Privacy update

Harcourts has included articles in previous editions of the Property Management Focus newsletters about the Office of the Privacy Commissioner (OPC) cracking down on compliance in the rental sector.

The Real Estate Institute of NZ (REINZ) recently held additional Privacy Act training, with many Harcourts business owners and managers attending the training to ensure compliance in their offices.

There are some simple measures that Harcourts offices have taken with regards to the collection and use of tenants and prospective tenant’s data that we want to share with our clients.

The 13 Information Privacy Principles (in plain English):

1. Only collect the information you need

2. Get the information directly from the person concerned

3. Tell them what you’re going to be doing with the information collected

4. Be ethical when collecting the information

5. Store the information securely once you’ve got it

6. They can see their information if they want to

7. They can correct their information if it is wrong

8. You must make sure it’s accurate before you use it

9. Don’t keep it longer than needed

10. Only use it for the purpose you got it for

11. Only disclose it if that’s the reason why you got it

12. Take care when sending information overseas

13. Be careful with unique identifiers to protect individuals

The first four principles govern how we collect information, which in the property management industry is often tenants’ information for the purpose of granting a tenancy. Principles five, six and seven govern how we store information and allow the individual access to their personal information. The remaining principles govern how we use, share, and dispose of personal information.

So, let’s take a look at what property managers and landlords should be aware of and how we can abide by the Privacy Principles in a practical sense.

Tenancy Application Process

Harcourts Property Managers use a secure online tenancy application process that only asks for certain information during a phased application process. What this means is that a prospective tenant is only asked for additional personal information to confirm they are suitable tenants once they have been selected as a preferred applicant.

This way, property managers are receiving personal information from fewer applicants rather than receiving lots of information about everyone interested in the property, regardless of their suitability.

Our tenancy application process does not ask for information that is inappropriate or irrelevant for granting a tenancy, however, does allow prospective tenants to provide references and put their best foot forward in the application process.
Everyone in a shared tenancy is required to complete and submit their own application form with a login that is unique to them. Identification such as a copy of a passport or drivers’ licence is only required from preferred applicants and is only used to verify the identity of the person, which is the reason it was required, and then deleted.

Identification documents should not be shared with landlords once it has been used to verify the identity of the individual and should not in any circumstances be printed.

No Print Policy

Harcourts property management offices have adopted a ‘No Print Policy’ for tenancy applications, and these are stored in a secure online system. If there are circumstances where a landlord is provided with the tenant’s information (usually with the tenant’s consent), the landlord is directed to follow the same ‘No Print Policy’ to ensure that the tenant’s personal information is protected.

Emails, Conversations & What Else?

Our diligent property managers record conversations in their software, saving emails, retaining text messages, and all other correspondence about a tenancy. Principle 6 of the Privacy Principles states that people have a right to ask for access to their own personal information. What that means in practice is that a tenant can request copies of all correspondence with their name or where they have been referenced.

If a tenant makes a request for their personal information, the agency will often have just 20 working days to respond, and the information provided would include correspondence between a landlord and a property manager, or any other party when the tenant is mentioned, unless you have received instructions that the conversation was to be kept confidential (i.e. a reference check).

Routine Inspections & Photographs

Property managers are encouraged to take photographs during routine inspections; however, these photographs should only be of specific areas of concern, or of maintenance required. It is unlikely that a photograph of the entire room or area would be necessary.

For example, a property manager may take a photograph of a broken door handle in a bedroom so the landlord can identify the extent to which it requires repair, and the tradesperson can use the photo to prepare prior to going on site. It wouldn’t be reasonable however to take a photograph of the entire bedroom, when only a photo of the broken door handle is necessary.

A photograph of the living room that includes the tenants’ personal belongings, with a comment that the tenant is taking care of the property is likely to breach the tenant’s privacy. The comment from the property manager that the tenant is looking after the property is sufficient and photographs that include the tenants’ personal belongings, should be avoided.

Because a routine inspection is during a tenant’s occupancy and includes references to their tenancy or their personal information and has the potential to include photos of their belongings, they are entitled to request a copy of the inspection report. The property manager may, however, redact information that is not relevant to them if deemed necessary.

When taking photos, the key is to make sure there is a good reason for taking the photos, and that the photos are not unnecessarily intrusive. A tenant has the right to know what we are going to do with the photos.

Harcourts Foundation: Helping kiwi kids when they need it the most.

