As a landlord, finding reliable tenants to take care of your property is a high priority. Good tenants will look after your property and will hopefully care for your house as if it were their own. Finding great tenants is important, but it’s not always easy. To make an informed decision on which of the applicants is the best suited for your property, it is essential to gather information about each candidate. 

However, there are several regulations to be aware of before requesting any information, and there are several pieces of information you’re simply not allowed to gather. Discriminating against someone could get you into serious trouble, so it’s crucial that you are respectful and fair when screening tenants, and this includes being fair in the questions you ask and the information you gather or request.

In this article, we explain which privacy laws landlords need to follow, including the information you can collect from tenants and the information you cannot legally request. 

The Privacy Act 2020

Before you begin collecting personal information, you need to be aware of your responsibilities under the Privacy Act 2020. This Act outlines the guidelines for collecting, storing, using, disclosing, and providing access to personal information. You will be holding on to very sensitive personal information about candidates and tenants alike, and you must obey all legislation pertaining to the collection and storage of that information.

As a landlord, you must comply with these rules and ensure that you only collect the minimum amount of personal information required to make your decision.

The Privacy Act is in place to protect New Zealanders from discrimination, identity theft, and breaches of their privacy and rights. As experienced real estate professionals, we’re here to help you navigate these regulations and find the right tenants for your property while complying with all relevant legislation.

What to ask a potential tenant

When people apply for your advertised property, you can only ask them for the following information:

• Their name and contact information.
• Proof of identity and whether they are over 18 years of age.
• The number of people who will be living at the property and the names of those that will not be on the tenancy agreement.
• Contact details for landlord and non-landlord references.
• Consent to contact referees.
• Consent for a credit report and a criminal record check (only allowed if they are in negotiation with you over an offer to rent the property).
• Do they own any pets?
• Do they smoke?
• Do they have the legal right to remain in NZ for the term of the tenancy if it is a fixed-term tenancy?

From this information, you can form a shortlist of preferred applicants and can ask further questions to confirm that these applicants are likely to be suitable tenants:

• Request date of birth and ID documents needed to carry out the credit and criminal record checks.
• Request only one form of evidence of their ability to pay rent i.e a payslip or letter from WINZ. You cannot ask for detailed bank statements so that you can see how they spend their money.

You will want to gather such information on an applicant to ensure they match the information provided by them.

When asking for any of the above details, you must tell applicants why you need them. That includes how you will use the information, who will have access to it, and how it will be recorded.  

What not to ask a tenant

There are certain pieces of information that you are not allowed to ask for as a landlord in New Zealand. Under the tenancy law, discrimination is illegal when it breaches the Human Rights Act. Specifically, you cannot ask a potential tenant for the following information: 

1. Gender or sexual identityLandlords cannot legally ask for a tenant’s gender identity or sexual orientation. This includes whether they identify as male, female, transgender, non-binary, or any other gender. Sexual orientation is also not something you can enquire about as it is irrelevant to their application.
   
2. Religious or ethical beliefsReligion refers to any system of belief in a god or gods and the relevant activities that are associated with it. In New Zealand, everybody has the right to religious freedom, without it affecting their right to a home. 
   
3. Political opinionThe political status of a tenant should not be a factor in your decision. This includes opinions about politics in New Zealand as well as internationally.  
   
4. Ethnicity or nationalityLandlords cannot ask about the ethnic identity or nationality of a potential tenant. This includes any cultural affiliation, race, ancestry, nationality, or citizenship. 
   
5. Physical or mental disability It is illegal to discriminate against a rental applicant based on any disability, including a physical, mental, intellectual or sensory impairment. If you want to make your rental property more accessible for disabled tenants, ask our experts for advice.
   
6. AgeIt is illegal for landlords to discriminate against someone because of their age. However, note that if the tenant is a minor, the agreement can only be enforced if it is ratified by the Tenancy Tribunal and the tenant applies within ten working days of their 18th birthday. Alternatively, if they are married or civilly united, they are released from the obligations under the agreement. This can be a complicated process, so speak to our property managers first. 
   
7. Employment status While you are allowed to ask for proof of income, you cannot ask a potential tenant about their current employment status. This includes if they are unemployed or receiving a benefit. If you find out a tenant is unemployed after the agreement is signed, you are not allowed to change the agreement. 
   
8. Marital and family status The relationship status and family demographics of your tenant should not come into your decision. This includes asking about any dependents the tenant has. 

In society and New Zealand in particular, we like to be naturally curious about people and are inquisitive about their lives. It’s important to remember that a deep dive into their relationships, beliefs and history could be misinterpreted as you vet them based on personal attributes that are best kept private. While you may never intend to use that information against someone, ask yourself whether the candidate may look back on that conversation and wonder whether anything they said resulted in them being rejected as an applicant.

How to manage tenant information

Once you have collected information about a prospective tenant, you are obligated to manage it correctly and only use it for the intended purpose. 

Firstly, tenant records should never be shared without consent. Secondly, if a tenant requests to see their records, you must show them. This is the tenant’s legal right but it also helps to promote transparency and build trust. 

• Keep it secure.
• Collect only what you need.
• Only share a tenant’s information with their consent.
• Disclose records with the tenant as requested.
• Make corrections to records as requested by the tenant.

Our tenant screening process

At McDonald Real Estate, we use a thorough screening process to rent our properties to the most suitable tenants. This allows us to identify anything we need to know about a tenant without breaching privacy regulations. Along with the information we are allowed to collect, we always meet with potential tenants at a property viewing where we can chat with them and get a feel of who they are to determine if they would be reliable and respectful tenants. Working with an experienced property manager makes this process much easier for you, giving you access to their expertise and resources. 

Are you looking for a reliable tenant with all the right credentials? Our team can help. We have an established network of local tenants already in our database and can help you find the right one for your rental property. Simply reach out for advice or a free appraisal today.