In The Know - Property Management
8 May 2019
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Properties marked for future development and insulation requirements
There has been some confusion over properties that will be demolished or substantially renovated in coming months, and their insulation requirements.
The exception to having to insulate applies for the 12-month period from the start of the tenancy if, before it started, the landlord had applied for and obtained the necessary resource or building consents.
For an existing tenancy the building or resource consent must be obtained before 1 July 2019. Under the regulations, the transitional provisions state that for an existing tenancy, any references to ‘commencement of the tenancy’ mean 1 July 2019.
The exception no longer applies at the end of the 12-month period. If the property is still tenanted, then the landlord would need to make sure the property complies with the insulation requirements.
In very simple terms, if you have an existing tenancy and the landlord has obtained the resource/building consent before 1 July 2019, they are not required to upgrade the insulation during the 12-month period 1 July 2019 – 1 July 2020.
Key points:
- the building or resource consent must have been applied for and obtained pre-1 July 2019
- the exception no longer applies after the 12-month period.
It is recommended that tenants living in existing tenancies that fall under this exemption are fully informed.
Not all scenarios with developments will be the same. Property managers need to keep in mind that the Tenancy Tribunal will review each situation on a case by case basis.
Case Update: Advertising rentals as an AirBnB
This case involved the tenants advertising and renting out the rental property on AirBnB, which was a direct breach of the tenancy agreement.
The landlord being the property management company, applied to the Tenancy Tribunal to terminate the fixed term tenancy early.
The tenants then gave 21 days’ notice to end the tenancy after the application had been filed and the company accepted this. The company preferred to have the tenancy end as soon as possible however, it was later agreed that the tenancy would come to an end on 12 April 2019.
The Tenancy Tribunal granted possession to the company on 12 April. No determination was made on whether or not the tenancy was used unlawfully as an AirBnB as both parties agreed to terminate the tenancy.
The company has expressed that they wish to file an application for an account of profits and for exemplary damages.
You can find the full decision here.
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 and Skills are excited to offer the Residential Property Management Qualification
REINZ and Skills are working together to offer a programme that will arm you with the knowledge, tools, tips and tricks of the trade to help you become a successful property manager with a great reputation.
Sign up before 31 May 2019 and pay only $1,499 +GST per member, instead of $1,599 +GST.
Check out the flyer for more information.
