Owners handbook
A comprehensive guide for property owner’s and investors
Section 1 | Answers to commonly asked questions
Maximise your rent
Whilst we always strive to get the maximum rent possible, we must also keep in mind the current rental market to minimise vacancy periods.
HOW DO YOU DETERMINE THE BEST RENT FOR YOUR PROPERTY?
When recommending the optimum rental rate for a property, we consider the following factors:
EXTENSIVE ANALYSIS
We analyse the previous six months of bond's lodged to the MBIE. This gives us very accurate trends of rental averages according to suburb bedroom numbers and property type.
DEMAND
We consider the current demand for properties. This can be seasonal and is also influenced by factors such as public transport routes, school zones and local amenities.
AVAILABILITY
We look at properties currently available for rent, and consider their location and comparable features.
RENTED PROPERTIES
We compare your property with those we currently have rented.
WHAT IF I WANT A RENT AMOUNT THAT IS HIGHER?
Ultimately, you can place your property on the market at any rental amount you wish. However, please keep in mind that it is market demand that sets the rent, and if prospective tenants deem the amount being asked is too high, your property may stay vacant longer than necessary. You should also be aware that your annual rental return will be reduced by 2% for every week it is vacant.
HOW OFTEN SHOULD THE RENT BE REVIEWED?
We will review the rent against market conditions a minimum of twice per annum, when we need to secure a new tenant and at lease renewal time. If we believe a rental increase is appropriate, we will contact you for approval.
Getting the best tenant
Every prospective tenant must complete a comprehensive written application form and give us permission to verify the information provided.
HOW DO YOU CHECK AN APPLICANT?
Using the information provided, we confirm an applicant’s rental payment and tenancy history by contacting their current and a minimum of one previous landlord. We will also verify their employment details, and check both national and international databases to see if they have been lodged as a bad tenant or have an unsatisfactory credit history. Our sources of reference checking includes Tenancy Practice Services (TPS) and Tenancy Information New Zealand (T.I.N.Z).
In cases where an applicant doesn’t have a tenancy history, we confirm other information that may give us insight into their ability to maintain a tenancy. For example, checking for stable employment history and completing any other references checks available.
If we are unable to complete a satisfactory credit check process, it would generally be our advice to reject the application.
WHEN CAN YOU REJECT AN APPLICATION?
Legally we do not have to give a reason why an applicant was unsuccessful, and by industry practice we never give a reason.
WHO SELECTS THE APPLICANT FOR MY PROPERTY?
Your property manager will use our experience and the information we have collected to make the best recommendations of selection for your property. However, you have the final decision on whether to accept the prospective tenant’s application.
WHAT IF AN APPLICANT CONTACTS ME?
In the unlikely event a prospective tenant contacts you to discuss their application, we strongly advise that you do not discuss anything, and ask them to contact us directly.
DO GOODWINS GUARANTEE THE TENANT?
While our processes of management are proven to minimise the inherent risk of having a third party resident in your property; in reality, we can never guarantee a tenant. We will collect information on their past history and confirm their income arrangements. We take the utmost care at the time of tenant placement, and are diligent about daily rent records, regular inspections, and prompt attention to any tenant breach. We find this no-nonsense approach is respected by owners and tenants alike. Should you wish to remain closely involved in the process, we are happy to work with you.
Marketing your property
Once we have a signed Management Agreement authorising us to act on your behalf, we will actively market your property to attract quality tenants.
HOW WE WILL ADVERTISE YOUR PROPERTY?
WEBSITE LISTINGS
Most tenants start their rental property search online. To ensure maximum coverage, details and photos of your property will be listed on the following websites; goodwins.co.nz, trademe.co.nz and realestate.co.nz.
RENTAL LISTING BROCHURE
We will add a photo and details of your property to our office listing brochure.
OUR DATABASE
We will actively market your property to our up-todate database of prospective tenants.
CROSS REFERRAL
Your property will be actively cross-marketed by our team of Property and Business Development Managers.
HOW SHOULD THE PROPERTY BE PRESENTED?
First impressions count, so your rental property should be presented in the best manner possible in order to attract a first-rate tenant. In section three of this handbook you’ll find our helpful guide to preparing your rental property for tenants.
HOW CLEAN SHOULD THE PROPERTY BE WHEN A NEW TENANT MOVES IN?
To comply with legislative requirements, your rental property should be in a ‘reasonably clean’ condition. Please refer to our guide in section three, Preparing Your Property for Tenants, which has a helpful checklist and recommended levels of cleanliness.
