ALERT: Asbestos Duties for Property Managers Clarified!
Worksafe has today finally released official guidance for landlords and property managers in respect of asbestos. In short, asbestos management plans will only be required when there is a risk that asbestos fibres will be released into the air, for example, when renovations or other building work occurs. This means that asbestos management plans are not automatically required for all rental properties.
The guidance can be found here and the policy here.
REINZ Submissions on the Letting Fee Ban
REINZ has filed a submission this week on the proposed letting fee ban. In short, REINZ’s position is that while the letting fee ban may reduce up-front costs for tenants, it is likely to result in rent increases, which ultimately disadvantages tenants. A better way to improve fairness and affordability for tenants is to regulate the property management industry.
Read a Stuff article quoting Bindi Norwell here or find REINZ's press release here.
Last chance to register
Taupo Verifiable Training
Wednesday 6 and Thursday 7 June.
Registration deadline Monday 28 May - a $50 per person late fee will apply after this date.
Verifiable Training
Rotorua Verifiable Training
Wednesday 20 and Thursday 21 June.
Registration deadline Monday 11 June - a $50 per person late fee will apply after this date.
Non-Verifiable Training
2018 Compliance Review Workshop: Staying Safe with the REA.
Wednesday 13 June
Presented by Graham Crews with special guest: Kevin Lampen-Smith, CEO of the REA. Book here.
NEW! Masterclass for Real Estate Managers.
Thursday 28 June.
One day workshop with key note speaker Bruce Cotterill.Limited to 10. Check out all the details here.
Sales Excellence Workshop: Strategies to Increase Listings and Sales.
Thursday 7 June.
Book here
Social Media Workshop: Using Facebook and LinkedIn effectively.
Friday 22 June.
Book here
| Region | Dates | Location | |
|---|---|---|---|
| June | |||
| Taupo | 6 - 7 | Great Lakes Centre | Book Now |
| Rotorua | 20 - 21 | Holiday Inn | Book Now |
| Whakatane | 27 - 28 | Tuscany Villa | Book Now |
| Timaru | 27 - 28 | The Grosvenor | Book Now |
| July | |||
| Wellington | 4 - 5 | ASB Sports Centre | Book Now |
| Nelson | 25 - 26 | Trailways Hotel | Book Now |
| Palmerston North | 25 - 26 | Hotel Coachman | Book Now |
Upcoming REINZ Seminars
North Island Rural Seminar - Tuesday 12 June, 11am – 3pm
On the day before Mystery Creek opens – join us for a half day seminar, filled with knowledge, inspiration and information, tailored specifically to the Rural Sector.
Download the poster
Upcoming REINZ Regional Meeting
Manawatu and Wanganui Regional Meeting
Wednesday 20 June, 4pm – 6pm
Come and join Mayor Grant Smith, Dame Rosanne Meo, Bindi Norwell and Richard Warner from Property Press as they share their insights into what is happening in the region.
Download the poster
Wellington Regional Meeting
Wednesday 4 July, 5pm – 7pm
Join Dame Rosanne Meo in her final year as Chairman and Mark Coffey, Regional Director to 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.
Download the poster
Earlybird Conference Tickets available
Residential Property Management Conference
Friday 3 August, 8am - 5.30pm
Join us for our annual RPM Conference for 2018, held at the Pullman Auckland Hotel. Hosted by Simon McKinney and featuring keynote speaker Hon Phil Twyford.
Please register separately if you wish to attend the cocktail party where we will announce an inaugural Property Management Award.
Download the poster
Commercial & Industrial Conference
Friday 3 August, 8am - 5.30pm
Join us for our annual C&I Conference for 2018 and earn 6.0 NV hours. Hosted by Simon McKinney and featuring keynote speaker Hon Phil Twyford.
This year our conference will be held at the, Pullman Auckland Hotel. Please register separately to attend the evening cocktail party giving you the opportunity to network with colleagues.