Harcourts Foundation is proud to support Gumboot Friday, which this year is being held on 4th November. Harcourts Foundation kick started its support with a $20,000 donation, which is a total that the team hope to increase significantly with the support of its people from offices all across New Zealand.

Gumboot Friday is a nationwide initiative which provides FREE kids counselling when it is really needed.

Since April 2019 Gumboot Friday has raised over 3 million dollars for free kids counselling. From this they have paid for over 21,000 sessions for just under 10,000 kids. The average cost per session is $138.00. They anticipate that with the money they have and what will be raised over the next 12 months, Gumboot Friday will pay for a further 20,000 free sessions before the end of 2023.
To learn how you can support Gumboot Friday visit www.gumbootfriday.org.nz and follow them on Instagram: @gumbootfriday

Harcourts Foundation will be showcasing all the fundraising activities and initiatives from their network through their social media channels.

Make sure you follow on Instagram @harcourtsfoundationnz and on facebook @theharcourtsfoundationto see the fun being had to raise funds for our kiwi kids.

Harcourts excel in real estate industry awards

Harcourts New Zealand are thrilled to have won the top prize in seven categories at this years’ 2022 Real Estate Institute of New Zealand (REINZ) awards.

In the awards which Harcourts won this year, our Property Management team secured three property management awards. Winning – Residential property manager of the year, Residential property management business development manager of the year, and Residential property management large office of the year. Harcourts were also finalists in the Residential property management medium office of the year and Residential property manager of the year categories.

With the honours spread far and wide across the Harcourts network. Bryan Thomson, Managing Director, Harcourts New Zealand said, ‘This is a symbol of how the Harcourts network continue to work as a team and to uphold excellent standards of service to all New Zealanders.’

When you’re looking for a new home, one of the first things you need to consider is the order of events – do you sell your existing property before you buy, or after? Here are some factors to consider before taking the plunge.

Buyer’s market or seller’s market?
When buyers are plentiful, but properties aren’t, homes generally sell quickly. In a seller’s market, there is less risk associated with buying first and then selling your existing home. However, sellers in this kind of market may be less likely to accept an offer that is conditional upon you selling your home, so you could end up owning two properties for a period of time.

The average time it takes to sell a property varies from region to region and from month to month, so it’s important to talk to your sales consultant to get advice about current market conditions, recent comparable sales in your area and the possible demand for your property before making a decision to buy first.

Keep in mind also that in a seller’s market there will be more competition, so you can expect to pay top dollar your new home. The good news is that you’ll have the peace of mind that comes from finding the right house to buy before selling yours.

real estate christchurch buying or selling property?

Do you know how much you can spend on your next property?
Until you sell your property, you may not know exactly how much you’ll have to spend on your next one. In a buoyant market, you could easily have unrealistic expectations when it comes to the value of your own property. Your sales consultant can help you get a realistic picture of your property value by preparing a comparative market analysis of what similar properties have sold for in your area in recent times.

Are you a cash buyer?
If you choose to sell first, you will instantly become a cash buyer and be in a much stronger position to buy as soon as you find what you want. Do your homework on the market and area that you are looking to buy in so you’re ready to buy when the right property comes up.

Have you found your dream home?
Buying a new home is an emotional decision. If you want to follow your heart and buy that dream home before selling your current home, make sure you’re well informed. A good sales consultant will provide quality advice for your unique situation. If you are looking for a very specific type of property and it becomes available, it could be a good move to snap it up even if you haven’t sold your home, but there’s no downside in getting expert advice before you do.

Are property prices are going up?
If you’re in a rising market, it could make sense to buy your new home first and negotiate a longer settlement. Your current property could potentially rise in value during the settlement period, allowing you to earn more when you sell it.

Are property prices falling?
Falling property prices can work in your favour as well if you can attract an interested buyer before prices drop further, leaving you free to purchase your new property at the lower end of the market cycle. However, falling property prices are also an indication of a slower market so it could take you longer to sell your existing property.

At the end of the day, your best course of action is to work with a real estate professional who can provide you with the local knowledge and insights you need to make an informed decision for your specific circumstances.

Give one of our consultants a call today if you would like to know more about the current Christchurch real estate market.

 

Bidding for and buying a house at auction can feel intimidating if you have never done it before but a little bit of preparation and homework can make the process far less stressful and more empowering

Pre Auction: Conquering Nerves – Visit an Auction

The simplest and one of the most helpful things you can do is go to a few auctions to familiarise yourself with the process and the environment. Consider doing this well before you’ve found a place you’re ready to bid for, so you can view the auction process and watch buyers bidding strategies.