As a general rule, tenants are expected to leave the property in the same standard they found it. However, in the case of a dispute, we can only legally enforce the tenant to return the property in a reasonably clean condition, this being the minimum legal obligation.
Pets at my property (if permitted)
If permission is granted to keep a pet at the property, we will record the details of the pet on the agreement, which is then signed by the tenant.
WHAT EXPECTATIONS WILL BE GIVEN TO THE TENANT REGARDING THEIR PET?
Your property manager will ensure the following criteria and obligations are met:
• No additional or change of pet may occupy the property without prior permission.
• A four week bond is insisted upon.
• The pet must be removed from the property if it becomes annoying or bothersome to neighbours. This will be after reasonable warning has been given in writing.
• The tenant must be responsible for any damage caused by their pet, and remove any rubbish or faeces deposited by the pet.
• On vacating the rental property, the carpets must be professionally cleaned, deodorised and flea treated.
Receiving rent
We strictly adhere to a zero tolerance policy towards rent arrears. Should a tenant get behind in their rent payments, we will promptly take action.
HOW ARE RENTS COLLECTED?
In the first instance, all tenants are required to make rental payments by automatic payment. Our offices will also accept EFTPOS payments. We do not accept payments in cash, cheque, or credit cards.
WHEN WILL I RECEIVE THE RENT?
You will recieve payment on the 1st and/or the 15th of the month. If the 1st or the 15th is a weekend or public holiday, you will receive it on the next business day.
WHAT HAPPENS IF MY TENANT DOES NOT PAY THE RENT?
Your property manager will take prompt action:
Two days behind: contact tenant to find out what has happened.
Four days behind: a 14 consecutive days notice issued.
Seven days behind: submit an application to the Tenancy Tribunal.
Should rent arrears occur, you will be immediately notified.
TERMINATION OF TENANCY FOR NON PAYMENT OF RENT
The actual time taken to achieve termination will vary according to the length of time the Tribunal takes to arrange a hearing. You will appreciate, this is out of our control, and in some cases can be up to two weeks.
Unfortunately the bond of 3-4 weeks rent will not always cover the shortfall, and landlord insurance becomes the only reasonable prospect of quick recovery. We recommend you consider Real Landlord Protection Insurance (rlinz.co.nz). This is critical not only in the case of a tenant defaulting on their rent, but also for recovering remedial works and minimising any resultant vacancy period. Please refer to page 15 for more information on Landlord Insurance.
Property inspections
Regular inspections of your rental property allows us to check it’s being kept in a clean, tidy and damage free condition.
WHAT HAPPENS AT THE BEGINNING OF A TENANCY?
We conduct a comprehensive inspection of your property when a tenant first moves in. We will carefully go over each area of the property including the lounge, kitchen, bathroom, bedrooms, front and back yards, and garage. We will make a detailed record of the condition and cleanliness of each area including digital photos, a brief description and details of any marks, scratches and dents.
HOW OFTEN WILL YOU INSPECT THE PROPERTY DURING THE TENANCY?
We prefer to inspect the property quarterly (every three months). This walk-through inspection consists of checking room-by-room that the tenant is keeping the property damage-free and reasonably clean and tidy. We will also note any maintenance issues and make recommendations to assist you in keeping the property in the best condition possible. We will send you a copy of the inspection report within 72 hours of its completion. If there are any immediate concerns, we will contact you the same day.
Many insurance policies require quarterly inspections as standard.
WHAT ABOUT WHEN THE TENANT VACATES THE PROPERTY?
When the tenant lets us know they will be vacating, we send them detailed information outlining our expectations of how the property needs to be presented. We also immediately notify you for instructions to re-rent.
Once the tenant has fully vacated and is ready for the final inspection, we compare the property to the inspection report completed at the time the tenant moved into the property. We carefully check through the report item-by-item, ensuring it has been left in the same condition, taking into account reasonable wear and tear for the time they have been in the property. This is a legislative requirement. We also ensure the property is reasonably clean and tidy, and read the water meter, if applicable.
Bond and tenancy agreements
The Residential Tenancies Act legally permits a bond of up to four weeks rent.
HOW MUCH BOND DO YOU TAKE FROM THE TENANT?
The Residential Tenancies Act permits a maximum bond of up to four weeks rent and this is increasingly our standard bond. Our minimum accepted bond is three weeks.
WHEN DO YOU PAY BACK THE BOND?
We only refund the tenant’s bond after the following has occurred:
• The tenant has fully vacated the property and keys have been returned.
• The property has been inspected and is satisfactory when compared with the commencement inspection report.
