Q. Why Do I Need To Pay A “Bond”?
Payment of a bond is standard in NZ. Tenants pay up to four weeks’ rent in advance, before their tenancy starts (only 1 week for a boarding home). This assists the landlord later in case any rent owing isn’t paid during that tenancy, or if the tenant damages the property. Many owners have mortgages and rely on the rent to make their payments.
The Bond will be held by The Tenancy Services section of the government body; the MBIE (not required for boarding homes). The full amount will be refunded to the tenant when their tenancy finishes, if there are no rent arrears and the property has been looked after.
Q. What Are Routine Inspections For And Why?
Routine inspections are to check the property is cared for and any maintenance issues that arise are remedied as quickly as possible.
This is important for the health and safety of tenants and their visitors, as well as to protect the owner’s investment.
Dominion Property Management ensures inspections take place every three months, using a checklist, taking photos (keeping respectful of tenant privacy) and recording changes to show the property’s condition. The tenant receives notice prior to the inspection and can be present if they wish.
Inspections aren’t examining the tenant’s housework as such (it’s expected that kitchen and bathroom surfaces, and floors be cleaned regularly though). Things usually checked for are faults with fittings, damage to surfaces, mould, lawn mowing and tidy outdoor areas.
Initial Inspection: In addition, an initial inspection is made prior to a new tenant taking occupancy. We do this with the tenant so there’s transparency and agreement as to the state of the rental before it’s occupied.
Final inspection: Once the tenant moves their belongings out and finishes cleaning the property, we will conduct an inspection with the tenant to ensure the property is left in good condition and to agree on the bond refund. This is standard practice.
Q. What Is A Fixed Term Tenancy? A Periodic Tenancy?
A fixed term means the tenancy applies for a fixed period, which can be anything from a short term (90 days) to long term (years). This will be specified in the tenancy contract. A common period is 12 months. Once the fixed term expires the tenancy automatically becomes “periodic”, unless another fixed term is agreed on.
Neither the landlord nor the tenant can terminate a fixed contract unless they can come to an agreement together, so it’s important everyone is comfortable with the arrangement, including tenants that house share.
A periodic tenancy means there is no length of time specified. The tenancy lasts until the tenant or landlord gives notice in writing that the tenancy will end – notice must be given at least 21 days before the tenant leaves.
Q. Does A Tenant Need Insurance, Or Is That The Landlord’s Responsibility?
The landlord is responsible for insurance of their property, and sometimes will include cover for matters like property vacancy.
The tenant is responsible for his/her own contents insurance, which should cover theft or damage to that personal property. The tenant is also liable for damage to the rental property caused by anyone they legally allow onto the property, so it’s advisable tenants have public liability insurance to cover this risk. Students, or young people living in any privately rented property are not covered by their parents’ insurance.
It’s a good idea for the tenant to check with their landlord what insurance they have, to determine what cover they’ll need.
Q. What If I Lose My Key?
The tenant should always keep their keys with them. Usually a fee is charged if a landlord or property manager is required to unlock a tenant’s door, so it’s a good idea for the tenant to arrange for someone trustworthy to hold a spare key.
Q. Who’s Responsible For Maintenance?
The landlord or property manager has to ensure the house structure, plumbing, security locks, and electrical wiring function safely and well. This is why regular inspections are important.
Both landlords and tenants are responsible for maintaining the outside of the house and the property. Usually tenants need to maintain the grounds such as mowing lawns and weeding – it’s a good idea to discuss and agree on what’s required so the contract is clear before signing.
Q. Sub Letting - Is This Ok?
This depends on the tenancy agreement. Some contracts specify this is forbidden.
Sub letting is when the tenant moves out (e.g. goes on holiday) and allows someone else to live in the house in his or her place, or else allows someone to have exclusive use of part of the house (e.g. to conduct business from) whilst still living there. The terms of a residential lease will usually specify the number of people that can live on the property and permit the building to be residential only.
Any tenant that wants to sub let will need to discuss this with the landlord and establish a new tenancy agreement. Otherwise sub letting can cause insurance problems for both the landlord and the tenant.
Tenants that sub let, will automatically be taking on the responsibilities of a landlord (they become a sub-landlord). If that original tenant is not remaining in the house, they still have to meet their obligations as agreed in their tenancy contract.
Q. Smoke Alarms – Are These Necessary? Who’s Responsible For Them?
Smoke alarms are compulsory by law in NZ rental houses. The landlord is responsible for them meeting certain standards, including the number required according to the building’s size. Landlords should ensure all new smoke alarms are photoelectric models with a long-life battery (note, ionisation alarms are very poor at detecting smoke and are being removed from NZ stores). Landlords must ensure each alarm is in good working order, especially at the start of each new tenancy.
Tenants are responsible for replacing dead batteries and thereby keeping the alarms operational. They must not remove or damage the alarms and need to notify the landlord immediately if any problems arise with them.
Either landlords or tenants not meeting their obligations can be fined. Remember, alarms are there to save lives!
It’s important to us at Dominion Property Management to protect our property owner’s assets and to keep our tenants safe. We’re committed to fair and open communication, so contact us and let us know how we can help you.
