Premises become uninhabitable - what happens to the tenants?

When a property is destroyed or so seriously damaged it is deemed uninhabitable, what are the landlord’s legal obligations to the tenants? Many landlords are unsure if they are liable to provide alternative accommodation or not. Many tenants assume the owner will have to pay for or find other temporary accommodation. This is not the case and tenants should be aware there is no obligation for an owner to provide alternative accommodation should the property be deemed uninhabitable. If a tenant has their own contents insurance this may cover temporary accommodation costs, however they should check the wording of the policy carefully.

While a landlord does not have to provide alternative accommodation, they may be able to assist the tenant in finding suitable accommodation to move in to. This can be a particularly stressful time for all parties involved, as property managers will need to act with professionalism and care at all times.

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Case Update: A total meth disaster

The landlord in this case claimed that the tenant had used the property for an unlawful purpose pertaining to methamphetamine. The landlord also claimed that the tenant had caused intentional damage to the property by smoking or manufacturing methamphetamine and sought compensation in relation to cleaning, remediation and decontamination.

The tenancy began in May 2016. The tenant lived with her young son in the property. In early 2018, the landlord received a complaint from a neighbour complaining that people were entering the property at all “hours of the day and night.”

The landlord decided to act on this complaint and installed a security camera down the drive as they lived in the property in front of the rental property. The landlord found that many people were coming and going from the property at odd hours of the night.

In June 2018, the tenant fell behind in her rent and the landlord decided it was best to raise this concern along with concerns about:

• Visitors smoking at the property
• Damage caused by a van
• Other people living at the premises
• Leaving lights on all night which were not appreciated by the neighbours.

The tenant then gave the landlord notice.

Methamphetamine

The landlord also decided to show the Police the security footage and the Police informed the landlord that some of the people viewed in the footage were known to Police and methamphetamine connections.

The tenancy ended on 15 September 2018.

The landlord tested the property for methamphetamine on 18 September 2018 and the test showed that all areas tested positive and that the kitchen was found to be at 99.98 μg per 100 cm2 and bedroom 2 was found to be at a level 58.51 μg per 100 cm2. The test also showed the presence of precursor drugs such as Amphetamine and Pseudoephedrine.

The Tribunal decided to adopt the Gluckman Report suggested safe level of contamination being below 15 μg per 100 cm2.

The Gluckman report also states that levels higher than 30 μg per 100 cm2 are indicative of manufacture of methamphetamine.

The kitchen and bedroom 2 exceeded the Gluckman Report and the property required decontamination.

Causation

The Tenancy Tribunal found that the tenant had caused the contamination.

The tenant had also reported a gang member who was smoking meth at her property to the Police (corroborating evidence). The landlord provided evidence of a burnt imprint in the shape of a pipe that was found on shelving in the kitchen. The smoke alarms and some light bulbs had been missing (common in methamphetamine use).

Was the tenant responsible for the damage to the premises?

The Tribunal found that the tenant was responsible for the intentional damage given the excessively high readings, precursor drugs, nature of people staying and visiting the property and likelihood of manufacture.

The tenant was ordered to pay the landlord $11,048.03.

Click here for the decision.

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Webinars for Property Management

Are you looking for content to keep your property managers up to date: REINZ has developed a series of webinars that you can use to keep yourself informed and up to date with various topics.

Click here to see the webinar packages, including "Property management essentials".

If you have any questions, ask the Education Team

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The New Zealand Certificate in Property Management

Property managers, are you looking to upskill or add a mark of quality to your practical experience?

Earlier this year REINZ and Skills launched The New Zealand Certificate in Property Management. This is a level 4 qualification that can be undertaken online over 7-12 months, at your own pace. The programme is very user friendly and those who have not studied for some time should not be afraid to register.

In addition to the online component, REINZ also offer four face to face workshops, that will be recorded and sent to you if you are unable to attend.

The online course includes four modules. These modules cover off various aspects of the day to day tasks and legal requirements a Property Manager will have to deal with.

- Module 1 Legal and Theoretical Knowledge
- Module 2 Establishing residential tenancy management
- Module 3 Establishing a residential tenancy
- Module 4 Maintaining residential tenancies

REINZ has seen a steady increase each month with property managers from across New Zealand now enrolling in this course. This is an opportunity to set you apart from the competition.

If you would like more information, please email the REINZ Education Director Kirstin Brown.

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SAVE THE DATE - 2020 REINZ Residential Property Management Conference

Friday 7 August, 2020

Auckland

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Stuck on something? Check out our information sheets!

Click here for our Information Sheets on:

• Insulation
• Healthy Homes Standards
• Privacy Act Guidance
• Asbestos
• Mould and Dampness in rental properties

Keep an eye out for the following Information Sheet that will be coming soon:

• Residential Tenancies Amendment Act 2019

Any questions/suggestions you have, feel free to contact advisory@reinz.co.nz

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Finding the right tenant - what should I not collect?