Once you’ve found a property you’d like to bid for, see if you can find another auction called by the same auctioneer who will oversee the sale of that property. Anything you can do to make your bidding auction day more familiar to you will help you on that day. Feel free to ask the sales consultant you are working with to introduce you to the Auctioneer, but also talk the whole process through with the consultant, they will know you are interested in the property, they in turn will be keen to assist you to buy.

We are delighted to announce that we have partnered with Auctions Live to give one of the most superior online auction experience in the country. This world-class platform provides a seamless service with full transparency for viewers to enjoy Holmwood auctions remotely.

Our auction room is delivering such a positive environment for our buyers and sellers that we felt we needed a strong digital tool to support this great experience. We wanted to take online the drama and excitement of auction days, as well as the easy access for anyone to see the bids and hear the auctioneers, all live!

By using a tool like Auctions Live, we are in a premium position to further promote and amplify auctions to a broader audience while igniting bidders and providing vendors with a competitive advantage. Auctions Live offers an unrivalled impact by harnessing the power of smart auction technology. Their creative tech and support team go above and beyond to help us get the job done every day, all year round.

 

Westpac Chopper Gala
A Night Out To Save Lives

On Thursday 11th August, 2022, we were proud to be part of the hugely successful Westpac Chopper Gala & Charity Auction at Christchurch Town Hall. We were treated to some of the best local entertainment, locally sourced produced and a stellar beverage selection. Overall, it was a truly memorable evening for all involved. The auction was run by our talented auctioneers Mark McGoldrick and Kyle Siebert.

The Air Rescue Helicopter Service could not save lives without the generous support from our community. Make a life-saving difference today by making a donation. Learn how at www.airrescue.co.nz

Ron Towner

Our fabulous agent Liz O’Neill, has been fundraising for the Breast Cancer Foundation since last year after a close friend was diagnosed. This year she held her inaugural Pink Ribbon Auction in May, with great support from the Harcourts Network and local businesses. Usually seen in blue, pink was the colour of the day!

Liz, who is also a competitive Ice Figure Skater auctioned a skating lesson with herself and her fellow Harcourts Holmwood Sales Consultant colleague Richard Dawson won the lesson for $1,000 – on the proviso that the Holmwood CEO Tony Jenkins did the Ice Skating lesson, and that it was filmed by their Videographer Sascha Jehle!

Deciding that it was a great opportunity to continue fundraising for BCF, Liz  engaged local companies Rosefern Homes and Urban Arch, and created her Ice Skating Extravaganza. This involved team members from Holmwood, including Tony Jenkins and Jamin Marshall battling it out on the ice in dance-off’s, relay races and best dressed competitions. Everyone showed off their excellent skating skills, with some tumbles along the way! There was another auction held on the ice which was a great opportunity to bid on some items and raise extra funds. The total amount raised from both events was $31,604.03

Check out the fantastic video and photos from the auction and Ice Skating Extravaganza. Congratulations to Liz, Tony and the entire team at Harcourts Holmwood, this is an amazing fundraising effort!

And a huge thank you to everyone who attended our Pink Ribbon Ice Skating Extravaganza and showed their support!

When a landlord decides to sell a rental property, they must tell the tenant in writing. Harcourts also recommends that this news should be given to the tenant either in person or on the telephone so that the tenant feels respected and involved in the sales process and has the opportunity to ask any questions they may have.

Selling a property can be stressful, and perhaps even more so when there is little benefit for the tenant due to the uncertainty that a potential sale provides. Communication and negotiation with the tenants are important factors to facilitate a successful sale and reasonable access to the property. Once everyone has agreed to a schedule of access and what type of access is agreed to, it is recommended that this is put in writing and signed by everyone involved.

There are three different scenarios that could apply when a landlord sells a tenanted property.

Scenario 1: Selling a tenanted property and the purchaser takes over as landlord.

The landlord sells the property to a purchaser who continues to rent the property to the existing tenants. The purchaser then takes over the tenancy as the new landlord. The conditions of the tenancy are not affected in this scenario. Note that without vacant possession being part of the unconditional agreement, the purchaser may not be entitled to a pre-settlement inspection.

Scenario 2: Selling a tenanted property where the purchaser wants vacant possession.