• All monies are paid including any outstanding rent, water or any other amount owed by the tenant.
WHAT DOES THE TENANCY AGREEMENT INCLUDE?
We will prepare a Tenancy Agreement covering the details of the tenancy, with comprehensive terms and conditions. Before we get the tenant to sign it, we go through the important expectations with them. For example, how they must pay their rent on time, where to pay their rent and what we do if they do not pay their rent. We discuss our repairs and maintenance policy, what happens in an emergency repair situation, how often inspections occur and what we look for.
We provide them with a copy of the Tenancy Agreement, explain where the bond is lodged and get them to sign the Bond Lodgement Form. We also give them a Tenant Kit which contains extensive information designed to support a trouble-free tenancy.
WHEN DO THEY GET KEYS AND POSSESSION OF THE PROPERTY?
We ensure all forms have been explained and signed, all bond monies are collected and the first payment of rent is received. We then conduct a commencement inspection, take photos and read the water meter. The tenant will receive a copy of the commencement inspection report, which is signed by both parties. Only then will we provide the tenant with keys and possession of the property.
Repairs and maintenance
Tenancy legislation sets expectations and responsibility on the landlord to maintain and repair the property. General repairs and maintenance is most often at the landlords expense.
WHAT IS CONSIDERED TO BE GENERAL WEAR AND TEAR?
General wear and tear that occurs from tenants just living in a property is expected, and legislation provides that it be allowed. A few extra marks and scuffs on the walls, some chips and scratches to doors and doorways will occur over time, along with the gradual wear of everything that is in the property.
The only time a tenant can be held responsible is if wear and tear is considered excessive for the time they have been in possession. For example, a newly painted property, which after two years, has severely marked walls requiring a repaint, may not be allowed as reasonable. If proved in a tribunal, this type of situation could result in the tenant paying for the painting to be re-done, minus any depreciation for the age of the paintwork.
WHAT IF THE TENANT IS AT FAULT?
If a tenant has caused damage to the property or appliances which is not the result of normal wear and tear, this will be charged to the tenant. Normally a tradesperson will let us know whether the repair is normal, or is influenced or caused by the tenant.
AFTER HOURS OR WEEKEND REPAIRS
At the start of the tenancy we explain to our tenants what does and does not constitute an emergency repair. This information is also on our website and included in regular newsletters. We provide an afterhours emergency contact number with a dedicated property manager, to service all tenant emergency calls outside of standard business hours.
WHO IS RESPONSIBLE FOR MAINTAINING THE LAWNS AND GARDENS?
Unless otherwise agreed, the tenant is responsible for maintaining the lawns and gardens to the same standard as at the start of the tenancy. Larger trees or hedges are the owners responsibility.
WHAT ABOUT CLEANING THE ROOF GUTTERS?
It is the landlord’s responsibility to ensure the roof gutters are cleared. We arrange annual roof cleans, at very competitive prices, for all clients unless explicitly asked not to do so.
Renewing the lease with my tenant
WHO DECIDES IF A FIXED TERM LEASE WILL BE RENEWED?
If required, we will contact you before the lease is due, and seek instruction on whether you wish to renew the lease. Once we have your approval, we will approach the tenant to have the lease renewed.
DO I HAVE TO GIVE A REASON IF I DON’T WANT TO RENEW?
If you do not wish the lease to be renewed, you are not obligated to give your tenant a reason. However, as a courtesy, we recommend doing so.
Notice required when my tenant is vacating
The amount of notice a tenant must give is dependent on the type of lease they have signed.
PERIODIC TENANCY
If a tenant on a periodic tenancy wishes to vacate the property, they are only required to give 21 days notice in writing.
FIXED TERM TENANCY
A tenant on a fixed term tenancy is required to give 21 days notice if the agreement was signed before 11th February 2021, or 28 days notice if the agreement was signed after 11th February 2021.
If tenants seek to break their lease, they are subject to paying rent until a new tenant is secured, or to the end of the lease, whichever occurs first. Tenants are made aware at the start of the tenancy that they are responsible for the marketing and credit check fees of a new tenant.
Breaches of tenancy
WHAT HAPPENS IF THE TENANT BREAKS ANY TENANCY CONDITIONS?
Our course of action will depend largely on what has occurred. If the breach is minor, approaching the tenant verbally or in writing may be appropriate. If the breach is serious, we will consult with you first to discuss what action to take.
Serious breaches of tenancy may involve using the property for illegal purposes or bringing in pets without prior permission. We will let you know whether we recommend serving a 90 day termination notice on the tenant or using more diplomatic means to rectify the breach.
