Information for tenants including renting tips, obligations, bonds, insurance, mediation, vacating guidelines, and Covid-19 information.
Renting Tips
Market rent is what a landlord might reasonably expect to receive, and a willing tenant might reasonably expect to pay for the tenancy. It must be comparable to the rent charged for other properties of a similar type, size and location.
There are two main types of tenancies – a periodic tenancy and a fixed-term tenancy. It is important you know what you have to do in each kind of tenancy so you can choose the one that suits you best.
References are a great tool in providing character and professional profiles, as well as rental history from previous landlords or Property Managers.
Tenant Obligations and Responsibilities
It is very important a tenant understands their obligations in relation to a rental property. By not fulfilling their obligations it is possible that tenants may lose their bond.
Bonds
A tenancy bond is a payment of up to four weeks rent made to the landlord by tenants when they move into a property. The bond is held to cover any losses the landlord incurs if the tenant breaches any of the conditions in the Tenancy Agreement or general obligations of a tenant.
The landlord will collect the bond from the tenant, but must lodge it with The Department of Building and Housing Bond Centre within 23 working days, with a signed Bond Lodgement form (by both the landlord and tenant).
The bond is held by Tenancy Services until a Bond Refund form is filed (signed by both the landlord and tenant) by either the tenant or landlord. To ensure this part of the process progresses smoothly, it is important for the tenant and landlord to lodge any Change of Tenants or Change of Landlords during the period of the agreement.
If there is any damage to the property at the conclusion of the agreement, and the landlord and tenant agree as to the value of this then the bond is divided between the parties accordingly. However, if the parties are unable to agree on the value, then one of the parties can apply to the Tenancy Tribunal for mediation.
Insurance
We consider it imperative that landlords and tenants understand whose responsibility it is to have insurance to make sure that both parties are protected against loss. Below is a general guideline for landlords and tenants.
The most important factor to remember when selecting insurance is to inform your insurance company that the property is a rental property.
The tenant should ensure they have personal contents insurance for their belongings to ensure they are protected against loss.
The landlord must have insurance for the property, that is the physical buildings, section etc, against fire, storm, flood, Methamphetamine, damage from burglary etc if they want it protected against loss. For these types of policies, it is imperative that you advise the insurance company that the property is tenanted to ensure coverage. These policies often cover chattels, e.g. carpets and curtains, which is preferable however, this should be clearly defined and clarified with your chosen insurer.
It is also often recommended that landlords take some form of Property and Income Protection insurance. This is additional insurance taken out by a landlord to cover for:
Repairs and Maintenance
If something gets damaged in a rental property, or needs repairing, it’s important to know who’s responsible for fixing and paying for the problem.
Tenants must tell the property manager / landlord straight away if they are aware something needs to be repaired or maintained, no matter how it happened or who caused the damage.
Tenants need to tell the property manager / landlord if they know of any damage or need for repairs. If the tenant does not notify the property manager/landlord as soon as possible the landlord may be able to claim some of the costs of repairing the damage from the tenant if it gets worse. If a landlord or their property manager damages a tenant’s goods, the tenant can ask them to repair those goods or to pay the cost of replacement or repair.
If a tenant (or their invited guests) intentionally damages the landlord’s property, the tenant must tell the property manager / landlord. The landlord can ask the tenant to repair the damage or to pay the cost of replacement or repair.
If damage is caused by carelessness and the damage is covered by the landlord’s insurance, the tenant will not be liable for the cost of repairs, unless it was the result of an imprisonable offence. The landlord is responsible for the insurance excess costs and cannot pass these costs on to their tenants.Regardless of whether the landlord has insurance, tenants are not liable for damage caused by fire, flood, explosion, lightning, storm, earthquake or volcanic activity (fire, flood or explosion are not required to be catastrophic natural events), unless the damage was caused intentionally, was the result of an imprisonable offence or if the tenant or their invited guest caused the insurance money that would have been payable to the landlord to be irrecoverable.Landlords should check their insurance policy documents before discussing compensation for damage with the tenant, as their policy may cover the damage, providing it was not intentional or the result of an imprisonable offence.If the property manager/landlord and tenant cannot agree whether the tenant is liable for the damage, the landlord can apply to the Tenancy Tribunal for the matter to be resolved. Copies of relevant insurance policies, photos of the damage, and receipts or quotes for repair should be included to support the application.
Fair wear and tear refers to the gradual deterioration of things that are used regularly in a property when people live in it. A tenant is not responsible for normal fair wear and tear to the property or any chattels provided by the landlord when they use them normally. The tenant is responsible for any intentional or careless damage. An example of this would be where a stove element wears out from normal cooking. This is fair wear and tear. However, if the stove was being used to heat the kitchen and stopped working properly, this would not be considered normal use.
Examples of what is usually considered fair wear and tear are:
Examples of what is not normally considered fair wear and tear are:
For further information refer to the following link: tenancy.govt.nz/maintenance-and-inspections/regular-maintenance/.
Mediation
Mediation is usually the second step of dispute resolution - the first being talking to your landlord. If the first step is unsuccessful then either the landlord or tenant can apply to the tenancy tribunal for mediation.
Mediation is where an impartial person helps the two parties come to a solution for their problem.
The mediator will allow each person to explain to the other how they see the problem, help them discuss the possible ways to solve the problem and encourage them to choose the best solution for both of them.
A mediator is not able to make a decision for the parties, they can only help and encourage the parties to come to their own agreement.
The decision is put into a Mediated order which is binding on both parties.
Occasionally, the parties in mediation can not agree upon a decision. If this is the case, then the dispute will go to a Tenancy Tribunal hearing.
The tenancy tribunal is a special court set up to deal with unresolved problems between landlords and tenants which they have been unable to settle themselves.
A Tenancy Tribunal case normally only comes after mediation between the parties has been attempted and the parties have been unsuccessful at coming to a conclusion.
A tenancy adjudicator oversees the case and makes the decision, which is legally binding on both parties.
The adjudicator listens to both parties, any witnesses and evidence that either party feels is important and makes a decision based on this information and any provisions in the Residential Tenancies Act.
For more information visit the Tenancy Services website at www.tenancy.govt.nz.
Vacating Guidelines
Before you leave your rental property, have a look at our guidelines below. The better condition the property is in when you leave, the more likely it is you will get your full bond back.
We recommend that you refer to your ingoing Property Condition Report to ensure that the property has been left in a condition not less than that stated in the ingoing report.
Covid 19 Information
Click here for the latest information on Covid 19 www.tenancy.govt.nz.