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In The Know

16 January 2019

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Happy New Year

I hope you had a wonderful break with family and friends and are returning to the office feeling refreshed and ready for 2019.

The team at REINZ is looking forward to everything that 2019 will hold including some exciting developments planned for this year to add value to you and your business.

Many thanks,
Bindi Norwell

Case Update: No separate power meter and failure to maintain premises

This case involved claims by both the tenant and landlord.

Power and Water
The tenant claimed that there was no separate power meter for the premises.
In accordance with Section 39(3) of the Residential Tenancies Act 1986 (RTA), a landlord can only seek reimbursement from a tenant if the utility charges can be exclusively attributed to the tenant’s occupation of the premises.
There was only one-meter board for the entire property and the tenant had agreed to pay $30 a week towards the power. Therefore, the tenant’s actual power usage could not be measured and the amount she was paying was not an accurate reflection of her power use. This claim was successful.
The tenant also claimed that she never had access to enough hot water. The Tribunal stated that the tenant was adequately compensated by way of the above successful claim.

Failure to maintain the premises
The tenant claimed that the toilet was cold and damp and that there was rot on the shower step. She stated that there was mildew in the bathroom and as a result, her health had suffered.
The previous lino had been removed and not replaced in the toilet, bathroom and kitchen area. The landlord stated that they had contractors to prepare the floors however, they could not enter the premises as the tenant did not answer their phone.
The RTA sets out various ways that notices can be delivered and states that a landlord is allowed to enter into a premise to carry out maintenance as long as they provide adequate notice. A tenant is also not required to be at the premises.
The Tribunal stated that the landlord could have delivered the notice to the tenant or left at the premises specifying when the contractors would enter.
Given the above, the Tribunal found that the failure to lay the lino was a failure to maintain however, the claim as to the premise being cold and damp was unsuccessful.

Toilet and toilet seat
The tenant also claimed that the toilet base was cracked, and the toilet seat was scratched/marked. The landlord had agreed that a new toilet seat was to be provided however, claimed that the tenant would not let them enter to change the seat.
As stated above, there are various ways notice can be given therefore, the landlord had breached their duty. The Tribunal however, dismissed the claim pertaining to the toilet being cracked.

Heater
The tenant claimed that no heater was provided with the tenancy. In accordance with the Housing Improvement Regulations 1947, every living area is required to have a form of heating.
No heater was in fact provided and this claim was successful.

It should be noted that the tenant claimed that rats and mice were entering the premises and that there was no stove however, these claims were not established.

Rent Arrears
The landlord claimed rental arrears and the sum was awarded.

Bond
The bond was returned to the tenant

You can find the full decision here.


Does a Tenancy Agreement exist between the parties?

The issue in this case was whether a tenancy agreement existed between the parties.

On 14 February 2018, an oral agreement had been entered into by the landlord, Ms. P and the tenants Mr. M and his wife. The agreement related to renovation work that Mr. M agreed to carry out at the premises in exchange for a tenancy at a reduced rental for a period of two years upon completion of the work. The agreed completion date was 20 March 2018.

A written agreement was prepared by Mr. M which covered certain elements such as the scope of work, supply of materials, supply of labour, reduced rental, start date of the tenancy, bond and exterior. This agreement had only been signed by Mr. M. The renovations took longer than expected and on 18 June 2018, Ms. P’s partner, Mr. S ended the agreement between the parties.

Mr. M and his wife claimed that an oral tenancy agreement had been created between the parties and this was confirmed by a written tenancy agreement. Compensation was also claimed. Ms. P claimed that she only intended to be bound by a tenancy agreement once the work had been completed.

Jurisdiction: Ms. P claimed that the Tenancy Tribunal was not the appropriate forum for this dispute. The jurisdiction of the Tribunal pertains to hearing disputes between landlords and tenants concerning ‘residential premises.’ This would entail a tenant intending to occupy the premises as a place of residence and would not cover premises that are let mainly for purposes other than residential. The Tribunal stated that it had jurisdiction to consider an oral agreement in accordance with section 13C of the Act.

Finding: The Tribunal found that the premises had been let primarily for a commercial purpose and the intended occupation was incidental to this. The main purpose was for Mr. M to carry out the renovation work and only upon completion of the work, would there be an agreed tenancy. The Tribunal noted that there was no residential tenancy agreement form, the written agreement was not headed as a tenancy agreement and Mr. M and his wife resided at a separate premise. The Tribunal further stated that Mr. M’s claim to compensation was a commercial contract dispute therefore, the Tribunal did not have jurisdiction to determine this matter however, asserted that a binding tenancy agreement had not been formed.

You can find the full decision here.


REINZ and Real-iQ deliver the NZ Certificate in Residential Property Management

Lift your professionalism and standards and prepare yourself now for potential industry regulation.
Click here for more information.