Landlord insurance
We recommend you protect your rental property investment with landlord insurance.
WHY DO I NEED LANDLORD INSURANCE IF GOODWINS IS MY AGENT?
While Goodwins take all possible care, at no time can we guarantee your tenant’s performance at your property. The risk belongs to the owner of the property, and appropriately the owner should be insured for such a risk.
WHY DO I NEED LANDLORD INSURANCE IF I HAVE A GOOD TENANT?
It pays to be properly insured, even when you have a good tenant. If the tenant’s circumstances change, the tenancy may become unstable. This can result in rent owing and the property not being maintained.
WHAT DOES LANDLORD INSURANCE COVER?
It is important for you to know what your landlord insurance policy will and won’t cover. Please consult with your chosen insurance provider so that you are fully aware of the extent of your cover and any excesses that may be applicable in the event of a claim.
Goodwins are approved providers of REAL Landlord Protection Insurance. Please contact your property manager for more information.
Smoke alarms
WHAT TYPE OF SMOKE ALARM SHOULD BE FITTED?
9-Volt battery powered smoke alarms are acceptable, and should have a readily accessible test facility.
WHERE SHOULD SMOKE ALARMS BE PLACED?
Smoke alarms are compulsory in all rental properties, you should have smoke alarms on all escape routes, such as hallways, lobbies and stairwells, on all levels. On levels containing sleeping spaces, the alarms should be located in, or within three metres of every sleeping space, and be audible to sleeping occupants on the other side of closed doors.
SMOKE ALARM PROGRAM
Goodwins offer a full smoke alarm testing and maintenance solution. Please see your property manager for details.
Insulation
Good quality insulation is the single most effective measure for helping to keep the heat in during winter and out during summer.
INSULATION STATEMENTS REQUIRED IN TENANCY AGREEMENTS
From July 2016, new tenancy agreements must contain a signed Insulation Statement from the landlord. This must disclose whether insulation is fitted in the rental premises, the type, its location and condition. This is so tenants know what conditions to expect over winter and can make an informed decision.
A landlord who does not make a complete Insulation Statement or includes anything they know to be false or misleading, is committing an unlawful act and may be liable to pay a penalty of up to $500.
INSULATION COMPULSORY IN ALL RENTAL HOMES FROM 1 JULY 2019
Any new, replacement or top-up insulation installed in a rental home after 1 July 2016 must meet mandatory requirements that will apply from 1 July 2019. Ceiling and underfloor insulation must be installed, where it is reasonably practicable to do so. Wall insulation is not compulsory.
Some landlords may be eligible for subsidised insulation installed through the Warm Up New Zealand: Healthy Homes programme. Go to warmupnz. co.nz for more information. A number of councils around New Zealand also allow homeowners to add the cost of insulation to their rates and pay it back over approximately nine years.
A landlord who fails to comply with the insulation regulations is committing an unlawful act and may be liable for a penalty of up to $4,000.
Meth risk management
Methamphetamine poses a great threat to our economy, our families, our health and our real estate.
DO WE NEED TO TEST YOUR PROPERTY FOR METHAMPHETAMINE?
Unfortunately methamphetamine is a growing problem in New Zealand, and while it is not compulsory to test your rental property for meth, we highly recommend you do so.
HOW CAN WE PROTECT YOUR RENTAL PROPERTY AGAINST METH USERS?
MethSolutions help homebuyers, landlords and property investors to lower the risk of meth contamination. They offer services designed to detect the presence of methamphetamine in a property you own or are considering investing in. This includes baseline testing, standard screening assessment and proactive meth management. Visit methsolutions.co.nz or ask your property manager for more details.
IS THERE A WAY TO DETECT IF METH IS BEING MANUFACTURED IN YOUR RENTAL PROPERTY?
MethMinder is a monitoring system that can detect if your property is being used to manufacture methamphetamine. Practical and affordable, this device comes highly recommended. For more information see methminder.co.nz or speak to your property manager for a referral.
Heating
DO WE NEED TO PROVIDE HEATING AT YOUR RENTAL PROPERTY?
It is not necessary to provide heating in every room, but under Housing Improvement Regulations, landlords must provide a form of heating in any living room.
WHO IS RESPONSIBLE FOR MAINTAINING THE HEATING?
Landlords are responsible for the maintenance of heating and ventilation provided in the rental home. Landlords are also responsible for regularly servicing ducted heating and ventilation systems.
