantee from a tenant’s employer or parents if they are in doubt about bona fides of a prospective tenant.” Mr Glass said about half the members at the association’s November meeting last year felt they would dispense with bonds if the bill became law. He felt sure that most members would do the same after considering the situation; “After all, it is really only in the last 10 years that bonds have been a normal practice. It seems to me that the higher rental achieved with no bond would more than, cover any losses incurred. The most you stand to . lose at present is twb weeks rental in case of default,” he said. Mr Glass said that when the South Australian Government introduced such a law, it created an accommodation crisis. In

Victoria, the Government had had to move that landlords provide tenants with accommodation on terms dictated by the state.

The association’s committee would make recommendations later in the year as to what action landlords should take towards the introduction of the bill.