Landlord tip 1.
If your proposed tenant is under 18 years of age they are a minor. They cannot make financial contracts and if they do they can later claim they did not understand the contract you signed with them. There are 2 main Acts in law which you should use as your guide. Minor’s Contracts Act 1969 and the Residential Tenancies Act 1986 .
Two possible solutions; Get ratification through the Tenancy Tribunal where a mediator will ratify that they understand, or alternatively have a parent or guardian as guarantor by adding their name to the Tenancy Agreement.
Landlord tip 2.
The goal when we have a vacancy is to obtain the best tenant in the shortest time. Write compelling adverts! The first word after location is very important (delightful, sunny, spacious etc). What does the tenant want? Put in as many benefits as possible. Find out what works and save it. When fielding calls this is where the selling process begins. Expand on your advert, record contact details and continue to take contacts until you have an unconditional tenancy agreement in place with paid rent and bond to back it up… no rent + no bond = no key!
Landlord tip 3.
Be careful with tenants who ask to bond transfer from their current tenancy. Landlords and Property managers should be aware that being presented with a Bond Transfer form, does not automatically mean that the funds referred to will be transferred to them. The bond may get used for arrears or repairs after the tenant has moved on meaning there is no bond to transfer. Check with the previous landlord to see if they’re going to release the bond. The concept of Bond transfers is to enable a Tenancy Bond to be transferred without the necessity or inconvenience of a refund followed by a relodgement. It also benefits MBIE bond centre with less admin and the money stays in the bond fund for longer periods. Here is a link to MBIE Bond Transfer Form
Landlord tip 4.
Section 56 of the RTA allows property managers to issue a 14 day notice to remedy any breach of the Tenancy agreement. This is best done as soon as humanly possible after the breach has occurred. If need be, follow it up with a Tribunal application. Keep in mind you can apply to the Tenancy Tribunal immediately after serving a 14 day notice, without waiting for the 14 day period to expire. This will shorten up the period that you have to wait to get a hearing. The reasoning is that if your tenant doesn’t remedy the breach in the 14 days then it is likely the rent, will then be in arrears by the minimum 21 calendar days that is required by the Tribunal to terminate the tenancy. Do your best to remain on talking terms while taking a tenant through the RTA processes. How about offering your tenant a lift to the hearing? It cuts out one excuse for them not being there.
14 day notices can be downloaded or printed straight from the TINZ Forms page. Available as both pdf or word doc.
Landlord tip 5.
Did you know 1 in 6 prospective tenants fail to pay their bills? Section 56 of the RTA allows property managers to issue a 14 day notice to remedy any breach of the Tenancy agreement. This is best done as soon as humanly possible after the breach has occurred. If need be, follow it up with a Tribunal application. Keep in mind you can apply to the Tenancy Tribunal immediately after serving a 14 day notice, without waiting for the 14 day period to expire. This will shorten up the period that you have to wait to get a hearing. The reasoning is that if your tenant doesn’t remedy the breach in the 14 days then it is likely the rent, will then be in arrears by the minimum 21 calendar days that is required by the Tribunal to terminate the tenancy. Do your best to remain on talking terms while taking a tenant through the RTA processes. How about offering your tenant a lift to the hearing? It cuts out one excuse for them not being there.
Maintenance requiring a licensed builder
From 1 March 2012 any ‘restricted building work’ needs to be done or supervised by a licensed building practitioner. It is an offence for anyone who is not licensed to carry out restricted building work.
Restricted building work is any design and construction work that is critical to the integrity of the building. This includes maintenance relating to load bearing work and external moisture management work.
Landlord tip 6.
Our sister company, CIA Debt Recovery Group Ltd, is saying not enough property managers are aware of the October 2010 amendments to the Residential Tenancy Act which allows their collection costs to be borne by tenants. In order to recover debt collection costs a clause needs to be written into the Tenancy Agreement.
Landlord tip 7.
It is up to a landlord to insure their rental property against any damage. That insurance will usually be for the benefit of the landlord only. A tenant should arrange insurance to protect their contents and liability for damage to the landlord’s property.
Most insurers require landlords to prove they have conducted a thorough tenancy selection process and have conducted regular property inspections before honouring damage claims. Check exactly what it is covered by your policy, and also check claim requirements. Some insurers offer special landlord insurance cover that includes issues to do with the tenancy (e.g., vacancy periods, damage by the tenant, etc). You may also choose to insure any chattels in the property that you own and that are listed in the tenancy agreement. Any damage to them will not be covered by the tenant’s contents insurance.