Smoke Alarms - New Law from 1 July 2016

By 1 July 2016 every residential rental property must have working smoke alarms.

The landlord is responsible for installing the alarm and making sure it is working at the start of the tenancy. Tenants are responsible for replacing batteries and letting landlords know if there are any defects with the alarm.

Any new alarms or replacement alarms must have long life batteries and must be the photoelectric type or hard-wired.

Landlords must comply with the regulations relating to smoke alarms as stated in the Residential Tenancies Act S138a. Failure to do this is an unlawful act with potential exemplary damages of $4000.

For more information - MBIE website

Insulation - New Law from 1 July 2016

Every new tenancy agreement from 1 July 2016 needs to include a statement by the landlord detailing the location, type and condition of insulation installed in ceilings, under floor and in walls.

What if you don't know this information? It is not good enough to have a statement saying "Unknown". Landlords will need to explain why they have been unable to obtain the information and need to show that they have taken all reasonable steps to obtain the information.

In an increasingly litigious world, we recommend a professional assessment as the basis for providing the statement on the tenancy agreement.

Section 13a of the Residential Tenancies Act details what needs to be included in a tenancy agreement. Failure to comply with this section is an unlawful act and carries a maximum exemplary fine of $500. 

From 1 July 2019, all rental homes will need to have insulation fitted in ceilings and underfloor in compliance with minimum standards.

For more information - Tenancy Services Website

Can I Put My House on the Market for Sale?

Short answer is Yes. As the owner of a rental property you have the right to sell your house. It does not matter if the tenant has a fixed term tenancy. The new owner will however have to honour the tenancy if it is a fixed term tenancy with time to run to the end. 

There are a few laws around showing prospective buyers through the property. Correct notice needs to be given (it is not a stipulated period) by the owner and you cannot insist on open home viewings. There are laws governing the tenant as well - such as they cannot unreasonably withhold their permission for prospective purchasers to be shown through. 

In all things communication is key. Keep your tenant happy and informed and you are far more likely to get co-operation and a nicely presented home. A good property manager should have excellent diplomacy and negotiating skills.

Can I Change Property Management Agencies mid Tenancy?

If you are unsatisfied with your property manager, yes you can change even if there is a current tenancy in place. This is providing there isn’t a clause in the management agreement stating otherwise.

The 2 contracts are separate from each other - the management agreement is between the owner and the agency, and the tenancy agreement between the agent and the tenant.

Check  your management agreement with the agency to see what length the notice period is and give notice in writing. Simple as that. We have a simple 3 step process where we handle all the paperwork, deal with both parties and make the transition seamless.