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In The Know - Property Management

20 March 2019

Find all the Property Management information on this page or visit the full In The Know version

 
 

Serving Notices: Miscalculation of notice periods can be an easily made mistake

It is vital that when serving notices in regard to tenancies, the correct time frame is allowed for; tenancy law gives times frames for when it considers notices have been received. A miscalculation in these time frames can deem a notice invalid and create major issues.

An example would be when vacant possession is required for the settlement of a sale.

REINZ recommends that a follow up phone call, text and/or email is sent once the notice has been served. If hand-delivering, then a photo of the notice being put on the door or in to the letter box is also a good record.

How to serve notice

When ‘serving’ or giving notice to another person, it can be:

- Hand-delivered to the other person. This can be done in person, by placing it in the letterbox or by attaching it clearly to the door of the property
- Sent to the address for service listed on the tenancy agreement
- A notice can also be sent to a PO Box, email address or fax number if it is listed on the tenancy agreement as an additional address for service.

The other person hasn’t been notified until they receive the notice, so extra time must be allowed for the notice to be delivered.

Service time

These times depend on how the notice was delivered. If the notice is:

- Hand-delivered in person, it is classed as received immediately
- Left in the premises' letter box or clearly attached to the door, it's classed as received 2 working days after the delivery date
- Posted to the address or Post Office Box, it's classed as received on the 4th working day after the date it was posted
- Sent to the email address or fax number after 5pm, it's classed as received on the next working day
- Sent to the email or fax number before 5pm, it's classed as received on that same day.

When the notice period starts

The notice period starts the day after the notice was received. This applies to any of the service times above. This means that if the notice is received on a Thursday, the next day (Friday) will be the first day of the notice period.

Difference between a calendar day and a working day

Some timeframes are counted in calendar days (Monday to Sunday). Others are counted in working days (Monday to Friday).

Examples of timeframes counted in calendar days are:

- Notices to terminate a tenancy
- Notices to remedy a breach
- Notice of a rent increase.

Examples of timeframes counted in working days are:

- Service times
- The time a landlord has to lodge a bond
- Notifying a change of address or other details (some public holidays and provincial holidays are not counted as working days).

For more information on what is defined as a working day, refer to The Residential Tenancies Act.

Refer to the REINZ Property Management website for notice templates.


House alarms - Beeping keypads

Alarm technicians recommend a basic alarm system should have the battery back replaced every 3 years. They can last much longer but to avoid problems with power cuts, every 3 years is a smart option.

If a property is to be vacant for any length of time and the power disconnected, it is advisable that a technician be called in to disconnect the battery backup.

If tenants are not going to use the alarm, it is recommended that the alarm be disabled as it can be reinstated at a later date.

There are many different types of alarms that indicate various faults such as time and date, or communication failure - a phone line that has been disconnected that will cause problems with keypad beeping.

It is really helpful to take a picture of the keypad if there is a problem, that way the company servicing it can send a suitably qualified technician who understands the system.


Property Manager Workshop: Health and Wellbeing through Mindfulness

Friday 12 April, 9.30am - 11.00am - Events on Khyber, Auckland
As a busy Property Manager, it’s easy to feel stressed, time-pressured and under the pump. By focusing on what you’re doing in the present moment, you can help calm your mind, alleviate stressful moments and feel much more in control.

Becoming more mindful helps reduce tension, stress and anxiety – especially in a fast-paced working environment when juggling your rent roll, managing relationships, dealing with conflict and more!

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Case Update

Uninhabitable premises?

The issue in this case was whether the landlord was permitted to serve a 7-day termination notice on the tenants as a result of the landlord deeming the premises as uninhabitable.

Section 59A of the Residential Tenancies Act 1986 applies when the premises are destroyed or are so seriously damaged, that they are uninhabitable.

Facts: The tenants noticed gaps in the bathroom tiles and informed the property manager. The tiles later collapsed. A builder inspected the property and due to health and safety concerns arising out of the possibility of the bathroom floor falling away, mould under the tiles and two ruptured pipes, the property manager served a 7-day notice on the tenants as the premises had been deemed uninhabitable.

The tenants were not provided a rent rebate and had to take time off work to find another property to live in. The tenants also informed the Tenancy Tribunal that approximately two weeks later, when they returned to collect their mail, there was a sign positioned on the property indicating that the property was vacant and open to new tenants.

The landlord stated that she relied on the property manager’s advice and was told that serving a 7-day notice on the tenants was appropriate. The landlord then arranged her own builder who repaired the damage within 2.5 weeks.

Findings: The Tribunal accepted that the premises had health and safety concerns, however, were not persuaded that the property was uninhabitable.

The Tribunal stated that the property needed to be more than temporarily damaged for it to be uninhabitable. The fact that the premises was repaired in 2.5 weeks and then re-let indicated that the property was not uninhabitable. Therefore, the Tribunal found that there was no sufficient basis to serve a 7-day notice under section 59A of the Act. Lost wages and rent rebate were awarded to the tenants and payable by the landlord as opposed to the property manager.

You can find the full decision here.


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