GAS HEATERS
It is recommended that landlords avoid unflued portable and built in gas (natural or LPG) heaters as they release moisture and pollutants inside during combustion, and can be a fire risk. This can contribute to making your property damp and mouldy. Landlords may choose to ban the use of these types of heaters in the tenancy agreement. Please contact your property manager for details on how to do this.
Light bulbs
DO I NEED TO PROVIDE FUNCTIONING LIGHT BULBS FOR THE TERM OF THE TENANCY?
Usually tenants will replace their own light bulbs, but strictly speaking it is a landlords cost. Under Section 45 of the Residential Tenancies Act, it says the landlord is responsible and liable for costs incurred in maintaining the property and must replace any items that may expire over time. This includes light bulbs, ovens, tap washers, water filters and spa pool pumps.
OUR RECOMMENDATION
Assess whether the light bulbs you have are easy to change. If so, provide your tenant with a dozen or so light bulbs for a year-long tenancy. This way you can avoid the extra cost of getting an electrician out to change them.
Pest control
Controlling ants, cockroaches, rodents and fleas on your rental property.
WHO IS RESPONSIBLE FOR PEST CONTROL?
Depending on the circumstances and level of infestation, the onus can often be on the landlord to provide adequate pest control services. This could be by providing the appropriate bait or employing the services of a pest control company. Your property manager will assess the situation at the time.
Costs incurred at your rental property
WHO PAYS FOR ELECTRICITY AND GAS CHARGES?
While consumption of electricity and gas are the tenant’s expense, if there are charges relating to the supply of these services, these are at the landlord’s cost.
For example, if a property has bottled gas supplied, the tenant pays for the gas in the bottles. However, the landlord is responsible for the charges related to the gas bottle rental, as this charge is associated with the supply of the gas.
WHO PAYS FOR WATER CHARGES?
The tenant is responsible for water usage charges and the landlord is responsible for daily line/supply charges.
HOW DO YOU CALCULATE WHAT WATER CHARGES THE TENANT HAS TO PAY?
We read the water meter at the start of the tenancy, and at the end of the tenancy, to allow us to calculate water usage between council issued notices. This is calculated using the Council cubic meter charge rates.
WHAT ABOUT COUNCIL AND SEWERAGE RATES, AND THE EMERGENCY SERVICES LEVY?
All these costs must be paid by the landlord, as specified by legislation.
Receiving your financial statements
You will receive monthly statements together with any tax invoices from tradespersons or other disbursements paid during that month on your behalf. We will also issue yearly financial statements, accounting for all monies we have handled and disbursed to you on your behalf, in accordance with legislative requirements.
WHEN WILL I RECEIVE MY STATEMENTS?
Your monthly statement will be issued on the same day as you rental payments are dispersed, being on the 1st and or 15th working day of every month. You will also receive your end of year statement in April.
An administration fee of $17.39 is applied to receive consolidated End Of Year income and expenditure reports.
WHAT IF I MISPLACE A STATEMENT?
Please contact us and we will issue you with a replacement monthly statement at no charge. However if you require a replacement end of year statement there will be a cost. Please refer to your management agreement schedule of fees for these charges.
Selling or moving back into your property
WHAT HAPPENS IF I WISH TO SELL MY PROPERTY?
You may sell your property at any time, however written notice must be given to the tenant of this intention.
Any fixed term lease in place is guaranteed to your tenant. This means if a person buys your property and they wish to occupy it, they must wait until the tenancy is finished, unless the tenant agrees otherwise. In the case of a periodic tenancy the tenant must be given 42 days notice to vacate, from the time of the sale contract becoming unconditional.
WHAT IF I WANT TO MOVE IN OR SOMEONE FROM MY FAMILY WANTS TO MOVE IN?
Any fixed term lease is guaranteed to the tenant unless they agree to move out. In the case of a periodic tenancy, 42 days notice is required. Please note that the Tribunal has held that a Family Trust requires 90 days notice.
CAN YOU HELP ME SELL MY PROPERTY?
Of course! Please contact your property manager and we will recommend a sales agent from one of our preferred Sales Agency Partnerships.
Section
2 | New Zealand tenancy legislation - how it affects you and your tenant
For your information, we have highlighted some portions of the Residential Tenancies Act 1986. These are common areas that are regularly misunderstood, or you may not be aware of.
SIGNIFICANT LANDLORD RIGHTS AND OBLIGATIONS
DISCRIMINATION TO BE AN UNLAWFUL ACT
Sec 12 (2) (a) Instruct any person to discriminate against any other person in contravention of the Human Rights Act 1993.
