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.

Here are a few things that you should consider when looking for a property to rent:

• Is the property suitable for your needs?
• Do you need a property that is furnished?
• Do you need to be near public transport?
• Who is responsible for mowing the lawns and maintaining the gardens?
• Do you have pets and does the property allow pets?
• Do you have pets or children that require fenced yards?
• Do you need to be close to public transport?
• Are you available to inspect the property?
• When the property is available?
• If your application was successful, when could you move in?
• Have you provided as much information as possible with your application and do you have current references for the Landlord’s consideration?

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.

 

A tenant must:

• Pay the rent on time.
• Ensure the property is used for residential purposes for the majority of the time.
• Keep the property reasonably clean and tidy.
• Inform the landlord of any damage as soon as possible.
• Pay for the repair of any deliberate or careless damage caused by themselves or their visitors.
• Comply with all conditions in the Tenancy Agreement.
• At the end of the tenancy: remove their belongings, leave the property in a reasonable state of cleanliness, return keys or any like devices, and leave the chattels owned by the landlord.
• Allow the landlord reasonable access to the property.
• Pay for all electricity, gas, telephone and internet charges used by them. The tenant may also be required to cover the cost of water.
  
  

A tenant must not:

• Damage or allow others to damage the property, whether deliberately or carelessly.
• Use or allow others to use the property for any unlawful activities.
• Interfere with the neighbours peace, or comfort.
• Make any alteration to the property in any way without the landlords permission.
• Refuse the landlord entry when they are entitled to enter.
• Sublet without the permission of the landlord.
  
  

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.

 

Tenants

The tenant should ensure they have personal contents insurance for their belongings to ensure they are protected against loss.

 

Landlord

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:

• Loss of rents due to abandonment
• Loss of rents due to eviction
• Malicious damage/theft by tenants
• Rent recovering whilst malicious damage is being repaired

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 let the property manager / landlord know if something needs fixing

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.

What the tenant's not responsible for:

The tenant is not responsible for repairs or damage arising from burglaries, natural events (such as storms, floods and earthquakes), or fair wear and tear.

Who's responsible for fixing damage depends on who caused it:

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.

Intentional damage:

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.

Careless damage:

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.

If repairs are urgent:

If the state of disrepair is likely to cause injury to people or property, a tenant can have repair work done and ask the landlord to pay them for it. A landlord must also pay the tenant back for any urgent repair work the tenant had to have done, as long as the tenant made reasonable attempts to let the landlord know first.

Fair wear and tear:

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:

• flooring getting worn
• taps and washers in the kitchen, bathroom or laundry wearing out or leaking

Examples of what is not normally considered fair wear and tear are:

• burn marks or drink stains on the carpet
• drawing on wallpaper

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.

 

Tenancy Tribunal

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.

• Oven and elements, warmer drawer, racks and trays all cleaned.
  
  
• All service areas to be cleaned ie. kitchen, laundry, bathroom, toilet.
  
  
• Windows (interior), window sills, skirting boards, any fixed shelves all to be wiped down.
  
  
• Net curtains should be hand washed.
  
  
• All rubbish to be removed from property.
  
  
• Recycle bin, cleaned and left at property.
  
  
• Lawns and gardens to be cut and free of weeds.
  
  
• Replace any broken glass or mirrors.
  
  
• Ensure all light bulbs are working.
  
  
• Leave all picture hooks in walls.
  
  
• House to be flea bombed if a pet is in residence.
  
  
• Walls to be cleaned - superficial hand marks etc. removed.
  
  
• Cob webs removed from eves and internal walls.
  
  
• All garage and / or security remotes to be given back with the keys.
  
  
• Advise telephone and power companies of change of address

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.