Warning for landlords

Press, 12 September 1987, Page 6

Warning for landlords

A Christchurch landlord has been asked to pay Interest lost by the Housing Corporation on bonds he failed to lodge under the Residential Tenancies Act Mr Edward Snyder was found guilty of failing to pay bond money on two rental properties to the corporation’s Tenancy Bond Division. Mr Snyder said he used the money to improve the properties. Now, the Tenancy Tribunal has ordered him to pay interest of $lB on the unpaid bonds — believed to be a first for the

division. After the tribunal hearing last week, Mr Snyder was ordered to pay $2OO for each bond not paid. The division subsequently applied to have the landlord make reparation for the interest the money would have earned if the landlord had followed the law. The Christchurch division’s manager, Mr Philip Pigou, said the case was a warning to other landlords that if they defied the law they too would face action. Mr Pigou said the division estimated there were

several thousand bonds still not registered with the division. There were more than 20,000 tenancies in the Canterbury region and the division had received about 1300 bonds. Mr Pigou said the division realised all those tenancies might not be bonded, but the division “knows of landlords who have not paid over the bond money and is looking at taking action against them.” The division has col-, lected a total of $1.4 million in tenants’ bonds.