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Rental agreements and the responsibilities of tenants

Tenants

MyPropertyLife 04 Aug 2016

69983553_thumbnail-761047-edited.jpgWhen it comes to rental agreements it can be difficult at times to know exactly who is responsible for taking care of what. As a landlord there’s a lot you are responsible for, but it’s also important you have an idea of what your tenants should be taking care of.

Pay rent on time

Its up to tenants to pay their rent on time as set out in the the tenancy agreement, whether that’s weekly, fortnightly or monthly. It might be unreasonable to expect payments in cash, so an arrangement to use internet banking or automatic payments should be outlined upfront. If tenants don’t adhere to the agreement, contact them immediately - there is a letter template available from the Tenancy Services website, which gives tenants 14 days get the problem sorted. If at the end of the 14 days you still haven't received a rent payment, then you are entitled to take them to the Tenancy Tribunal.


Utility bills

Tenants are obliged to pay utility bills for your rental property. Water bills can be a dividing issue. The tenant is only responsible for paying for water usage, if like in Auckland, the company supplying the water charges separately and there is a water meter on site to monitor usage. If this isn’t the case, then you as the landlord are responsible for water payments which are part of the property's rates.


Damage and repairs

Tenants are also expected to keep the property in a reasonable state and to contact you (or your property manager) if there is any damage to the property that needs repairs. Sometimes roofs leak, heat pumps stop working and tap washers get old. This is covered under ‘general wear and tear’ and is the landlord's responsibility to fix.  If damage is caused by tenants or their visitors, either intentionally or through carelessness, then it’s the tenants responsibility to pay for repairs.

Be clear about what you expect from your tenants in terms of upkeep. Include a cleaning guide or checklist so they know what you will be looking for. Are they expected to mow the lawns and take care of the garden? What’s included in a property inspection? Being upfront will remove any confusion about what you expect from them, which will hopefully set a good working relationship for the life of the tenancy. At the end of a tenancy you may use the bond money held by Tenancy Services to pay for those repairs.

You may suggest that tenants get renter's insurance to cover any damage caused to the property, and explain that all parties on the lease can be held accountable, even if some of them had nothing to do with the damage causing incident.


Obvious (to some)

Some of the responsibilities of tenants are so self-explanatory. They should be obvious, but should still be outlined as some people still don’t follow the rules. Tenants shouldn’t carry out illegal activity on your property, and only those people whose names are on the lease or tenancy agreement should live at the property.

You may allow tenants to make some changes, like securing furniture against earthquakes, or putting up photos, but they should obtain written permission from you first. They’re definitely not allowed to change the locks, have extra keys cut or make changes without consulting you first.

When the tenancy comes to an end, it’s up to them to remove all personal items from the property, return their keys to the landlord and ensure the property is clean and tidy. Make a time with the tenants to go through for a final inspection, check the property and sign the bond refund form. This should all be done before you give back the bond to make sure they don’t do a runner in the event of any problems

 

Worried about letting your home to untrustworthy tenants? Our free guide can help: 

 

A Guide to Avoiding Risky Tenants

The information provided by MyPropertyLife is general and is not intended to serve as advice. Please see our Disclaimer for further details.