Property Management

Treat rental properties as a business

The need for landlords to treat their rental properties as a business is highlighted by three new Tenancy Tribunal rulings.

Saturday, March 30th 2019

Landlords from Auckland, Wanganui and Wellington have been ordered to pay a total of nearly $17,000 due to Tenancy Compliance and Investigations Team (TCIT) investigations.

Auckland landlord Peter Wheeler, who owns five boarding houses, was ordered to pay $12,344.64 for failing to lodge tenants’ bond money as required by the Residential Tenancies Act.

The Tenancy Tribunal adjudicator described the actions of Wheeler as being “intended to avoid the need to forward bond money to the Bond Centre” and “to avoid future scrutiny by the Tenancy Tribunal”.

Wanganui Home Maintenance Limited was ordered to pay $3563.52 across eight applications for failing to lodge bonds, failing to maintain the premises, and providing misleading insulation statements.

Wellington Landlord Perry Rama agreed to pay $1000 after he allowed tenants to return to their rented property while it was still the subject of a ‘Dangerous Building Notice’ issued by the Wellington City Council.

He also agreed to pass the management of the properties on to a property management company.

TCIT acting national manager Peter Hackshaw says they proactively assess and investigate landlords to ensure they are treating their rental properties as a business and complying with their responsibilities.

“Landlords who are not meeting their obligations under the Residential Tenancies Act can expect to be held to account, as is the case with these three landlords.”

He says that tenants need to trust that their landlords are doing what they need to do under New Zealand’s tenancy law from the start of the relationship.

“Failing to lodge bond money is a breach of this trust, as is providing inaccurate information on insulation.

“If landlords don’t have the time and knowledge to manage their rental properties as a business, they should pass them on to someone who does.”

MBIE’s tenancy compliance team, which was established in July 2016, focuses on significant or ongoing breaches of the RTA which pose a significant risk to vulnerable tenants.

Read more:

Keep on top of maintenance issues 

Don’t neglect tenant safety 

Comments

No comments yet

SBS FirstHome Combo 5.45
TSB Special 5.99
Co-operative Bank - First Home Special 5.99
ICBC 6.15
Co-operative Bank - Owner Occ 6.19
BNZ - Classic 6.19
ANZ Special 6.19
AIA - Go Home Loans 6.19
ASB Bank 6.19
Unity First Home Buyer special 6.20
Unity 6.29
TSB Special 5.69
ANZ Special 5.69
ICBC 5.69
ASB Bank 5.69
SBS Bank Special 5.69
AIA - Go Home Loans 5.69
Co-operative Bank - Owner Occ 5.75
Unity 5.79
BNZ - Classic 5.79
Westpac Special 5.79
Kiwibank Special 5.79
Westpac Special 5.69
TSB Special 5.69
ASB Bank 5.69
BNZ - Classic 5.69
BNZ - Std 5.69
SBS Bank Special 5.69
Co-operative Bank - Owner Occ 5.69
Kiwibank Special 5.69
ICBC 5.69
AIA - Go Home Loans 5.69
ANZ 6.19
SBS FirstHome Combo 5.94
AIA - Back My Build 5.94
CFML 321 Loans 6.70
CFML Home Loans 6.95
ANZ Blueprint to Build 7.39
ICBC 7.49
Co-operative Bank - Owner Occ 7.65
Co-operative Bank - Standard 7.65
Credit Union Auckland 7.70
ANZ 7.89
ASB Bank 7.89

More Stories

From hunted to hunters

Tuesday, August 20th 2024

From hunted to hunters

Property investors will be back in the market next year, even as house prices rise by 5-7%, Kiwibank says.

Division over OCR cut and problems with RBNZ

Tuesday, August 13th 2024

Division over OCR cut and problems with RBNZ

The NZ Institute of Economic Research (NZIER) shadow board is split over whether the Reserve Bank should drop the OCR tomorrow.

The RBNZ pivot is here

Monday, August 12th 2024

The RBNZ pivot is here

As most of the country’s economic indicators fall, the BNZ and Kiwibank are calling for an immediate OCR cut.

First home buyers fade, investors rise

Monday, August 05th 2024

First home buyers fade, investors rise

Investors are coming back into the property market at a rapid clip.