E.g. a person should not refuse to grant a tenancy to another on the grounds that it is intended that a child, race, religion etc should live on the premises.
RENT IN ADVANCE
Sec 23 (1) A Landlord shall not require the payment of any rent:
• More than two weeks in advance; or
• Before the expiry of the period for which rent has been paid already.
LANDLORD’S RESPONSIBILITIES
Sec 45 (1) The Landlord shall:
• Provide the premises in a reasonable state of cleanliness; and
• Provide and maintain the premises in a reasonable state of repair having regard to the age and character of the premises and the period during which the premises are likely to remain habitable and available for residential purposes; and
• Comply with all requirements in respect of buildings, health, and safety under any enactment so far as they apply to the premises.
ALLOWANCE FOR WEAR AND TEAR
Consideration must be given for the probable effect of reasonable wear and tear when the tenant vacates, as to whether the premises were in a reasonable condition when the tenant first took possession and the term of the tenancy.
LOCKS
Sec 46 (1) The Landlord shall provide and maintain such locks and other similar devices as are necessary to ensure that the premises are reasonably secure.
(2) Neither the landlord nor the tenant will alter or remove a lock or security device or add a lock or security device without the consent of the other.
LANDLORD RIGHT OF ENTRY
Sec 48 (1) The Landlord shall not enter the premises during the currency of the tenancy agreements except with the consent of the tenant.
(2) The Landlord may enter the premises:
(a) In any case of emergency; or
(b) For the purpose of inspecting the premises. At any time between 8am and 7pm on a day specified in a notice given to the tenant not less that 48 hours before the intended entry and not more frequently than once in any period of 4 weeks; or
(c) For the purpose of carrying out necessary repairs or maintenance of the premises at any time between 8am and 7pm of any day, after giving the tenant notice of not less than 24 hours before the intended entry.
(d) For the purpose of showing the premises to prospective tenants or to prospective purchasers. The Landlord may with the prior consent of the tenant (which shall not be unreasonably withheld).
BREAKING
TENANCY CONDITIONS - IF A TENANT BREAKS THEIR FIXED TERM TENANCY
Please note, if a tenant breaks their fixed term tenancy and vacates the property, they will be required to pay rent until a new tenant takes possession, or to the end of the tenancy, whichever occurs first, and cover the advertising and re-letting costs.
MITIGATION
OF DAMAGE OR LOSS
Sec 49 Where any party to a tenancy agreement breaches any of the provisions of the agreement or of this Act, the other party shall take all reasonable steps to limit the damage or loss arising from that breach.
TERMINATION BY NOTICE (IN WRITING)
Sec 51 (1) A Landlord may give notice to terminate the tenancy as follows:
• Where the Landlord requires the premises for occupation by the Landlord or by any member of the Landlord’s family, 42 days.
• Where the Landlord has agreed to sell the premises and is required by that agreement to yield the premises to the purchaser with vacant possession, 42 days.
• In any other case, 90 days.
SIGNIFICANT TENANT RIGHTS AND OBLIGATIONS
QUIET ENJOYMENT
Sec 38 (1) The tenant is entitled to quiet enjoyment of the premises without interruption by the Landlord or any person claiming under the landlord or with superior title to that of the Landlord; and
(2) The Landlord will not cause or permit an interference with the reasonable peace, comfort or privacy of the tenant in the tenant’s use of the premises; and
(3) Contravention of subsection (2) of this section in circumstances that amount to harassment of the tenant is hereby declared to be an unlawful act.
TENANT’S RESPONSIBILITIES
Sec 40 (1) The Tenant shall:
• Pay the rent on time.
• Use the premises principally for residential purpose.
• Keep the premises reasonably clean and reasonably tidy.
• Notify the Landlord as soon as possible of any damage to the premises or the need for any repairs.
Sec 40 (2) The Tenant shall not:
• Intentionally or carelessly damage or permit any other person to damage the premises.
• Use the premises or permit the premises to be used for any unlawful purpose.
• Disturb the neighbours or the Landlord’s other tenants.
TERMINATION BY NOTICE (IN WRITING)
Sec 51 (2) The minimum period of notice required to be given by a tenant to terminate a tenancy shall be 21 days in writing.
A Guide To Preparing Your Property For Tenants
The following guide is based on items which we expect a tenant to attend to on vacating a property. It is therefore appropriate that these items are in good condition at the commencement of the tenancy.
INSIDE THE PROPERTY
• Walls | Clean off any dirty marks, removable scuff marks, finger or food marks etc.
• Ceilings | Remove any cobwebs and fly dirt.