The landlord sells the property to a purchaser who wants vacant possession on settlement. This must be a requirement of their unconditional agreement for the sale of the property.

If the current tenants are on a periodic tenancy, the landlord must give at least 90 days’ written notice to end the tenancy so that the property will be vacant on settlement. This may affect the settlement date for the property sale. It is highly recommended that there is a period of vacancy between the tenant vacating and settlement so that a final bond inspection can be carried out and any repairs or cleaning attended to.

If the current tenants are on a fixed-term tenancy that was granted on or after 11 February 2021, the landlord can end the tenancy on the expiry of the fixed term (or later) with 90 days’ written notice if the sale of the property has a requirement that the landlord gives the purchaser vacant possession.

If the fixed-term tenancy was granted before 11 February 2021, the landlord can end the tenancy on the expiry in accordance with the rules that were in place before the February 2021 law changes.

A fixed-term tenancy cannot be ended early by the landlord or tenant unless the tenant agrees in writing to end it. If the tenant doesn’t agree, the property must be sold with the tenant and tenancy in place (see Scenario 1).

Scenario 3: Selling a property once the tenant has vacated:

If a landlord wants to put a rental property on the market without the tenant residing at the property, the landlord must give the appropriate notice to the tenant depending upon what type of tenancy they have, and they are required to put the property on the market within 90 days of the tenancy termination date.

If the current tenants are on a periodic tenancy, the landlord must give at least 90 days’ written notice to end the periodic tenancy.

If the current tenants are on a fixed-term tenancy that was granted on or after 11 February 2021, the landlord can end the tenancy on expiry (or later) with 90 days’ written notice.

If the fixed-term tenancy was granted before 11 February 2021, the landlord can end the tenancy on expiry in accordance with the rules that were in place before the February 2021 law changes.

Marketing of the property must not commence until the tenancy has terminated, if the reason to terminate the tenancy was so that the property could be marketed for sale without the tenant residing at the property.

It is important to note that for any of the above scenarios, a tenant on a periodic tenancy can give the landlord 28 notice to terminate their tenancy if they receive a notice of termination from their landlord.

Access to the property

Landlords must get the tenant’s permission before entering the property to take photos. The tenant can refuse to allow photographs of their personal possessions. Landlords must also get the tenant’s permission to show potential purchasers through the property, as well as professionals like a registered valuer, real estate agent or building expert.

Tenants can’t unreasonably refuse access, but they can set reasonable conditions. They may:

limit access to certain days and times of the week
refuse open homes and auctions at the property.
Tenants can insist that the property be shown to potential purchasers by appointment only. They can also ask for a temporary rent reduction in return for permitting open homes (the landlord does not have to grant this). Tenants have the right to be always present at the home, including during open homes.

Harcourts recommends that landlords consider a temporary rent reduction when selling their property with a current tenant, as an act of goodwill designed to appease the tenants during the sale process, resulting in a higher level of cooperation.

If you still aren’t too sure what is required from you as a landlord when selling a tenanted property, please don’t hesitate to get in touch with one of our knowledgeable investment specialists.

The Housing Improvement Regulations 1947 set out the minimum requirements for housing, with the local authorities responsible for enforcing the minimum requirements under the Act. Effectively, a property must meet all these requirements unless it complies with the equivalent Building Code Requirements at the time it was built.

These regulations define a habitable room as any room which is used or intended to be used, or, in the opinion of the local authority, is capable of being used, as a living room, dining room, sitting room, or bedroom; and includes a kitchen having a floor area of 80 square feet or more, but does not include a room constructed and used as a garage. Therefore, a living room can be the lounge, dining, kitchen, or a combination of these spaces depending on the property’s layout according to the Healthy Homes Standards.

The Healthy Home regulations require that the largest room used for general everyday living be used as the living room in terms of measuring heating capacity. Properties that only have heating in the smallest living area are likely to fail the heating standard, as the heating is required in the larger living area. An example of this could be that the kitchen/ dining area is the largest living area and not the lounge/living room, so heating will be required in the kitchen/dining area.

The Healthy Homes Standards set specific and minimum requirements, and landlords can choose to provide heating over and above the minimum standards, heating other parts of the property and not only the main living room. This will ensure a dryer, warmer, healthier home, and one that is likely to be more attractive to tenants.

