What's the deal with Housing corp tenants?

Question from Catherine Linda Lang updated on 4th March 2009:

What do you think of Housing Corp.tenants? The rent is guaranteed and any damage restored. Would this calibre of renter fit into an immaculate home in a proud, upmarket neighborhood where there are no rentals; or would I be better going through a property manager, but with no rent guarantee? The only reason for having to rent out is a commitment to a retirement apartment, and not wanting a fire sale price for my home. Your professional opinion would be appreciated.

Our expert Jeff Montgomery responded:

Housing New Zealand leave privately owned properties in areas where there is high demand for affordable rental housing. The lease programme provides an opportunity for property owners who want to lease their property in return for guaranteed rental. Generally, lease terms on an existing property are from five years. More information is available here.

If you choose to rent out your property with a property manager acting on your behalf, the relationship between the property manager (as your agent) and the tenant will be a residential tenancy subject to the Residential Tenancies Act. The agreement between you and the property manager, however, will not be covered by the Residential Tenancies Act. I recommend that you seek independent legal advice from a solicitor or your local community law centre about the advantages and disadvantages of both a Housing New Zealand Corporation lease agreement and a residential tenancy agreement with a property manager acting on your behalf. This will help you decide which option is more suitable for your circumstances.



The Department of Building and Housing provides information and guidance on building law and compliance, services including weathertight homes, and advice for tenants and landlords.

 




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