Anti-Money Laundering: CDD timing issues?

Legislation requires real estate agents to complete CDD on vendors before the agent signs a listing agreement. Are you experiencing any issues with this approach? If so, please email Lisa Gerrard with your story.


REINZ is pleased to welcome Amesha Rama to the team

Amesha is a solicitor and provides support to our Chief Legal Officer, Lisa Gerrard.

Amesha helps manage advisory-related queries from members, and updates and grows the REINZ suite of advisory resources.

Verifiable Training

North Shore Verifiable Training
Wednesday 19 & Thursday 20 February
Registration deadline Thursday 14 February - a $50 per person late fee will apply after this date.


All 2019 Verifiable Training dates now available

Check for your regions training here.


REINZ welcomes back Tom Panos

New Year, New You! Auckland - Thursday 21 February
Check out the flier here

Note: Tom will also be presenting in Wellington & Christchurch in 2019 - Info to come


Verifiable Dates for 2019

Region Dates Location  
February
North Shore 19 - 20 Netball North Harbour Centre Book Now
March
Christchurch 1 6 - 7 The Atrium Book Now
Queenstown 20 - 21 Mercure Queenstown Book Now
April
Auckland 1 3 - 4 Events on Khyber Book Now
Wellington/Lower Hutt 10 - 11 Lower Hutt Events Centre Book Now
Dunedin 10 - 11 Edgar Centre Book Now
May
Thames 1 - 2 Thames Civic Centre Book Now
Whangarei 8 - 9 Northland Events Centre Book Now
New Plymouth 15 - 16 Novotel Book Now
Hamilton 29 - 30 Workingmen's Club Book Now

Regional Meetings

Blenheim Regional Meeting
Monday 18 February, 10am - 12pm
Come hear Bindi Norwell speak about what’s happening at REINZ and share the latest regional data. Our partner Property Press will share some relevant new research. We look forward to seeing you!

Nelson Regional Meeting
Monday 18 February, 2pm - 4pm
Come hear Bindi Norwell speak about what’s happening at REINZ and share the latest regional data. Our partner Property Press will share some relevant new research and at the end of the presentation there will be the opportunity to mix and mingle over drinks and canapés. We look forward to seeing you!


Sporting Events

REINZ 16th Annual Fishing Tournament
Friday 1 March, 8am - 5pm; Weigh-in 3pm - 4pm
Auckland Sailing Club, 8 Tamaki Drive, Auckland

Partnered with Property Press, this is gearing up to be a great day with spot prizes and $2,250 worth of cash prizes up for grabs!

The registrations for the 2018 REINZ Fishing Tournament are now open and you can purchase all tickets online through Eventbrite.

Please feel free to send this link through to any others that you know may be interested in the competition. Friends, family and clients are all welcome to join, but please ensure that everyone is registered.

Book those charters now and come and enjoy a fun, competitive day on the water!

If you have any questions, please get in touch with the Events Team


February
Blenheim Regional Meeting 18 February 10am - 12pm Scenic Hotel, Marlborough
Nelson Regional Meeting 18 February 2pm - 4pm Trailways Hotel
March
REINZ Annual Fishing Tournament 1 March 8am - 5pm Auckland Sailing Club
Thames Bowling Tournament 7 March 9am - 3.30pm Thames Bowling Club
South Island Rural Seminar 26 March TBC TBC
April
Commercial & Industrial Breakfast 10 April 7am - 10am Maritime Room, Auckland
June
NZ Auctioneering Championships - Draw 23 June 5.30pm - 7.30pm REINZ, Auckland
NZ Auctioneering Championships - Heats 24 June 10am - 5pm REINZ, Auckland
NZ Auctioneering Championships - Finals 25 June 10am - 6pm REINZ, Auckland

Introducing the REINZ Enhanced Statistics features

The REINZ Enhanced Statistics Platform has been built to help you get sales data in a timely and accurate way. Thanks to the map search you can now get the visual perspective of sales in your selected area using terrain or satellite view.

Have you ever wondered how to pull the data from a specific zone, such as a waterfront area?

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You can now draw your own search area with custom territory.

  • Select custom territory from the map search
  • Left-click to draw your zone
  • Get the sales data from your selected area

It's that easy! Try it now.

REINZ is reminding landlords they have less than 6 moths left to insulate

Landlords must insulate their properties before 1 June 2019 to avoid risking a fine of up to $4000, with warnings that non-compliant property managers may face further action from MBIE.

Read more here.

REINZ works in partnership with NetYourJob recruitment to provide maximum industry coverage when you’re looking for real estate staff. NetYourJob can provide REINZ Members with competitive marketing rates for job advertising. Contact NetYourJob on 0800 638 968 to find out more or click here to view new jobs this week.