Harcourts Property Management Activate 2022

The Harcourts Annual Property Management Activate events scheduled for the beginning of the year were finally held in June in four locations around the country. The events were attended by over 200 Harcourts property managers, business development managers, business owners, managers and administrators.

Allison Mooney spoke at each event with her presentation ‘Pressing the Right Buttons’ which was well received as the team learned about different personality types and how we can relate to each other and our clients in the best possible way.

Representatives from MBIE/Tenancy Services spoke at the events about how we can work together for the betterment of the property management industry, as well as internal speakers/panelists and support from our valued
business partners. Harcourts property managers are enthusiastic learners. We are proud of the high attendance at our
Activate events.

Landlord’s Claim for Compensation – Denied

In a recent Tenancy Tribunal, a landlord claimed compensation from the tenant for kitchen vinyl and carpet stains, which was denied by the Tribunal.

The landlord claimed that the tenant had damaged the kitchen vinyl and stained the carpet during the tenancy and the Tribunal agreed that the damage was more than fair we

ar and tear and was likely caused by the careless actions of the tenant.

However, the claim for $500 in compensation was dismissed, because neither the carpet or vinyl was repaired before the property was sold at the end 

of the tenancy, and therefore, the landlord could not establish that they had suffered any loss as a result of the damage.

If tenants or their guests carelessly damage a rental property, they are liable for the cost of the damage – up to four weeks’ rent or the landlord’s insurance excess (if applicable), w

hichever is lower. Therefore, d

epending on the scenario, the landlord may have been able to claim the cost of the repairs against their insurance, with the tenant required to pay the excess. The repairs however, would need to be carried out in order for the landlord to claim for compensation.

Healthy Homes Standards: What Defines a Living Room?

The Housing Improvement Regulations 1947 set out the minimum requirements for housing, with the local authorities responsible for enforcing the minimum requirements under the Act. Effectively, a property must meet all these requirements unless it complies with the equivalent Building Code Requirements at the time it was built.

These regulations define a habitable room as any room which is used or intended to be used, or, in the opinion of the local authority, is capable of being used, as a living room, dining room, sitting room, or bedroom; and includes a kitchen having a floor area of 80 square feet or more, but does not include a room constructed and used as a garage. Therefore, a living room can be the lounge, dining, kitchen, or a combination of these spaces depending on the property’s layout according to the Healthy Homes Standards.

The Healthy Home regulations require that the largest room used for general everyday living be used as the living room in terms of measuring heating capacity. Properties that only have heating in the smallest living area are likely to fail the heating standard, as the heating is required in the larger living area. An example of this could be that the kitchen/dining area is the largest living area and not the lounge/living room, so heating will be required in the kitchen/dining area.

The Healthy Homes Standards set specific and minimum requirements, and landlords can choose to provide heating over and above the minimum standards, heating other parts of the property and not only the main living room. This will ensure a dryer, warmer, healthier home, and one that is likely to be more attractive to tenants.

Selling a Rental Property

When a landlord decides to sell a rental property, they must tell the tenant in writing. Harcourts also recommends that this news should be given to the tenant either in person or on the telephone so that the tenant feels respected and involved in the sales process and has the opportunity to ask any questions they may have.

Selling a property can be stressful, and perhaps even more so when there is little benefit for the tenant due to the uncertainty that a potential sale provides. Communication and negotiation with the tenants are important factors to facilitate a successful sale and reasonable access to the property. Once everyone has agreed to a schedule of access and what type of access is agreed to, it is recommended that this is put in writing and signed by everyone involved.

There are three different scenarios that could apply when a landlord sells a tenanted property.

Scenario 1: Selling a tenanted property and the purchaser takes over as landlord.

The landlord sells the property to a purchaser who continues to rent the property to the existing tenants. The purchaser then takes over the tenancy as the new landlord. The conditions of the tenancy are not affected in this scenario. Note that without vacant possession being part of the unconditional agreement, the purchaser may not be entitled to a pre-settlement inspection.

Scenario 2: Selling a tenanted property where the purchaser wants vacant possession.

The landlord sells the property to a purchaser who wants vacant possession on settlement. This must be a requirement of their unconditional agreement for the sale of the property.

If the current tenants are on a periodic tenancy, the landlord must give at least 90 days written notice to end the tenancy so that the property will be vacant on settlement. This may affect the settlement date for the property sale. It is highly recommended that there is a period of vacancy between the tenant vacating and settlement so that a final bond inspection can be carried out and any repairs or cleaning attended to.