Download the poster
Conference Cocktail Evening
Friday 3 August, 5.30pm - 8pm
Join us for our end of conference cocktail party at the Pullman Auckland Hotel. This is included in your conference registration but get in quick as there is limited space!
2018 REINZ Awards for Excellence
Tuesday 28 August, 6pm - 10pm
Entries are open from 5 June 2018.
Download the invitation or the 5 Ticket discount REINZ Awards for Excellence or the 10 Ticket discount REINZ Awards for Excellence
| June | |||
| North Island Rural Seminar | 12 June | 11am – 3pm | Hamilton |
| NZ Auctioneering Championships Draw | 17 June | 5.30pm – 7.30pm | REINZ, Auckland |
| NZ Auctioneering Championships Heats | 18 June | 10am – 5pm | REINZ, Auckland |
| NZ Auctioneering Championships Finals | 19 June | 10am – 6pm | REINZ, Auckland |
| Manawatu & Wanganui Regional Meeting | 20 June | 4pm – 6pm | Manawatu Golf Club, Palmerston North |
| August | |||
| REINZ Property Management Conference | 3 August | 8am - 5.30pm | Pullman Hotel, Auckland |
| REINZ C&I Conference | 3 August | 8am - 5.30pm | Pullman Hotel, Auckland |
| Conference Cocktail Evening | 3 August | 5.30pm - 8pm | Pullman Hotel, Auckland |
| September | |||
| Women's Breakfast | 27 September | 7.30am - 10am | Pullman Hotel, Auckland |
| October | |||
| Australasian Auctioneering Championships Draw | 14 October | 6pm - 7.30pm | REINZ Centre of Excellence, Auckland |
| Australasian Auctioneering Championships Heats | 15 October | 10am - 5pm | Q Theatre, Auckland |
| Australasian Auctioneering Championships Senior Finals | 16 October | 10am - 5pm | Q Theatre, Auckland |
| Australasian Auctioneering Championships Gala Dinner | 16 October | 6.30pm - 10.30pm | The Maritime Room, Auckland |
Landlord awarded substantial costs from Tenant’s illegal subletting on Airbnb
Commentary: This is an important decision that potentially opens an additional avenue for landlords to obtain remedies if their tenant has illegally sublet the premises to generate a profit.
In this decision, the Tribunal allowed an order brought by the Landlord under the “account of profits” doctrine. This enabled the Landlord to recover profits that their Tenant made from the unauthorised subletting on Airbnb.
It is worth noting that the Residential Tenancies Act does not specifically allow landlords to recover profits. This decision means that, in addition to the Residential Tenancies Act, landlords may be able to rely on the “account of profits” doctrine when their tenant has made profits through a breach of the tenancy agreement.
Property managers are encouraged to read this decision, as it contains useful reasoning on the basis for the “account of profits” application and how amounts awarded would be calculated.
Facts: The Landlord brought claims against the Tenant for abandonment of the premises, and the Tenant’s renting out (subletting) of the premises as an Airbnb rental, when subletting was specifically prohibited in the tenancy agreement.
The Landlord claimed that the tenant rented out the premises on Airbnb some 54 times. Compelling evidence was adduced, which included evidence that showed the Landlord had an associate make a booking on Airbnb and “rented” the premises from the Tenant. The Landlord wrote to the Tenant afterwards, and said they believed the Tenant was using the premises as an Airbnb rental and asked that this activity cease immediately.
The Tenant did not dispute the allegation. Instead, he cited safety concerns with the premises some five days later, ceased paying rent and vacated the premises.
The Landlord sought an order under the ‘account of profits’ doctrine to require the Tenant to pay back profits made from the illegal subletting.
Decision: The Landlord was successful in their claims.
In relation to the unauthorised Airbnb subletting, the Tribunal noted that unauthorized subletting of the premises via Airbnb is an unlawful act, and this was a case where an account of profits should be ordered. In accordance with the doctrine, the Tribunal made adjustments so that the profit paid to the Landlord would be the net amount (rather than the entire gross amount) of profits received by the tenant.
