In The Know - Property Management
27 November 2019
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Proposed changes to the Residential Tenancies Act - how a bill becomes law
As stated last week, the Government has announced a number of proposed changes to the Residential Tenancies Act 1986 and has stated that these changes will be introduced via a Bill in the first half of 2020. This means that the changes are not yet law. REINZ will request to appear before the Select Committee to ensure that the views of our members are heard.
Click here to review the proposed changes
Click here to email Lisa Gerrard with your views so we can include them in our submission
See below on how a bill becomes law in New Zealand
Case Update: Tenant had to use a "kitchen" that had no sink
Background
Two tenancies took place in a Whangarei property. The head tenancy was between the original tenant and the owner while, the sub-tenancy was between the original tenant and sub-tenant. This meant that the original tenant became a landlord (sub-lessor) to the sub-tenant.
Refund of "overcharged" rent
The sub-tenant claimed that herself and the sub-lessor would evenly share the rent under the tenancy agreement with the owner. She stated that she should not have been asked to pay half the rent considering her ‘half’ of the property did not contain heating or cooking facilities.
The Tenancy Tribunal stated that there were two tenancies and that the amount of rent that the sub-tenant owed was a matter of contract (tenancy agreement). It was clearly stated on the tenancy agreement that the rent was $180.00 per week.
Facilities for heating, food preparation and cooking
Heating
There were no means of heating in the premises.
The Healthy Homes Standards require that all tenanted premises have a heater in the main living area that is capable of heating to a minimum of 18 degrees Celsius however, this is not yet in force.
The current legal requirement is that landlords must comply with all requirements in terms of buildings, health and safety and safety under any enactment so far as they apply to the premises as per section 45(1)(c) under the Residential Tenancies Act 1986.
Section 6 of the Housing Improvement Regulations 1947 provides that “every living room shall be fitted with a fireplace and chimney or other approved form of heating”.
Local councils interpret “approved form of heating” in different ways. The current interpretation adopted by the Whangarei District Council is that the provision of adequate power points meets this requirement.
Kitchen
Section 5(1)(b) of the Regulations states that all houses must have “a kitchen or kitchenette.” Section 7 stipulates that they must have:
a. A minimum width of 1.5m abd an area of not less than 4m2
b. An approved sink with a tap connected to an adequate supply of potable water
c. Adequate means of preparing food and of cooking food
d. Adequate space for the storage of food.
The sub-tenant was provided with basic ‘benchtop’ cooking facilities in a small area that was effectively a “kitchenette.”
There was only one sink in the premises, and it doubled as a kitchen and bathroom sink.
The Tribunal found that there was breach here and ordered compensatory damages.
Power charges
The sub-tenant claimed reimbursement of power charges as there was no way of calculating her actual usage.
Section 39(3) of the RTA states that the tenants are responsible for all outgoings that are “exclusively attributable to the tenant’s occupation of the premises or to the tenant’s use of the facilities.”
There was no way to calculate the sub-tenant’s actual usage of the power hence, the Tribunal ordered a refund for half of the power costs (considering some power albeit unmeasured was used by the sub-tenant).
Incident - 3 October 2019
The sub-lessor gave a seven-day notice of termination and the sub-tenant correctly ignored this unlawful notice. On 3 October 2019, the sub-lessor along with two other persons entered the premises without consent and proceeded to remove the cooking facilities, and shelving from the kitchen. The sub-tenant called the Police and in the end, the cooking facilities were not returned.
The sub-lessor had breached the right to quiet enjoyment under section 38(2) and breached section 48 which states that the landlord has no right to enter the premises except for the reasons stated under section 48.
The Tribunal found that the sub-lessor’s actions were intentional and awarded exemplary damages.
Region Spotlight: West Coast
The West Coast is an attractive proposition of investors due to the high rental demand, and low vacancy rates. The rental return or cashflow on the West Coast is typically higher than the rest of the country due to the lower average housing price.
Read more in this weeks blog, written by guest author Will Alexander, General Manager of Property Management for Property Brokers.
Health & Wellbeing Survey
In July we surveyed our members on general aspects of health, wellbeing and workplace performance. Based on general findings we identified a significant number of people were concerned about work/life balance and stress in the workplace. REINZ is currently developing a 6-month programme to help address these, alongside other wellbeing issues, so that you can optimise your performance in 2020.
We need your feedback to help shed more light on the issues identified in our earlier survey and to help shape our new 6-month programme. We’d appreciate you taking some time to complete our survey. You’ll also go into the draw to win a $150 Prezzy Card.
Click here to complete the survey.
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
The New Zealand Certificate in Property Management
In order to be flexible and meet your needs we are moving to monthly intakes in 2020! The next intake is 3 February 2020.
Registration and information here or contact Kirstin Brown for more information.
Capital Gains and Rental Yields Report
The Southland region is currently the strongest performing region for investors with residential property with the second highest capital gains and second highest yield according to new research from REINZ.
REINZ Residential Rent Review - October 2019
The REINZ Residential Rent Review for October 2019 is now available and can be read here.
SAVE THE DATE - 2020 REINZ Residential Property Management Conference
Friday 7 August, 2020
Auckland
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
Finding the right tenant - what can I collect after I have selected a preferred tenant?