If the current tenants are on a fixed-term tenancy that was granted on or after 11 February 2021, the landlord can end the tenancy on the expiry of the fixed term (or later) with 90 days’ written notice if the sale of the property has a requirement that the landlord gives the purchaser vacant possession.

If the fixed-term tenancy was granted before 11 February 2021, the landlord can end the tenancy on the expiry in accordance with the rules that were in place before the February 2021 law changes.

A fixed-term tenancy cannot be ended early by the landlord or tenant unless the tenant agrees in writing to end it. If the tenant doesn’t agree, the property must be sold with the tenant and tenancy in place (see Scenario 1).

Scenario 3: Selling a property once the tenant has vacated:

If a landlord wants to put a rental property on the market without the tenant residing at the property, the landlord must give the appropriate notice to the tenant depending upon what type of tenancy they have, and they are required to put the property on the market within 90 days of the tenancy termination date.

If the current tenants are on a periodic tenancy, the landlord must give at least 90 days’ written notice to end the periodic tenancy.

If the current tenants are on a fixed-term tenancy that was granted on or after 11 February 2021, the landlord can end the tenancy on expiry (or later) with 90 days’ written notice.

If the fixed-term tenancy was granted before 11 February 2021, the landlord can end the tenancy on expiry in accordance with the rules that were in place before the February 2021 law changes.

Marketing of the property must not commence until the tenancy has terminated, if the reason to terminate the tenancy was so that the property could be marketed for sale without the tenant residing at the property.

It is important to note that for any of the above scenarios, a tenant on a periodic tenancy can give the landlord 28 notice to terminate their tenancy if they receive a notice of termination from their landlord.

Access to the property

Landlords must get the tenant’s permission before entering the property to take photos. The tenant can refuse to allow photographs of their personal possessions. Landlords must also get the tenant’s permission to show potential purchasers through the property, as well as professionals like a registered valuer, real estate agent or building expert.

Tenants can’t unreasonably refuse access, but they can set reasonable conditions. They may:

– limit access to certain days and times of the week

– refuse open homes and auctions at the property

Tenants can insist that the property be shown to potential purchasers by appointment only. They can also ask for a temporary rent reduction in return for permitting open homes (the landlord does not have to grant this). Tenants have the right to be always present at the home, including during open homes.

Harcourts recommends that landlords consider a temporary rent reduction when selling their property with a current tenant, as an act of goodwill designed to appease the tenants during the sale process, resulting in a higher level of cooperation.

If you are considering selling, remember to speak to your local Harcourts property manager. They will be able to assist you with the sales process from the beginning and enable you to achieve the best possible result.

Advice and information for tenants

Minor changes

From February 2021, tenants can ask to make minor changes to a rental property. This change was introduced so tenants can feel more at home in the property they are renting. Landlords can, however, set reasonable conditions.

What meets the definition of a minor change?

A minor change is defined as any fixture, renovation, alteration, or addition to the property that:
• has a low risk of damage to the property • can be easily reversed (property can be returned to substantially the same condition)
• doesn’t pose a risk to health and safety
• doesn’t compromise the structural integrity, weathertightness or character of the property
• doesn’t affect anyone’s enjoyment or use of the property
• doesn’t require regulatory consent
• doesn’t breach any regulatory rules.

What are examples of minor changes?

Depending on the circumstances, examples of minor changes could include: From February 2021, tenants can ask to make minor changes to a rental property. This change was introduced so tenants can feel more at home in the property they are renting. Landlords can, however, set reasonable conditions.
• securing furniture or appliances to protect against earthquake risk or to make a property child safe
• installing dishwashers and washing machines
• installing a baby gate
• affixing child safe latches to cupboards
• installing shelving
• installing television aerials
• installing gardens when these can be returned to the original state at the conclusion of the tenancy
• installing curtains and window coverings
• installing internal locks provided they are compliant with relevant fire safety laws; and
• installing picture hooks.

What is the process?

A tenant must make a request for a minor change in writing and the landlord must respond to this request within 21 days. If the change is considered by the landlord to be more than minor, a landlord can decline if the request does not meet the definition of a minor change. Harcourts property managers can provide you with a form for requesting a minor change on request.

Do tenants need to remove any changes installed during the tenancy?

