- What is a PCBU?
- We would like to rent our house without whiteware, would this be an issue? Would it affect rental price?
- Who is responsible to maintain the lawn and gardens?
- There’s been a lot of stories in the news about rental properties used in manufacturing methamphetamine. How would you monitor and stop this from possibly happening?
- How much notice does a tenant have to give to end a tenancy?
- How do you screen potential applicants?
- How does rent collection work? What if a tenant is late with rent?
- Do you take a bond off tenants?
- How do you handle maintenance issues? Are you on call 24 hours if there is an emergency at the property?
- How often will you visit the property/complete inspections?
- What happens if tenants cause any damage?
- What is your policy if there is a group of tenants living in my property?
- What's the best way to get in touch with Click?
What is a PCBU?
If you do something for hire or reward, such as let out your property to a tenant in return for rent, service, or some other form of payment, you are deemed to be a “PCBU” (Person Carrying out a Business or Undertaking).
As your Property Manager, Click Property Management is a PCBU. As a Landlord, you are also a PCBU. Together, we have a joint responsibility to ensure everyone working on the properties we manage are appropriately qualified and have their own Health & Safety systems and processes in place.
Where Click fully manages your properties we will collect this information directly from any contractors we engage. You can request to see this information if you wish.
Under the Act, Click Property Management is no longer able to permit any work to be completed by any Landlords, unless you are appropriately qualified, insured and competent to do that task.
We would like to rent our house without whiteware, would this be an issue? Would it affect rental price?
No, this doesn’t usually affect rental price and most tenants tend to have their own whiteware. In saying that, if cabinetry was specifically sized and wouldn’t fit standard sized machines this may be a good option to consider. If it was a deal breaker for a potential tenant, to have white ware supplied, we can advise you of this.
We would recommend keeping in mind that any chattels left by you as the landlord are your responsibility to maintain for the full duration of tenancy, unless your tenant agrees for this not to be replaced.
There are also options for tenants to rent whiteware if they don’t have their own, or for you to "gift" whiteware or chattels to tenants if you do not wish to be obligated to maintain or replace them. However, this must be agreed to prior to commencement of tenancy.
Who is responsible to maintain the lawn and gardens?
Generally, tenants are responsible to maintain gardens and lawns.
Owners are required to maintain hedges, pruning of trees or specialty plants, shrubs and weed spraying.
We would recommend that owners maintain the full section if there are a lot of plants/hedges that require pruning and plant maintenance. This can be a negotiated cost at the start of the tenancy to help offset your cost. And, keep in mind the cost to have a gardener maintain from the start, may out-weigh the cost of plants dying after being pruned out of season and the cost to replace plants if not cared for during a tenancy.
There’s been a lot of stories in the news about rental properties used in manufacturing methamphetamine. How would you monitor and stop this from possibly happening?
This is becoming a more apparent problem in the North Island and will make its way to Dunedin.
There is a company called "Betta Inspect It" that we recommend and they will complete basic tests on properties from $159+GST. If an initial positive result is found there are further costs for a more in depth test.
If a property is tested from the start, checked between any and all tenancies and no contamination is found, this means that you as an owner have taken all practicable steps to mitiagate risk to your property. We believe this will help you in the future in the unlikely event of a positive test and consequential insurance claim in the future. Please note: some insurance companies do require meth testing as part of your policy conditions. We would recommend checking your policy carefully.
If you are worried about the level of cover your current policy provides, we would recommend speaking with REAL Landlord Insurance. They are backed by QBE Insurance and give landlords additional insurance for their tenancy including loss of rental income and intentional damage cover.
How much notice does a tenant have to give to end a tenancy?
We recommend fixed term tenancies. This means that both you and tenant have security that there is a tenancy agreement in place where both parties are aware of agreed rents and that they start and end on specific dates.
If a periodic tenancy is in place tenants only need to provide 21 days’ notice to leave. This isn’t a long time to secure a new tenant if your tenant does choose to move on (or security for the tenant if your circumstances change). Landlords are required to provide either 42 or 90 days’ notice (depending on the reason for ending the tenancy).
In some extenuating circumstances a tenant may need to break a fixed term lease. If this is the case the costs incurred are passed onto tenants.
