Act gives clearer tenancy rules

Press, 3 February 1987, Page 3

Act gives clearer tenancy rules

The Residential Tenancies Act setting out the rules governing the rights of landlords and tenants in residential houses came into force on February 1. The act was designed to make the rights of landlords and tenants better understood and fairer. The Tenancy Bond Division, a department of the Housing Corporation, was established to assist landlords and tenants to resolve disputes and understand the law concerning rental housing. Previously, landlords and tenants had to wade through a stack of acts, amendments, precedents and regulations. The new act sets out the rights and obligations of landlords and tenants in 54 sections over 33 pages. There used to be little a landlord or tenant could do if the other party to the agreement was unreasonably or irresponsible. The Tenancy Bond Division provides a mediation service to ensure landlords and tenants have a practical remedy when they believe their rights are infringed. However, the Housing Corporation has had to answer thousands of questions from confused inquirers. Many questions concern one of the principal changes introduced by the act, the bond. The maximum bond a landlord can now charge is an amount equal to four weeks rent All bonds must be passed to the Tenancy Bond Division, which holds the bond for the landlord and tenant as an independent party. The division suggested that when paying the bond both the landlord and tenant should fill out a checklist on the condition of the property at the start of the tenancy. The landlord and tenant should both sign, a bond lodgement form.*-: To have the Wind re-

turned at the end of the tenancy the landlord could either sign the bond over to the tenant on a bond claim form, or both parties can agree to divide it. If there was any disagreement over this the Tenancy Bond Division would act as mediator. Once the bond claim form was signed and received by the division the bond would be paid out immediately. If the division mediators could solve the problem the dispute would be passed to the tribunal to decide the case quickly and informally.

Questions regarding rents were also numerous.

A landlord may increase the tenant’s rent but only after 60 days notice, but the increase cannot take effect six months after the start of the tenancy, or the same period has passed since the last rent increase.

However, as long as proper notice is given there is no regulation limiting how much a rent can be increased. If the tenant believes the rent to be excessive he or she can appeal to the Tenancy Bond Division either to provide mediation or ask the tribunal to review the rent The tribunal will set a rent based on the market rent for the property and this order wiill fix the rent for six months.

The question of giving notice has also caused concern.

The tenant must give the landlord 21 days notice and the landlord must give 90 days notice. If, however, the landlord wants to sell the property, or house himself, he, a member of his family or an employee need give only 42 days notice to vacate. The landlord must also give 48 hours notice to enter the property for a general inspection but

only 24 hours notice to make repairs. If the tenant is required to leave the property but refuses to do so the tribunal can file possession orders with the District Court which are enforced by bailiffs. The responsibility of repairs can also be discussed with Tenancy Bond staff. The Tenancy Tribunal acts as a back-up and can order a landlord or tenant to make repairs or pay for repairs.

At the start of a tenancy, the tenant can be asked to pay solicitor’s or real estate agent’s fees. The tenant also pays for electricity, gas, telephone and excess water charges. The landlord pays the rates, the water rates, land tax, and any insurance covering the property. Under the act, if the tenant breaks any other terms of the agreement the landlord can issue a warning, allowing at least 10 working days to put things right. If the tenant ignores the warning the landlord can go to the tribunal for a possession order, which requires the tenant to leave.

Inquiries about the act can be made of the Tenancy Bond staff on the ground floor of the Housing Corporation building in Cathedral Square.