In The Know - Property Management
15 May 2019
Find all the Property Management information on this page or go back to In The Know
Residential Tenancies (Healthy Homes Standards) Regulations 2019 signed off
On Monday 13 May 2019, it was announced by the Deputy Prime Minister that the Residential Tenancies (Healthy Homes Standards) Regulations 2019 had been signed off. The standards outline the minimum requirements for heating, insulation, ventilation, moisture and drainage and draught stopping in rental properties and will become law from 1 July 2019. The final Healthy Homes Standards will be released on Thursday, 16 May 2019.
Since the announcement, further clarification has been provided in that from 1 July 2020, landlords will be required to provide additional details in their new or renewed tenancy agreements on how their property meets the standards. This will enable tenants and landlords to be aware of the standards before compliance is required from 1 July 2021.
A quick recap
Timelines
- 1 July 2021: Private landlords will need to ensure that their rental properties comply with the standards within 90 days of any new or renewed tenancy from this date
- 1 July 2021: All boarding houses must comply with the standards from this date
- 1 July 2023: All Housing New Zealand houses and registered Community Housing Provider’s houses must comply with the standards from this date
- 1 July 2024: All rental homes must comply with the standards by this date.
Standards
- Rental homes will be required to have a heater that can heat the main living area to 18˚C
- Rental homes will be required to have ceiling and underfloor insulation that either meets the 2008 Building Code insulation standards, or (for existing insulation) has a minimum thickness of 120 mm
- Kitchens and bathrooms will be required to have extractor fans or rangehoods
- A ground moisture barrier must be installed if a property has an enclosed subfloor (if possible). Landlords will also be required to ensure that there is adequate drainage and guttering, downpipes and drains to prevent water entering the rental property
- Draughts must be blocked if they are making the home harder to heat.
WARNING! Photographing tenant's personal belongings can be illegal
When a rental property managed by you is going to be placed on the market, it is important that you, the landlord and the real estate agent (if there is one) are all on the same page.
Photos of the rental property for sale can be taken provided, that the tenant’s quiet enjoyment, reasonable peace, comfort and privacy are not interfered with.
The tenant has the right to refuse to allow any photographs taken of their personal belongings, for marketing purposes.
A tenant’s personal belongings may constitute as personal information under the Privacy Act 1993. Under the Act, personal information is information about an identifiable individual. The Act is concerned with the content of personal information as opposed to the specific form that the content is in; therefore, photos can contain personal information that can make an individual identifiable.
Photographing a tenant’s personal belongings without first obtaining their permission may, therefore, be a breach of the Act namely, Privacy Principle 11. For example, it is possible that a photograph of a tenant’s bedroom would reveal certain information about a tenant which would be considered personal information under the Act.
It is, therefore, prudent to obtain written permission from the tenant to take photographs of the property including their personal belongings.
To avoid breaching the Act, REINZ recommends that agencies update their tenancy agreements with a clause stating that the tenant expressly authorises the property manager/landlord/real estate agent to take photographs of the property with the tenant’s belongings in place if the landlord decides to market the property.
Case Update: Requesting "key money" is illegal
The tenant in this case claimed that the landlord being a Property Management company, requested that the tenant pay ‘key money’ to them.
Law:
Landlords are prohibited from asking for key money under section 17 of the Residential Tenancies Act 1986 (Act). If the landlord breaches this obligation intentionally, it will be considered an unlawful act which will enable the Tenancy Tribunal to award exemplary damages of up to $1,000.00.
Key money is defined as any sum of money demanded by way of fine, premium, foregift, reimbursement of expenses, administration charges, or otherwise as consideration for the grant, continuance, variation, extension, or renewal of a tenancy agreement, or for consent to the surrender or disposition of the tenant’s interest under a tenancy agreement or to a subletting by the tenant; but does not include any sum payable or paid by way of rent or bond.
Facts:
The tenant moved into a property that was tenanted by four tenants. The tenancy was periodic. Two tenants had left and the remainder two tenants wanted to record the new tenants on the tenancy agreement. They were unaware that the signed tenancy agreement ended once a tenant gave notice. The tenant moved into the property and began paying rent and requested the company to list him on the tenancy agreement. The company agreed to record his name however, requested that he pay $250.00 for a credit check.
The tenant informed the company that they could not request key money however, the company did not change their position.
Finding:
The Tribunal found that the company had intentionally committed an unlawful act. They were a large company who should have been aware of unlawful acts and did not correct their position when informed by the tenant that they were charging key money which was not permitted under the Act.
The Tribunal ordered the company to refrain from charging key money and to check whether they had charged any other tenants key money and to refund them accordingly in relation to section 77(m) of the Act.
The tenant was wholly successful in his claim.
You can find the full decision here.
Tip:
The lesson landlords and Property Managers can take from this case is that they must ensure they are not participating in any unlawful acts as stipulated in the Act.
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.
REINZ Residential Rental Review - April 2019
The April REINZ Residential Rental Review is now available here.