• Ceiling mould | Clean off, particularly in wet areas and sometimes in bedrooms.
• Light fittings | Clean off dust and remove any dead insects inside.
• Ceiling fans | Wipe fan blades and top of fittings to remove dust build up.
• Skirtings | Wipe down with a damp cloth.
• Doorways and doors | Wipe off finger marks and any other removable marks.
• Windows | Clean inside and out. Also clean the sills and runners of dust and any dead insects - a vacuum cleaner and paint brush can really help.
• Stoves | Clean stove top, control display, knobs, panels around knobs, any pull out or in-built drip trays, griller racks, trays and any inserts, oven racks, trays and oven bottom, walls and oven roof.
• Kitchen rangehood | Clean pull out filters and framework.
• Bathroom | Clean sink, mirror, cabinet, vanity unit and drawers, shower, screen doors, bath and wall tiles. Please ensure both the sink and the bath has a plug available.
• Toilet | Clean seat, bowl inside and also outside around the base.
• Laundry | Clean both the inside and outside of the tub, and underneath. Please ensure a plug is present.
• Heat pumps | Front vents and filters cleaned.
• Cupboards and drawers | Clean inside and out including the front and back of the doors and the door frames.
• Smoke alarms | Please ensure that new batteries are present and the unit is in working order.
• Curtains | Wash any washable curtains and netting. If other curtains are visibly dusty or dirty, consider dry cleaning or vacuum.
• Blinds | If you have venetian blinds, clean off the blind slats. Any other type of blinds should be able to be wiped down.
• Floors | Mop the floors ensuring corners and hard to get areas are also cleaned.
• Carpets | We require your carpets to be professionally cleaned prior to your new tenancy. Phone us for details of who we recommend.
• Chattels | If your property is partly or fully furnished please supply a full list of chattels.
OUTSIDE THE PROPERTY
• Lawns | Freshly mowed and edged. Best done a couple of days before the tenant takes possession.
• Gardens | Remove any weeds, rubbish and built up leaves etc.
• Rubbish | Remove any rubbish that you have placed at the property. Be sure to check behind sheds, shrubs and trees. This includes piled lawn clippings and compost.
• Paths and paving areas | Sweep. This is best done before a tenant takes possession.
• Oil spills | Check and clean carport and garage floors, paths and driveway. If you have used a barbeque, check for any grease spots and spillages etc.
• Cigarette butts | If there are cigarette butts lying around, please pick up and remove.
• Pet droppings | Please remove from gardens, lawns and any out of the way areas. Please dispose of them, do not bury them.
FURTHER RECOMMENDATIONS:
1. Ensure all windows have appropriate security stays installed.
2. Tenant awareness of the value in having a ventilation system and/ or insulation installed is common place. We encourage property owners to make modifications, that will satisfy this expectation.
Section 4 | Our written service standards and guarantee
We commit to you that we will perform the following duties when managing your property.
MARKETING YOUR PROPERTY FOR LEASE
• We will erect a ‘For Lease’ sign on your property within two working days of the advertising going live (if signs are permitted).
• We will place a listing for your property on all the Real Estate websites we subscribe to, and each listing will include at least five photos of the property.
• We will conduct an unlimited number of private viewings of your property and at least one Open for Inspection each week until the property is leased (subject to access provided to us by any current occupant).
• All property viewings will be carried out by one of our representatives (we do not give out keys to prospective tenants).
• We will update you on the status of your available property at least twice each week and provide you with a weekly marketing report until such time as the property is leased.
LEASING YOUR PROPERTY
• All information and references provided by tenancy applicants will be verified by us within two working days of receipt.
• All tenancy applicants will be screened on the national and international tenancy databases that we subscribe to.
• Unless you instruct otherwise, all potentially suitable tenancy applications will be referred to you for a decision.
• We will lease your property for the rental amount agreed between us and the property will not be leased for a lower
amount without your prior approval.
• Subject to the tenancy commencement date and the tenant’s availability, we will prepare the tenancy documentation within three working days of tenancy approval.
RENT COLLECTION
• We have a zero tolerance rent arrears policy.
• We will follow up all rent payments in accordance with our fully documented arrears process, and the requirements of the relevant legislation.
• Should termination of the tenancy be necessary, we will keep you informed throughout the legal process.
• You will be advised once the rent arrears have been paid by the tenant.
RENT MONIES
• All monies received by us will be banked into your nominated bank account to you within two working days of our Rent Statement close off date.
• We can provide you with twice monthly rent payments (mid-month and end of month) if required.