Yes, tenants must return the premises to substantially the same condition as before the changes were made, including removing the changes, unless the tenant and landlord agree otherwise. Landlords can seek remedy at the Tenancy Tribunal if the tenant does not reverse the change.
As well as the cost of remediation, the tenant may be liable for an additional penalty if they fail to reverse a minor change that the landlord didn’t agree to keep.

What about a tiny house or caravan?

If you are considering having a moveable structure such as a cabin or caravan at the property, you must first seek consent to do so. It may not be as straight forward as it first appears, safety and compliance must be considered. In addition, when the structure is removed, it could be difficult and costly to return the premises to substantially the same as before, particularly if the structure is situated on a grassed area. Talk through any plans with your property manager first as this may not fit the definition of ‘minor change’.

If you want to make a minor change to the property you are renting, ensure that you follow the correct process and contact your Harcourts property manager in the first instance. It is always best to reach an agreement before any work commences so that no one is in breach of their obligations and everyone understands what the expectation is, at the end of the tenancy. leave the fan running until the moisture clears.

Winter ready

Tackling dampness and ventilation creates a dry, healthy home that holds in the heat, reduces emissions and keeps money in your pocket. During a tenancy, tenants need to keep the house well-aired and remove any mould straight away

Easy Ways to Ventilate and Reduce Damp

• Air your home regularly. Open doors and windows for 10-15 minutes each morning. Airing out a room when you turn off the heater also helps to avoid condensation. Keep the curtains open during the day.
• Use energy efficient, low emissions heaters. Heat every room being used by someone to at least 18°C. Don’t use unflued or portable gas heaters.
• Dry washing outside. Use a washing line or rack under a covered verandah, garage or carport. Use a clothes dryer only to finish them off, or if it’s raining.
• Use extractor fans and rangehoods when fitted. Make sure they’re regularly cleaned for maximum extraction.
• Turn on the bathroom fan before a shower or bath. Shut the door and open the window. Afterwards, leave the fan running until the moisture clears.
• Use lids on pots when you cook. This helps to stop the steam escaping.
• Move furniture away from walls in winter. A 10cm gap will discourage mould (especially on external walls).
• Leave wardrobes slightly open. A little air circulation discourages mould growing on fabric.
• Use a dehumidifier on damp days. This will help to reduce condensation, but it won’t solve a dampness problem. It’s better to tackle the sources of damp and heat as detailed above, and ventilate your home daily.

Heat Pumps – how to run your heat pump efficiently

• Use the timer to warm the room just before you get home and switch off when you don’t need it.
• Set the thermostat to above 18ºC (to combat damp and mould) but below 21ºC (to save power).
• Set it to ‘heating’ mode – ‘auto’ can make the heat pump waste energy by constantly changing between hot and cold.
• When it’s really cold, set the fan to ‘auto’. ‘Low’ and ‘quiet’ won’t give you full blast.
• Heat pumps sometimes blow cold air during very cold weather, to defrost the outdoor unit. This is normal, and it should be back to heating in a few minutes.
• Clean the filter with a vacuum cleaner or warm water every couple of weeks. It’s easy and makes all the difference.

Other things to do to prevent mould and damp:

• Wipe condensation off walls and windows daily.
• Keep the shower curtain hanging inside the shower or bath so water doesn’t drip on the floor, and wash the curtain every few weeks.
• Keep only a few plants inside.
• If you have a mattress on the floor, air the mattress every day by removing the covers and lifting the mattress onto its side. Consider getting a bed base that allows air to circulate.

If you’re doing all the right things, and the house is still damp and mouldy, talk to your property manager.
Source: https://genless.govt.nz/for-everyone/

Fix your credit score in 5 simple steps

How credit scores work

In New Zealand, there are four credit reporting bureaus that track both positive and negative credit history. Any time you apply for credit – a personal loan, car loan or credit card, even your electricity or home phone account – that information is stored in your credit report. Missed or late repayments lower your credit score, whereas paying on time and in full improves your credit score.

Step 1: Know your credit score

The logical first step is knowing what your credit score is so you have a clear idea of what’s helping improve it and what’s hurting it. It’s a good idea to check your credit score at least once a year and before you apply for any major credit. You can request a free copy of your credit report at any time by visiting one of the following websites:
Equifax
Illion
Centrix
Credit Simple

Step 2: Report any errors

For any errors you find on your credit report – such as a default you didn’t incur or a credit purchase you didn’t make – contact the credit reporting bureau or the lender that reported it. They will then investigate the error, come back to you with an outcome, and remove the negative incident if it’s found to be an error.

