In The Know - Property Management
3 July 2019
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Healthy Homes - Statement of Intent
The Healthy Homes Statement of Intent must now be used in all new tenancies as of 1 July 2019.
Clearing up confusion around Insulation Statements
Feedback from our Property Management sector has been that there is some confusion around the requirements on Insulation Statements. We hope that the below offers clarification on the requirement.
All new tenancy agreements signed on or after 1 July 2016, must include an Insulation Statement. There is no requirement for Insulation Statements to accompany pre-2016 tenancies although, these properties must now meet the required standard, as of 1 July 2019.
For further information on Insulation Statements please refer to MBIE's Tenancy website.
Accessing RentalSmarts
We have received great feedback from those of you already using RentalSmarts, one thing to note is access permissions. To subscribe and use RentalSmarts you must be a REINZ member and have a membership type of Residential Property Manager in the REINZ system.
If you are a property manager and don’t have access please get your principal or manager to send written confirmation to statistics@reinz.co.nz and we can amend that for you.
Alternatively, if you wish to become a REINZ member please call our membership team on 09 356 1755 or 0800 473 469 or send them an email at membership@reinz.co.nz for more information.
Case Update: Water leaks and dampness
The tenant in this case claimed compensation and exemplary damages for the following issues, leaks at the property, dampness and mould, failure to remove asbestos boards from the old garage, and reimbursement of water and power.
Water leak:
The tenant had reported problems relating to a number of leaks under the house and in the walls of the property. The tenant communicated these issues mostly with the owner of the property as opposed to the property manager.
On 19 May 2017, the tenant reported a leak in the bathroom by text to the owner in the black polybute. The tenant described to the Tribunal that the water came out of the wall like a sprout and flooded the bathroom and the hallway carpet. The wet carpet was however, not communicated to the owner. The owner arranged for the leak to be dealt with by a building and construction company.
The Tribunal accepted that the water had reached the carpeted hallway and stated that the owner had not arranged for a dehumidifier, fans or heaters to dry the carpet. The owner also failed to inspect the wet carpets and the tenant dried the floors with towels instead. The tenant claimed that the carpet stayed damp and smelly for the remainder of the tenancy.
The Tribunal was not satisfied that the owner acted in a responsible manner in relation to the major leak and should have either inspected the premises himself or requested the property manager to inspect it. The Tribunal, however, did accept that the owner was not informed about the wet carpet. The tenant stated that the building and construction company failed to inform the owner of the extent of the problem.
Given the above, the Tribunal found that the owner failed to maintain the property in a reasonable state of repair under section 45 of the Act by failing to notify the property manager of the serious leak, failing to assist the tenant with floor recovery and failing to inspect the premises after the leak. The Tribunal also found that the wet carpet most likely contributed to the mould and dampness of the property.
Compensation was awarded. The Tribunal decided against exemplary damages given the owner acted quickly however, failed to check whether flood recovery action was required.
Asbestos:
The tenant claimed that the building and construction company warned her that the garage walls contained asbestos. This was strongly denied by the company. There was conflicting evidence at the hearing and the Tribunal stated that the tenant had the onus of establishing the claim on a balance of probabilities which they failed to do.
Door Damage:
The landlord claimed that the tenant damaged two internal doors. The Tribunal found that the damage was not intentional therefore, the claim was dismissed.
Cleaning:
The Tribunal found that the property was not reasonably clean and tidy at the end of the tenancy and therefore, awarded cleaning costs to the landlord.
You can find the full decision here.
Tips:
1. A key lesson from this case is that landlords and property managers should have open communication with one another.
2. Another key lesson is that routine inspections should be carried out and when problems arise, physical inspection of the property should be conducted.
2019 RPM Conference - Thriving in Changing Times
Friday 2 August, Hilton Hotel Auckland
This not-to-be missed Property Management Conference is hosted by Simon McKinney and filled with a great line-up of speakers such as Lisa O’Neill, Dr Annette Beautrais, Steve Watson, Lisa Gerrard and Sheree Nicholas.
Breakout sessions will be available for Property Managers and Business Owners.
Registration includes Cocktail Networking Drinks where the winner of the ‘2019 Recognition of Contribution to the Property Management Industry’ will be announced.
REINZ Residential Rental Review - May 2019
The May REINZ Residential Rental Review is now available here.
