Bad news for unconsented garage conversions: renting unlawful premises has become much harder due to changes in the Residential Tenancies Act. If you’ve added a small kitchen and bathroom area into your garage to rent it out, stop. If a building is not consented for residential use, you can’t rent it out. This includes any buildings or parts of a building within a property, such as garage conversions and rooms which don’t have consent.
With the rental shortage in Auckland encouraging many landlords and in some cases their tenants to think creatively, there’s no such thing as an easy solution. Renting unlawful premises may bring in cash and help someone in need of housing, but they legally should not be rented.
A High Court decision in 2017 found that the Tenancy Tribunal has no jurisdiction over an unlawful premise, as by law, it can’t be rented. As a result, if the landlord or tenant has any disputes, the Tenancy Tribunal cannot assist. The exception is though, that it can order a full rental refund for a tenant. This is because renting unlawful premises is prohibited under the Residential Tenancies Act.
What to Know About Renting Unlawful Premises
While it remains tempting to rent an unconsented building, the risks are too great. Not only is it illegal, but such a landlord faces criminal prosecutions for doing so. In 2017, a Manurewa landlord was forced to pay a previous tenant over $16,000 in rent and damages. The landlord had rented an unlawfully converted garage as a single household unit. The landlord was also forced to remove the unconsented building works and return the garage back to its original state.
Not only did the conversion but have building consent, but it also posed a serious health and safety risk too. Steve Watson, Manager of the Tenancy Compliance and Investigation Team commented about this conviction by stating, “The Tribunal decision should serve as a serious warning to landlords that they are running a business, and it is their obligation to get it right, providing a warm, dry and safe home for their tenants. There are significant consequences for landlords who fail to meet their obligations, and we will not hesitate to crack down on poor landlord behaviour."
To prevent such a situation happening with your rental property, be sure to check that it has all the necessary consents before renting it out. If you are unsure, we can help. Get in touch with our team of Auckland property managers and arrange a free rental appraisal for your property today.
Comments are closed.