Exemplary damages were also ordered for the tenant’s subletting and abandonment of the premises. In making these orders, the Tribunal took into consideration the commercial nature of the Tenant’s activity, and the fact that the premises have been sublet on multiple occasions over an extended period of time.
Disclaimer: The information in these case summaries is for general informational purposes only and may only discuss some, not all, aspects of a case. It does not constitute legal or other professional advice and does not replace your company’s internal policies and guidelines. Always check your company’s guidelines, policies and information first and seek legal advice if you have any queries.Warm Up New Zealand: Healthy Homes grants ends 30 June 2018
Grants of 50% of the cost of insulation are currently available for low-income owner-occupiers and landlords with low-income tenants.
These Warm Up New Zealand: Healthy Homes grants are limited and will end on 30 June 2018. The Warmer Kiwi Homes insulation grants programme, which was announced in the 2018 Budget, will come into effect from 1 July 2018 and, from that point on, there will be no more insulation grants for landlords.
Property managers with eligible occupiers or landlords are encouraged to find out more about the insulation grants here.
New REINZ Resource: Agency Agreement Template for Business Listings
Today we have released an agency agreement template for business listings, for our business broker members and those members interested in business broking.
Use of the template is not mandatory for REINZ members but rather is intended as a helpful “base document” for agencies to tailor according to their own requirements. The template is developed with reference to the statutory provisions relating to agency agreements in the Real Estate Agents Act 2008 and the Client Care Rules and should be used only in conjunction with the REINZ/ADLS Agreement for Sale and Purchase of a Business, Fourth Edition 2008(5).
We have also produced a User Guide for the template to help you understand matters that warrant more careful attention when you go over it with your client. Matters covered in the User Guide include:
- What to do if your client has indicated they have signed an agency agreement with another agent before you;
- Your entitlement to commission under the agency agreement template;
- “Red flags” to check with your client in relation to the business.
We hope you enjoy these latest resources from REINZ.
Download the REINZ template here.
Download the User Guide for the template here.
Click here to access more REINZ resources from our library.
Friendly Reminder: Check whether any chattels and fixtures in the sale are subject to finance
When signing up a new listing, it is prudent for you check with the vendor whether any fixtures or chattels included in the sale are subject to finance arrangements or loans which the vendor is still paying off.
For example, some companies that sell solar panels or solar power systems offer financing options, so the client pays off the associated costs of the installation and the product over an agreed period of time rather than upfront.
If the vendor has indicated that any items affixed to the property or included in the sale are subject to finance arrangements that have not been fully paid off, it is prudent for you to:
- Obtain any further information available about the finance arrangement so you can make the appropriate disclosure (with the vendor’s consent) to prospective purchasers.
-
The vendor generally has two options in these situations:
a) they can pay off the outstanding loan in full on settlement or
b) they may be able to pass the loan to the purchaser on settlement, subject to agreement from the financier and the purchaser. - A clause or clauses should be inserted into the sale and purchase agreement, to clarify the parties’ agreement in respect of the loan relating to the item.
- Clause 7.2(2) in the REINZ/ADLS sale and purchase agreement by default states that “all electrical and other installations on the property are free of any charge whatsoever” so, if the vendor intends to pass on any finance loans to the purchaser, this clause may need amending or negating as appropriate.
- Remember to recommend the parties seek legal advice prior to signing any sale and purchase agreement. This is especially the case if there are any outstanding loans on the property which the vendor intends to transfer to the purchaser on settlement.
The above is intended for general information only and does not constitute legal advice and does not replace your agency’s internal policies and guidelines. Always check your agency’s guidelines, policies and information first and seek legal advice if you have any queries.
Calling all Auctioneers
Entries for the REINZ 2018 New Zealand Auctioneering Championships close on Friday 1 June 2018 for both the Senior and Rising Star Competition. This year we are excited to be hosting the New Zealand Auctioneering Championships in our very own REINZ Centre of Excellence.
Register here or email Holly Adams.
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.
