Renting
Every Tenancy Agreement is issued under the Residential
Tenancies Act 1986 and information or advice can be obtained by
going to The Department of Building & Housing website www.dbh.govt.nz Below are Tips
for current renters and for those who plan to rent in the
future
Tenancy Agreement
A tenancy agreement is a legally binding agreement that you
enter into. Before you sign anything, make sure you read and
understand all the conditions of the agreement. If you are unsure
or don't understand anything, don't sign, ask questions or seek
external advice. At the time of signing the tenancy agreement, your
agent must inform you either verbally or in writing that if you
breach the agreement your personal information may be listed on a
Tenant Database.
Tenant Databases
Tenant databases provide real estate agents with personal
information about the previous tenancies of prospective tenants
where there have been problems abiding by the tenancy agreement.
This information helps agents to assess if a prospective tenant is
likely to be a financial risk to the landlord's rental property.
You are only listed if the tenancy agreement is terminated.
The real estate agent must advise you in writing of their
intention to list you and the reason(s) for doing so. The agent
must give you a reasonable opportunity to respond, this includes
time to review and correct the personal information about you that
the agent intends to list on the database. Be sure to keep a copy
of all communications.
The agent must quote your objection in the database if you
disagree about any of the details they intend to list. You can
still be listed if the agent fails to contact you but has made
reasonable attempts. You can only be listed for specific reasons
and you cannot be listed for minor breaches of a tenancy
agreement.
What are the reasons I would be listed on a Tenant
Database?
- Owing Money to the landlord for rent or damage caused
intentionally or recklessly to the premises. Note: only if the
amount owing exceeds the amount of the rental bond.
- Failure to pay a sum of money to the landlord in accordance
with an order of the Tenancy Tribunal.
- Where the Tribunal has issued a termination and possession
order for breach of the residential tenancy agreement.
- Where the Tribunal has issued a termination and possession
order for serious or persistent breach of the residential tenancy
agreement
- Where the Tribunal has issued a termination and possession
order for serious damage or injury.
Rent and Bond
Real Estate Agents may require you to pay rent in advance and a
security deposit of between 4 to 6 weeks' rent (rental bond) when
moving into a property. Before moving into the property ensure you
discuss how much money is required and when payment is required, as
agents usually require cleared funds.
Property Condition Reports
When you move into the property, the real estate agent is
required to complete an inspection report, which documents the
condition of the property when you take possession. It is important
that you take the time to accurately complete this report to
minimise disputes with the agent at the end of the tenancy, taking
photos is a good idea to minimise disputes.
Insurance
Owner's insurance does not cover the tenant's possessions,
therefore it is the tenant's responsibility to insure their
belongings and furniture.
Preparation
Areas in high demand can be competitive for tenants. Therefore
it is important to impress a prospective real estate agent and be
well presented and prepared. You should try to obtain references
from your previous real estate agent(s) and employer prior to
inspecting properties, this will give you a competitive edge over
other tenants and prove to the agent that you can afford the rent
and properly maintain the property. Such items useful to obtain may
be; a printout of your tenant ledger, copies of routine inspection
reports, bond refund documents or even pay slips.
Paying Rent on Time
In the tenancy agreement it is a condition that rent must be
paid on time and in accordance with the terms and conditions set
out in the agreement. Paying your rent on time is your
responsibility. Not paying rent on time could cost you a potential
reference from an agent.
Keeping Records with Agents
In order to reduce the possibility of disputes or
misunderstandings with the real estate agent you should consider
keeping notes and records of conversations that take place with the
agent once you have entered into the tenancy agreement. An easy way
to do this is confirming your understanding with the agent by
sending a signed letter of agreement.
Routine Inspections
Regular inspections by the real estate agent are generally a
legal requirement as outlined in the tenancy agreement, they ensure
that the property is being cared for properly and no damage has
occurred.
Repairs
It is your responsibility to look after the property which
should be maintained in good repair. If any problems arise it is
important to report problems or concerns in writing to your real
estate agent.
Rent Increases
Rental increases are a common occurrence when renting a property
especially in areas of high demand. If a rental increase occurs the
real estate agent must do so in accordance with any legislative
requirements and issue tenants with the appropriate notice in
writing.
Giving Notice
Terminating a tenancy must be done in accordance with the
tenancy agreement and legislative requirements. You should discuss
the notice requirements with the real estate agent when giving
notice. Always submit your notice in writing.
Sub-letting
Before you can sub-let the premises you must have the written
permission of the landlord of the property. A landlord can refuse
permission for you to sub-let, even without reasonable grounds. The
tenancy agreement you enter into with the landlord
must include a separate agreement for everyone
over 18 who will live in the property.
Communicate
Open and honest communication is the best way to maintain a
happy and professional ongoing relationship with your real estate
agent. Always keep the lines of communication open with your agent
to ensure a positive relationship.