Landlord e-newsletter
No.9: June 2009
In this issue we cover:
Keeping clean and tidy: infestations and mould
Landlords are required to provide premises in a ‘reasonable state’ of cleanliness for an incoming tenant.
By presenting the property in a tidy condition, a landlord helps set the expectation for what ‘reasonably clean and tidy’ means, particularly when a tenancy expires. This extends to eliminating infestations and curing mould or damp issues.
A tenant’s sense of clean and tidy conditions could be different from the landlord’s. Particular behaviors of the tenant may create excessive mould, damp or insect activity.
Once the tenant moves in, they are responsible for maintaining the premises in a clean and tidy condition.
Issues of cleanliness and tidiness tend to change with the seasons. For example, around spring and early summer complaints about cleanliness are often linked to concerns about insects or infestations. Around autumn and winter, there are more complaints about damp and mould. Winter is also a common time to receive complaints about rat or mice infestations.
Any concerns the landlord has with the tenant should be raised as part of the landlord’s regular formal inspections.
Infestations
Landlords should take responsibility for fumigations and any rodent or insect issues before a new tenancy begins.
Some landlords arrange an annual fumigation (at their cost) as part of the terms of the tenancy agreement.
Landlords may also want to record that there are no known infestations or recent infestation issues in the tenancy agreement.
Any recurring infestations could be argued to be the responsibility of the tenant as part of their obligation to keep the premises reasonably clean and tidy. In those cases, a landlord could seek an order from the Tenancy Tribunal for the fumigation work to be done and for the tenant to be charged for this.
Mould and damp
During winter months, there is usually a sharp increase in tenants seeking advice about living conditions. If in doubt, ask yourself how you would feel living there with your friends or family!
Take an honest look over your property and consider the following points:
- Condensation
- Is the ducting for dryers in any laundry area adequate? Hot air emitted internally will promote condensation problems.
- Is there a covered outdoor area for a tenant to dry washing on a clothes airer rather than inside?
- Damp
- If dampness is present, does the house need under-floor sealing with building paper or polythene?
- Are any of your tenants sleeping on a floor mattress? These make damp areas on the floor. It is also not ideal for the health of your tenants.
- Bathroom and kitchen ventilation
- These are high-use areas that promote mould damage. Consider whether extractor fans are needed or safety catches on windows that allow them to remain open.
- Insulation
- Look under the roof and assess the top of the ceiling and the state of any insulation.
- Heating
- What type of heating is there? You could consider installing a flued gas heater, which would reduce water by 1 litre per kg of gas consumed from unflued gas heaters (thereby reducing condensation and damp).
- Water Use
- Do your gutters, down pipes and drains need repairs or cleaning?
- Do any outside taps drip?
- Does your shower curtain sit inside the bath unit to prevent overflow effectively or do you need to modify it?
- If you have aluminium joinery, check the drip holes are clear. Some older joinery does not have drip holes
- General
- Are the inside linings of your cupboards, wardrobes and closets dry?
- Are the air vents in the foundation areas of your house clear?
- Are the under-house pipes in good condition?
- Do the curtains have adequate thermal backings?
- Do any trees or shrubs need pruning to reduce dampness or enable greater light and sun?
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Tools for tracking and recording rent
Your bank may offer services that can help you monitor rent payments quickly. Telephone banking and internet banking are two of these services. Some banks are now also offering text banking services, which send a text message to confirm a payment has been made.
Check with your bank for more information about the services they provide.
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Keeping accurate rent records
Landlords are required to keep proper records of rental income. This will also help you find information easily in the future.
The Department of Building and Housing provides a rent summary spreadsheet which can be downloaded in Word, Excel or PDF formats and include columns for rent due, date due, rent paid and an accumulated balance for each due date.
Many landlords rely on bank statements alone for managing their rental income, but bank statements are not sufficient evidence for the Tenancy Tribunal. If there is a dispute about rent and you apply to the Tribunal, you will need to provide an up-to-date rent summary sheet, which details the payment dates and amounts for the duration of the tenancy.
Inland Revenue also requires record-keeping for rental properties, and this is covered in their guide to rental income. Visit the IRD website
to read more or to download the guide.
Landlords are also required to keep ’proper business records’ which show all payments of rent and bond, under the Residential Tenancies Act. Your tenant has the right to ask for a copy of your rent payment schedule in writing at any time, and you have a duty to supply one.
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Rent arrears
Rent arrears are something landlords may encounter as part of managing their tenancy.
An up-to-date rent payment schedule is important if you need to meet your tenant to discuss rent arrears. Acknowledging the history of payments shown in the schedule can also be a positive starting point for the discussion.
When you have agreed on payment of arrears, landlords should ask a Department mediator to seal the terms of the arrears agreement. An unsealed agreement remains unenforceable, which could be problematic for landlords. Find out more about mediation »
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Lodging the bond
When landlords or property managers take a bond, they must lodge it with the Department of Building and Housing within 23 working days. This is a legal requirement under the Residential Tenancies Act 1986.
Some landlords have recently discovered their property managers had not lodged bonds. This meant the landlords were not protected against the risk of a tenant damaging the property or leaving rent unpaid.
The Department administers more than 400,000 bonds per annum, so it’s important to provide the right information when sending bond money to us.
- Make the cheque payable to the Department of Building and Housing
We will not be able to lodge the bond if the cheque has not been made out correctly.
- Enclose the Bond Lodgement form with your cheque
Please complete every section of the form clearly to prevent delays when you apply for a refund. Both parties should sign the form. You can get copies of the form through our website.
- Provide an Address for Service for both landlord and tenants
An Address for Service is an address in New Zealand where notices and other documents relating to the tenancy will be accepted by you or on your behalf, even after the tenancy has ended. The Address for Service cannot be a post office box. It is also a good idea to include an email address – the Department will be using this more in the future to communicate with landlords.
- Check the Bond Lodgement form is signed by both landlord and tenants
When an application is made for a bond refund, the signatures on the Bond Refund form are checked against those on the Bond Lodgement form. The Department of Building and Housing needs to hold a copy of the signature of anyone likely to sign the Bond Refund form.
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Using our online Tenancy Tribunal application service
More and more landlords and property managers are filing their applications online. Find out how to access the Tenancy Tribunal online service here »
So it can be processed quickly, make sure you attach all the relevant documents with your online application. The Department’s case coordinators advise that almost all the applications they have to reject or delay are because the right documents weren’t included at the time of filing.
You need to scan and attach copies of your signed tenancy agreement, rental summaries and copies of other relevant evidence with your application. The Department’s website makes it easy to upload these scanned documents.
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Landlord’s obligation to keep the property secure
The obligation for the landlord to keep a property secure is a positive obligation. This means it carries on throughout the tenancy and needs ongoing attention from the landlord, regardless of whether tenant behaviour may have affected the security of the property.
Landlords have to make sure locks and fastenings are secure. If your tenant breaks a lock, you need to act promptly to make the lock secure. You shouldn’t wait to be compensated by the tenant – you can recover the cost of damages or new lock repair from the tenant later.
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Public submissions sought on new Residential Tenancies Act Bill
The Residential Tenancies Amendment Bill has now had its first reading in Parliament and has been referred to the Social Services Select Committee.
The Committee has now called for submissions. The closing date for submissions is 3 July 2009. You can find details on how to make a submission on the Parliament website www.parliament.govt.nz or through this link.
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