Landlord e-newsletter
Issue No. 19 - December 2011
In this edition of the newsletter we cover:
Exemplary damages awarded for unlawful bond practise
The Tenancy Tribunal recently awarded the maximum exemplary damages possible under the Residential Tenancies Act 1986, against a landlord who failed to provide a receipt for a bond, failed to lodge a bond and also failed to provide an address for service of their agent. Each of these breaches carries maximum damages of $1000.
The tenant had been provided only with a mobile phone number for the local agent after paying a three week bond to that agent at the start of the tenancy. There was no other mention of the agent’s contact details in the tenancy agreement. When the tenant used the mobile phone number to raise issues about the tenancy the agent was aggressive and difficult to deal with. The tenant gave notice and requested a bond refund.
The Tribunal said the behaviour of the agent and the Hong Kong based landlord towards the tenant and during the hearing showed they had operated a business with contempt for the law of New Zealand. It said their unlawful acts deprived the tenant of proper records of payments, and deprived her of an independent trustee to hold the bond in the case of a dispute. Failing to provide the agent’s address for service put an obstacle in the tenant’s access to dispute resolution and inconvenienced the Tribunal.
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Tenancy management tips for holidaying landlords
Appoint an agent: You must appoint a New Zealand based agent if you are going to be absent from New Zealand for more than 21 consecutive days at any time of year. You must notify your tenants of the agent’s details and address for service. You must also notify the Department of Building and Housing if a bond is held as well as let your tenant and the Department know when you have returned.
Check addresses for service: The Christchurch earthquake was a reminder about the importance of keeping up to date contact details and addresses for service for landlords and tenants. Email and text messaging has proven to be invaluable during this emergency as tenants became more mobile or vacated tenancies. Remember, provided an email address has been supplied as an address for service, it can be used to serve notices.
Tell us you will be away when you file an application: Indicate on any Tenancy Tribunal application that you file close to Christmas if you are going to be away. Your application could be dismissed if it is set for a day you’re not available and the Department don’t know in advance.
Make applications online: The online Tenancy Tribunal application process is available 24 hours a day over the Christmas period. You can make a Tenancy Tribunal Application online here.
Note the Department’s holiday hours: You can call our Contact Centre bond line 0800 737 666 or tenancy line 0800 83 6262 from 8am-4:30pm on 28, 29 & 30 December. Our normal business hours resume on 4 January 2012.
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New Bill reforms debt collection and enforcement options
The Courts and Criminal Matters Bill will deliver a fit for purpose collections system with simpler, faster and better collection and enforcement services. The bill was passed by Parliament on 7 July 2011 and received Royal Assent on 22 July 2011.
The Residential Tenancies Act 1986 will be amended to enable Tenancy Tribunal Adjudicators and Mediators to record the details of an attachment order agreed by the parties at the end of a hearing in their orders. This will enable an attachment order to be imposed immediately.
The District Courts Act 1947 will be amended to make it easier for creditors to obtain an attachment order (requiring debtors’ employers or the Ministry of Social Development to make regular deductions from debtors’ salaries or benefits until the debt is paid), which is usually the most effective means of recovering the debt.
The intention is to bring the amendments to the District Courts Act 1947 and the Residential Tenancies Act 1986 into effect in April 2013.
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Claiming rent arrears in your Tenancy Tribunal application
If you are claiming for rent arrears through the Tenancy Tribunal you always need to file supporting information that shows:
- when rent was not paid; and
- how much is owed in total.
You need to file this information whether your application is made under s55 or s56 of the Residential Tenancies Act.
The supporting information for any Tenancy Tribunal application can be critical to the speed with which your application is entered into our system. Remember you only receive an acknowledgment if your application is complete.
Many landlords use our summary of rent arrears form to show rent arrears. Some landlords also use ledgers and hand write where the missed payments are. If you use ledger evidence you should also ensure the total arrears matches the amount you are claiming.
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Landlords providing internet accounts may face fines under new copyright law
If a tenant uses an internet account in your name for illegal downloading, you will receive a detection notice from the owner of the copyright. Three notices within a nine month period could lead to a $15,000 fine from the Copyright Tribunal.
If you already have a signed agreement with a tenant that includes access to an internet account provided by you, you may wish to negotiate to change the tenancy agreement by consent with the tenant.
Any amendments or variations to tenancy agreements must be made and agreed to in writing by all parties. Any additional clauses added to a tenancy agreement must be in accordance with the Residential Tenancies Act.
For detailed information about setting up, completing, amending or understanding tenancy agreements phone us on 0800 83 62 62.
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