Case Update: Landlord rents out property filled with mould to mother and child

The landlord in this case applied for rent under the tenancy agreement dated 18 July 2019 until the property was re-let in September 2019.

The tenant denied liability for any rent, applied for a bond refund and compensation for air quality testing and a false insulation statement.

What happened?
The tenant entered a fixed term tenancy agreement to rent the premises from 26 July 2019 to 23 August 2020. The tenant claimed that within a week of living in the premises, she and her young child began to experience some serious health effects.

The tenant decided to have the premises tested by engaging an air quality testing company. On 7 August 2019, the company tested the property with results returning unacceptable/unusual results for Penicllium and Aspergillus mould and other spore types.

The report stated “it is recommended not to use both bedrooms until the source of moisture can be located and remediated. Anybody entering the rooms should wear appropriate personal protective equipment.” The report had stated that the lack of ground vapour barrier was a major factor toward the dampness of the property. The report concluded that the property was “unsuitable for human habitation in its current condition.”

The tenant took immediate action and moved out of the property three days later.

Under section 45, 59 and 66 of the Residential Tenancies Act 1986, a tenant may terminate a fixed term tenancy if the premise is uninhabitable. If the landlord represents the property as suitable for residential use and it is not, the Tribunal has the power to set aside the contract meaning it cannot give meaning to the terms of the agreement.

The landlord provided the Tribunal with the pre-inspection report dated 17 May 2019 which noted “at the time of inspection no elevated moisture readings were presented.” This report did not refer to moisture egress or air quality.

The landlord also directed the Tribunal toward a quote which he had obtained in response to the mould issues however, the quote minimised the effect of the moisture egress and did not refer to the air quality.

Given the above, the Tribunal terminated the fixed term tenancy on the basis of the report commissioned by the tenant.

Insulation Statement
The landlord relied on the insulation company they engaged to assess insulation who had stated that underfloor insulation could not be installed as the property rested on concrete pads and was therefore exempt. The insulation statement, therefore, stated that the timber sat on a concrete pad. Photographs were provided to the Tribunal that evidenced that the timber did not sit on the concrete pad.

Finding
The Tribunal found that the landlord had provided a false insulation statement to the tenants and ordered compensation.

Click here for the decision.

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Updated Residential Management Authority

REINZ has updated the Residential Management Authority to reflect the new changes under the Residential Tenancies Amendment Act 2019 and the new Privacy Guidelines for Landlords and Tenants.

Click here to access the updated agreement.

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Bond refund tips - from Tenancy Services

Here are some tips to help tenants get their bond money back quicker and less admin for you.

• If you’re attaching a photo of a refund form, use a high quality image and make sure the signatures can be clearly seen
• Attach the photos or files to the email, rather than inserting them into the main body of the email, or sending links to documents
• Make sure the signatures match the signatures on the bond lodgement form. If they don’t match there will be a delay in refunding the bond.

It currently takes around 10 working days to process a bond refund when Tenancy Services receive a fully completed and correct form and the other party does not contest the refund.

More information of bond refunds.

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Healthy homes ventilation standard - requirements for existing fans and the location of fans - from Tenancy Services

If there is an existing fan: fans installed before 1 July 2019 must ventilate to the outside of the house and be in good working order, but they do not need to meet the specific size or performance requirements until the fans need to be replaced.

Location of extractor fans: For kitchens, a rangehood above the cooktop usually captures steam more effectively than an extractor fan installed through an external wall, window or ceiling. However, an appropriately-sized and installed extractor fan will still work well and may be the only option in some situations.

For bathrooms, extractor fans can be installed through an external wall, window or ducted through the ceiling.

Exemptions to the ventilation standard.
Download the ventilation guidance document.

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SAVE THE DATE - 2020 REINZ Residential Property Management Conference

Friday 7 August, 2020

Auckland

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REINZ Residential Rent Review

The September REINZ Residential Rent Review is now available here.

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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 can I not collect?