How a professional property manager can protect your interests
Following the 2010 amendments to the Residential Tenancies Act 1986 there are more stringent requirements for landlords to maintain their properties to a reasonable standard, as well as altered tenancy terms to protect both landlords and tenants.
Professional property management is therefore more important than ever. You can incur serious fines if you fail to meet your legal responsibilities as a landlord. To protect the integrity of the service we offer, we are selective about the properties we agree to manage and insist that they are maintained to meet the required standards to comply with the law and to attract good tenants.
Some of the important 2010 changes to the Residential Tenancies Act 1986 include:
Landlords and tenants must always provide a physical street address as an address for service, but can now add an email address, PO Box number or a fax number as an alternate address for service.
If a landlord is going to be absent from New Zealand for more than 21 consecutive days, they must appoint a New Zealand-based agent, and notify their tenant and the Department of Building and Housing (if a bond is held) of the agents details.
A 10 working days notice (a notice to remedy a breach of the tenancy) has changed to a 14 consecutive days notice. This means the other party now has 14 consecutive days to fix the problem.
A fixed-term tenancy reverts to a periodic tenancy on the date the fixed-term tenancy ends, unless either the landlord or the tenant gives notice to the contrary between 21 and 90 days before the fixed-term tenancy expires. If there is a right in the tenancy agreement to renew or extend the tenancy and the tenant wishes to renew or extend the tenancy, the tenant must write to the landlord advising them at least 21 days before the the tenancy is due to end.
Tenancy agreements on unit title properties are now subject to body corporate rules.
New rules have been added for termination of a tenancy by notice:
* To issue a 42 days notice, the owner of the premises or a member of the owner’s family must require the premises as their principal place of residence.
* In the case of the tenant being given less than 90 days notice, the notice to terminate must set out the reasons for the termination
A number of unlawful acts have been added including:
* The tenant failing to quit the premises at the end of the tenancy, without reasonable excuse.
* The tenant using the premises for unlawful purposes.
* The tenant exceeding the maximum number of people who may reside of the property.
* The landlord failing to comply with their obligations regarding cleanliness, maintenance, relevant building, health and safety regulations.
* The landlord interfering with the supply of services, for example electricity.
Maximum fines for unlawful acts by landlords include:
Unlawful discrimination.$4000
Renting a property that falls below the standard of reasonably clean and tidy.$3000
Failing to maintain premises to a reasonable standard.$3000
Failing to comply with health and safety standards.$3000
Failing to supply adequate means of water storage.$3000
Intentionally refusing to complete a work order.$3000
Interfering with tenants’ peace and privacy.$2000
Seizing or disposing of tenants’ goods without following process.$2000
Landlord failing to appoint agent when going overseas for more than 21 days.$1000
Landlord asking for more an four weeks’ bond.$1000
Landlord requesting an unauthorised form of security.$1000
Landlord breaching duties on receipt of bond.$1000
Landlord requiring more than two weeks’ rent in advance.$1000
Landlord asking for rent before current rent as expired.$1000
Landlord interfering with tenants’ essential services.$1000
Landlord altering the locks without tenants’ consent.$1000
Landlord unlawfully entering tenancy premises.$1000
Landlord contracting to contravene or evade the provisions of the RTA.$1000
Landlord requiring tenant to pay in excess of market rent.$ 200
Landlord failing to provide receipts for payments.$ 200