REPAIRS AND MAINTENANCE
• All non urgent repair requests from tenants will be attended to within five working days of receipt.
• We will not arrange any repairs to your property without your knowledge and approval (unless the repair is defined as urgent under the Residential Tenancies Act).
• We will attend to any urgent repair requests within four hours of receipt.
• All reasonable steps will be taken to obtain the best pricing for your repairs and maintenance.
• We will only use appropriately licensed and insured tradespeople for any repairs or maintenance work to your property.
• We will provide you with a copy of invoices for all work arranged on your behalf for the property.
TENANCY AGREEMENT RENEWALS
• We will review the tenancy agreement for your property 30 days prior to its expiry.
• Unless you instruct otherwise, we will offer the tenant a renewal of the tenancy agreement for the same period as the initial agreement at the same rent (or a higher rent if the market justifies it).
• You will be advised if the tenant does not want to renew their tenancy agreement.
PERIODIC INSPECTIONS
We will carry out at least four periodic inspections of your property each year and provide you with a detailed report each time.
TENANT VACATING
ON RECEIPT OF A TENANT VACATING NOTICE
WE WILL:
• advise you by phone, letter or email
• confirm details in writing to both you and the tenant
• list the property on our website and put the agreed advertising plan into effect
• prepare all necessary vacating documentation
• arrange access for viewings by prospective tenants
AFTER THE TENANT VACATES THE PROPERTY
WE WILL:
• process the tenant’s rental bond refund
• if deductions from the rental bond are considered necessary, full details will be provided to the tenant
• complete all necessary documentation to finalise the rental bond when all rent monies, water rates and any cleaning or repair invoices are fully paid.
PROPERTY DISBURSEMENTS AND STATEMENTS
• All agreed property disbursements will be paid on your behalf prior to the due date (subject to the availability of funds).
• Your Rent Statement will be sent to you within two working days of our monthly close off date.
• We will provide you with an accurate Annual Income and Expenditure Statement within 30 days of the end of the Financial Year.
GENERAL COMMUNICATION
• Our office hours are 8.30am – 5.30pm, Monday – Friday.
• We will respond to:
– telephone messages within 4 hours – email within 24 hours
• We will promptly advise you of any pertinent matters affecting your property or the tenancy.
COMPLAINTS HANDLING
• Tenant complaints received in writing (i.e. letter, email) will be acknowledged within two working days.
• All complaints will be formally recorded and responded to within two working days.
DOCUMENTATION
• We will provide all documentation in clear and concise English.
• We will ensure that all documentation is accurate and complete.
• All property condition reports will be comprehensively and accurately completed.
• Copies of all documents that we sign as an agent on your behalf will be forwarded to you (unless you instruct otherwise).
PERSONAL INFORMATION
• All personal information will be held in the strictest confidence and will not be released to a third party without written authorisation.
• All updates and corrections advised to us will be recorded in our system within one working day.
PROFESSIONAL STANDARDS
The highest standards of honesty, integrity and professional practice will be conducted in compliance with the Code of Conduct of the Real Estate Institute of New Zealand. (See Appendix)
OUR GUARANTEE TO YOU
• If we fail to meet any of these standards, and we are notified in writing and we do not rectify the matter within two business days, we will manage your property for three months management fee free.
• This Guarantee does not apply when:
– We are requested to carry out non-standard duties.
– Matters are outside our control. For example, a natural disaster or accident.
(Please see attached certificate)
DISCLAIMER
This handbook has been prepared by Goodwin Realty Ltd Licensed (REAA 2008) MREINZ as a guide for property owners and investors.
Our employees, agents and associates have made best efforts that the information and material contained in this handbook is correct at the time of printing but cannot guarantee or warrant the accuracy or currency of that information and material. To the maximum extent permitted by law, employees, agents and associates disclaim all responsibility for any loss or damage which any person may suffer from reliance on the information and material contained in this handbook, or, any opinion, conclusion or recommendation in the information and material whether the loss or damage is caused by any fault or negligence on the part of our employees, agents and associates or otherwise.
The information relating to the law in this handbook is intended only as a summary and general overview on matters of interest. It is not intended to be comprehensive nor does it constitute legal advice. Whilst our employees, agents and associates believe that such information is correct and current at the time of printing, we do not guarantee its accuracy or currency. Many factors unknown to us may affect the applicability of any statement or comment that we make to your particular circumstances and consequently you should seek appropriate legal advice from a qualified legal practitioner before acting or relying on any of the information contained in this handbook.
The information contained in the handbook is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.