Housing New Zealand properties?
Question from David updated on 7th February 2014:
We are considering renting out a property to Housing New Zealand for five years. What are the pros and cons of this versus renting on the open market?
Our expert Alan Bruce responded:
The Ministry of Business, Innovation and Employment (the Ministry) provides advice on the Residential Tenancies Act 1986 (the Act) and the relationship between landlords and tenants. One such situation that does not fall within the jurisdiction of the Act is the agreement between a property owner and their tenant (the sub-landlord) where the arrangement is specifically set up to enable the sub-landlord to sublet the premises for the purpose of providing social housing, where such an agreement is not used as an attempt to evade any of the provisions of the Act, and where the sub-landlord will not occupy the premises. So it is unlikely that your agreement with Housing New Zealand will be covered by the Act. We recommend that you seek independent legal advice in the first instance so that you are fully aware of what is involved when deciding what type of arrangement is the best option for you. Should you decide to act as a landlord, and would like more information on the rights and responsibilities of landlords and tenants who enter into agreements covered by the Act, you can visit the Ministry’s website (www.dbh.govt.nz), or call 0800 TENANCY (0800 836 262).The Ministry of Business, Innovation and Employment provides information and guidance on building law and compliance, services including weathertight homes, and advice for tenants and landlords.