Concerned about what happens if tenant damage occurs? We discuss the changes from the Tenancy Tribunal which can end up costing you money, not your tenant! Learn what to do if your tenant damages your rental now.
Intentional or not, who pays for tenant damage of a rental property is making North Shore and Auckland landlords worried. The recent case of Holler and Rouse verses Osaki demonstrated that the Court of Appeal will not hold tenants responsible for accidental damage. AMI, the landlord’s insurer, sued Mr Osaki, the tenant, who left a pot of oil unattended on the stove, causing over $216,000 damage to a rental property. The Court of Appeal decided that the tenant was not liable due to a new Tenancy Tribunal rule: if damage was due to carelessness and not deliberate or criminal, and the landlord has insurance, the tenant is not liable for the costs of the damage.
So where does this leave you when it comes to tenant damage at your rental? Let’s find out.
The Low Down About Tenant Damage of Your Auckland Rental
Before April 2016, when it came to tenant damage caused either intentionally or carelessly, the tenant was liable for the full cost of repair. However, the Holler and Rouse verses Osaki case made it clear that the tenant was not liable if certain aspects from the Property Law Act 2008 were met. This means that nowadays, the Tenancy Tribunal will not hold a tenant liable for any damage caused negligently or carelessly where the landlord has insurance.
While tenants are still not permitted to cause damage intentionally or by carelessness, you are liable for the cost of the damage they cause if you are insured. While this may see the cost of rental property insurance rising, it’s imperative you have a solid insurance policy on your rental.
My Tenant Has Damaged My Rental – What Do I Do?
Your tenant is required to notify you or the property manager as soon as reasonably possible after the damage has occurred. Serious damage which can impact upon the safety of others or can further damage the property itself must be reported immediately.
If the required repairs are urgent, the tenant can have the work done and then ask you to pay for it. Otherwise you are responsible for arranging professional tradespeople to undertake the repairs on your behalf. If the tenant did the damage on purpose and your insurance won’t cover it, you can ask them to fix the problem themselves. Called a 14 day notice to remedy, both sides can issue this request for repair work.
If this doesn’t sound like your cup of tea, don’t worry. Let us do it all for you! As property mangers within the wider Auckland region, we’ll be the ones on call dealing with any issues with your rental on your behalf. We’ll also help you attract great tenants which reduces the chances of damage occurring too! Get in touch with us now and let’s get your Auckland rent.
Comments are closed.