Property Management Changes To Be Aware Of
Add these costs to the cost of the physical rebuild and you have well above what most people will estimate as the replacement cost of the property.
So let’s analyse this for a house that you have owned for 5 years and bought new:
Property Purchase price $ 350,000
Section 71 of the new Residential Tenancies and Rooming Accommodation Act 2008 allows a tenant to make application to the Tribunal if they believe that a significant change from one fixed-term to a new fixed-term is unreasonable.
A significant change means a change to any of the following:
a) The special terms for the tenancy agreement
b) The rent amount and whether it must be paid weekly, fortnightly or monthly
c) The way rent must be paid
d) Whether the tenant must pay for water supplied to the premises
e) Any other services supplied to the premises for which the tenant must pay
f) The number of occupants allowed to reside in the premises if there is a limit on the number of occupants
g) Whether pets are allowed
h) Another matter prescribed under a regulation
‘Another matter’ has not yet been defined nor is there an example to go from at this stage.
How it works is that when a lessor requests a significant change to a fixed-term tenancy agreement (renewal) and the tenant believes that the change is unreasonable, the tenant must enter into the new fixed term tenancy agreement. After that has been entered into, the tenant can then take it to the Tribunal within 30 days.
The tenant will have to file a Residential Tenancies Authority (RTA) Form 16 Dispute Resolution. The RTA will then need to fast track these dispute resolution forms to allow sufficient time for the tenant to apply to the Tribunal if the dispute is not resolved.
If the tenant does not enter into a new agreement and/or does not make application to the Tribunal within the legislated 30 day period, then the tenant cannot dispute the significant change.
Keep a look out for our further articles about the changes.
Filed Under: Property Investment Tips
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