The following blog is in response to the attached article: Invercargill house trashed in”Vile Betrayal of Trust” https://www.stuff.co.nz/southland-times/114908210/invercargill-house-trashed-in-vile-betrayal-of-trust?cid=app-iPhone
“Cairns said with the family living out of town, it could have been desirable to have a Property Manager” – Monica Cairns, Real Estate Agent at Harcourts Invercargill.
Reading between the lines of this story, there are several factors that should be questioned.
Firstly, with regards to the ‘agreement’ that was signed. If something was to go wrong, who was going to enforce it? With the Landlord being out of the picture, there was no method or process for ensuring the agreement was being followed. Action was only taken after the bank was in contact with the Landlord about her account being in arrears.
Yes, it was a trusted friend renting the property, however, the property should have been viewed as a business first.
(Remember, with money changing hands the landlord is now a PCBU).
Had this been the case, would there have been nearly $100,000 of losses in property damage and chattels?
What the Landlord could have done to manage the situation?
A major issue that was evident was that the property that was not being checked on at regular intervals. Quarterly, 6 monthly or yearly inspections would have assisted in preventing the state of disrepair the property was discovered in. Not only could this process assist in discovering issues, but it could also change the behaviour of the Tenant. Had the Tenant known that there were to be routine inspections on the property, their mindset could have been affected leading to them having more care for the property knowing they had a higher level of accountability.
Distance shouldn’t be an excuse for why people aren’t protecting their property and belongings. It also shouldn’t matter whether the property and belongings are being rented to friends or family.
In this instance, the Landlord should have enlisted a Property Manager or at the very minimum appointed an agent and utilised the Certificate of Compliance app to carry out the reports
Property Managers/Agents look after Landlords properties when they can’t, taking on maintenance, inspections, rent collection and general management of the property.
As mentioned, the property when rented out should be treated as a business. With any business, processes need to be put in place to protect the property and in this case, ensure the conditions of the Residential Tenancies Act were being followed appropriately.
The Solution – A Certificate of Compliance
What the Certificate of Compliance provides is a livability rating of the property and can be undertaken by both Landlords and Property managers.
It also confirms whether the property is compliant with the following legislation:
- Health and Safety at Work Act 2015
- Residential Tenancies Act 2016
- Residential Tenancies (Healthy homes Standards) Regulations 2019
- Residential Tenancies Amendment Act 2019
Having assessments undertaken at regular intervals can keep a track record of the condition of the property and whether it has changed.
More importantly, it can identify what factors may have led to the changes. For instance, was the change due to normal wear and tear? Or was there something the Tenant may have done, that affected the properties condition?
Keep on top of what is happening at your property! Don’t get caught out as this Landlord did, along with many others in the past.
Take the best step for securing your investment and measuring the properties liveability by getting a Certificate of Compliance!
For further details, either email [email protected] or phone 03 929 1403.