How do you screen potential applicants?
We ask for current and previous landlord details, employment references (to ascertain how weekly rent will be paid) and we ask for a further 2 character references.
We also complete credit checks and background checks, including through the Ministry of Justice and any previous Tenancy Tribunal activity. We also check social media and other online activity.
How does rent collection work? What if a tenant is late with rent?
We have zero tolerance for rent arrears. We state in our tenancy agreement that rent is to be paid in advance and we serve Breach Notices to tenants after 3 days of their rent being in arrears. Tenants are texted and called by the Property Manager daily in the interim.
Our accounts manager checks and receipts rent each working day. Our stringent systems means our rent arrears are kept very low and manageable. It also shows when the wheels are starting to fall off with tenants so can act promptly and apply for mediation/termination of a tenancy if required.
Also, by having REAL Landlord Insurance, this will ensure that you are paid if a tenant does stop paying rent once a successful Tenancy Tribunal Order is received.
Do you take a bond off tenants?
Unless agreed otherwise, we take the maximum bond that we can which is 4 weeks equivalent of the weekly rent.
This is then paid to Tenancy Services who hold the bond until it is mutually agreed to release at the end of the tenancy. If all rent is paid until the end of tenancy, no damage has occurred and the house and section have been left in a clean and tidy standard as per their obligations under the Residential Tenancy Act, then the bond will be refunded in full to the tenants. Otherwise, we will seek costs to remedy the issues found, and/or lodge an application at the Tenancy Tribunal if instructed.
How do you handle maintenance issues? Are you on call 24 hours if there is an emergency at the property?
We put a lot of onus on the tenants from the start of tenancy to let us know if there is maintenance required. We have an online tenant portal which enables tenants to lodge maintenance as it occurs, and to include photos and information on the maintenance or repairs required.
If we have approval of an Owner to go ahead and complete on their behalf, we will organise for maintenance to be being handled within a discretionary spend limit as determined between Click and owner, or act on an emergency repair immediately to mitigate risk to your property. Should the repair be deemed "non-urgent" or we do not have a discretionary spend authorised we will refer this onto you as the owner for your instruction.
We also have after hours’ contractors available to contact for emergency repairs.
How often will you visit the property/complete inspections?
We complete routine inspections at regular intervals throughout the year, at least 3 times per year, plus a thorough entry and exit inspection at the start/end of every tenancy. NB: we cannot legally inspect any more than once a month. If we have found reason to breach a tenant during a routine inspection, we will re-inspect in 14 days and continue to do so until the issue is rectified.
What happens if tenants cause any damage?
We complete thorough Entry Inspection Reports and take anywhere between 200-500 photos (depending on the size of the property). We also provide a copy of this report to the tenants. Our preference is to complete all entry and exit inspections without tenants being present so that we can methodically move through the property room by room without distractions. Because we complete such thorough inspection reports it is evident at the end of a tenancy if damage has occurred. This is also a benefit to tenants as it safeguards them from any pre-existing damage that may have occurred before their tenancy commenced.
If damage has occured at the end of a tenancy and we cannot reach an agreement with the tenants to rectify, then we will lodge an application at the Tenancy Tribunal for costs. The outcome of this is determined by the independant adjudictor.
What is your policy if there is a group of tenants living in my property?
We ask the tenants to nominate one person to be "head tenant" who is the point of contact responsible for paying the rent and advising us of maintenance. It is our policy to only accept one full payment of rent each week (rather than individual tenants paying separate amounts).
All tenants sign a tenancy agreement advising them that they are jointly and severally liable for the property and for any debt incurred during the tenancy.
Should any of the tenants living at the property change during the tenancy, they must complete a Tenancy Variation Agreement to reflect this change and Change of Bond form to remove their obligations from the tenancy, once approved by Click and remaining tenants. Any additional occupants must complete an application form and be approved to join the tenancy.
What's the best way to get in touch with Click?
The best form of contact with our office is via email. Our property management staff are often out of the office conducting inspections or in appointments. Otherwise for an instant response during office hours, you can ring our office.
If you are local or would like to meet us in person we would love you to do so. However, we would recommend arranging an appointment time to make sure we are available to see you.