Step 3: Get back on track

Your credit report helps lenders decide whether or not to lend to you again. It provides a big picture look at your spending and repayment habits, and helps them predict how you will likely manage repayments in the future. Your credit score can also influence what interest rate you’re offered, and that could mean you miss out on the most attractive interest rates if your credit score isn’t what it should be. So, if you have missed repayments or made late repayments in the past, it’s essential you get back on track again, right way. Schedule your repayments on time, pay more than the minimum balance if you can, and consider a debt consolidation loan if you need help consolidating all of your debt into one manageable loan repayment.

Step 4: Pay on time and in full

Once you’ve cleared up any errors and taken further steps to get back on track again and minimize any more damage to your credit score, you can start building your credit score back up again. The best way to do that, is to pay your bills on time and to clear your debt in full. Set up direct debits and automatic payments to ensure you don’t miss a repayment by mistake.
Step 5: Apply for credit
Another way to help build your credit history -and prove to lenders that you are responsible and able to manage your repayments – is to only apply for credit you need and consistently manage a healthy level of debt. That means avoiding debt that could lower your score – like quick cash loans, pay day loans or high interest credit cards – and applying for credit that actually boosts your credit score – such as home loans, personal loans or car loans.

Start today

There’s no better time than right now to start fixing your credit score. For more information about credit scores and how they impact your ability to borrow, take a look at the Consumer Protection website. Contact a Mortgage Express branded mortgage adviser if you need help accessing home loan finance, but you’re concerned about your level of debt and credit score. Our team of advisers can work with you to help you plan your financial future.
Source: https://www.mortgage-express.co.nz/blog/fix-your-credit-score

Changes to the Healthy Homes Standards Finalised

The Government has amended some of the Healthy Homes Standards for rental properties through the Residential Tenancies (Healthy Homes Standards) Amendment Regulations 2022.

Amendments include changes to the heating requirements to reflect the higher thermal performance of new homes built to the 2008 building code requirements for insulation and glazing and certain apartments, as well as other minor changes to the ventilation and moisture ingress and drainage standards.

Changes to the Heating Standard

The changes to the heating standard will generally allow smaller heaters to be installed in homes built to the 2008 building code requirements for insulation and glazing and apartments. Landlords of new homes built to the 2008 building code requirements for insulation and glazing and certain apartments now have until 12 February 2023 to comply with the heating standard.
The original heating formula remains suitable for most of the rental properties in New Zealand. Buildings which are not apartments and are not built to the 2008 building code requirements for insulation and glazing still need to comply with the original Healthy Homes Standards heating requirements.

Heaters installed prior to 1 July 2019

The Government is allowing electrical heaters to boost the heating capacity to what is required when qualifying heaters installed prior to 1 July 2019 are short of capacity by 2.4kW or less, rather than 1.5kW or less. The trigger point to top up or replace existing heating installed before 1 July 2019 has been revised to existing heaters that are at 80% of the required heating capacity, instead of 90%. Over time, as heaters need to be replaced due to wear and tear, they will need to meet the full requirement of the heating standard.

Clarification to the heating standard if the landlord is not the owner of the whole tenancy building

A minor change to the heating standard has been made to clarify situations where the landlord is not the owner of the whole building and cannot meet the heating standard. If the required heating capacity is over 2.4 Kw, a landlord must install at least one qualifying heater that has a heating capacity of at least 2 Kw. A fixed electric heater with a thermostat is an acceptable heater for this situation.

Changes to the Ventilation Standard

Amendments now support the use of continuous mechanical ventilation which extracts moisture to the outdoors from kitchens and bathrooms.

Clarification to the Moisture Ingress and Drainage Standard

Landlords are not required to install alternative moisture barriers where installation of a polythene barrier isn’t reasonably practical.

Key Healthy Homes Compliance Dates

• Rental properties must comply with the healthy homes standards within 90 days of any new or renewed tenancy.
• All boarding houses must already comply with the healthy homes standards.
• From 1 July 2024 – All rental homes must comply with the healthy homes standards.

If you are concerned about your rental property not meeting the healthy homes standards, reach out to your Harcourts Property Manager who can advise you of the compliance date for your property, and if anything can be done in the interim to make the property drier and healthier.

Source: https://www.hud.govt.nz/about-us/news/changes-to-the-healthy-homesstandards-finalised/