Property Brokers Property Owner’s Guide by Property Brokers Creative

Property owner’s guide A comprehensive guide of what to expect for owners and investors

pb.co.nz Property Brokers Ltd Licensed REAA 2008

Contents Section 1: Renting your property Maximising your rent

Marketing your property

Property presentation and preparing for new tenants

Getting the right tenants

Tenancy agreements

Pet agreements 07 Bond 07 Receiving rent payments

Property inspections

Repairs and maintenance

Vacating the property

Insurance, insulation and testing

Selling or moving into your property

Selling the property on your behalf

Financial statements

Service guarantees 14 Section 2: Tenancy legislation Owner rights and responsibilities

Tenant’s rights and responsibilities

Residential Tenancies Amendment Act 2010

Section 3: Service standards Service standards 20 Cleaning guide 22

Thank you for choosing Property Brokers as your property management specialist.

Property Brokers is managed by local people, passionate about their town or city, who are committed to contributing to the health and well-being of their local communities. Proudly. Passionately. Everyday.

We stand behind our service, offering a three point Service Guarantee to give you absolute peace of mind with your investment property. The Property Owner’s Guide is a comprehensive guide to Property Brokers property management processes and procedures, and your expectations to tenancy management. We ask that you become familiar with its contents, however, if you have a query that is not answered, please contact your local Property Brokers branch.

SECTION

Renting your property

Maximising your rent How to determine the best rent for your property? We always strive to achieve the maximum rent possible. However, it is also important to consider the current market when setting the rental rate. This will assist you in getting your property tenanted quickly. To do this, consider these factors: a) Demand Is there a high or low demand for properties at present? This can be seasonal and affected by a number of factors. b) Availability We look at properties currently available for rent, and consider their location and features for comparison to calculate our recommended rent for your property. c) Current rentals We compare your property with other properties currently rented, taking into account property location and features. d) Condition of property Does it comply with current legislations does it have functional smoke alarms? Is it insulated, warm, dry, safe? These factors allow us to give you enough information to set the appropriate rent for your property.

What if you want a higher rent amount? We may place your property on the market at the rental amount you wish. However, keep in mind that it is the market demand that sets the rent. If the market (prospective tenants looking for a rental property) deems the amount of rent too high, your property may stay vacant longer than necessary. Be aware your annual rental return will be reduced by 2% for every week it sits vacant. The service guarantee will not be available with properties that are advertised over the market rental appraisal amount. How is the rent reviewed during the time your property is managed? When new tenants are secured or on an annual basis, we will review the rent against the current market conditions. We will always advise you when we recommend a rent increase and get your approval first.

Marketing your property

Property presentation and preparing for new tenants

How do we advertise your property?

To attract the best tenants, your property should be presented in the best possible manner and ‘reasonably clean’ in accordance with legislative requirements. A bad first impression may detract the right tenants from renting your property.

Once a Management Authority has been signed authorising us to act on your behalf, we will market your property in the following ways: 1. Online Your property listing, including photos, will be uploaded onto the following websites: pb.co.nz realestate.co.nz oneroof.co.nz This will maximise the coverage of any tenants searching online for available rental properties. We consider these websites to be the best in New Zealand. We continuously optimise our website to ensure it is at the top of search engine results for rental properties across provincial New Zealand. 2. Print ads We use local newspapers and publications where appropriate. 3. Rental list Your property is added to our weekly rental list. This list is given to anyone who comes into our branches seeking a rental property, and is emailed to our extensive database of prospective tenants. 4. Window display cards Details of your property and a photo are presented either on a display card or on our digital touch-screens in our branch offices. 5. For rent signs A ‘For Rent’ sign may be displayed outside the property. We will discuss suitability on a case by case basis.

As a general rule we ask the tenants to leave the property in the state they found it in accordance to our cleaning checklist. The Residential Tenancy Act states it needs to be ‘Reasonably clean and tidy.’ If it is you who has been living in the property and you are now going to rent it out, you need to attend to these details yourself and leave the property in the same condition as an outgoing tenant. In cases where the property is provided in an extreme level of cleanliness we ask the tenants to leave the property likewise. A copy of our cleaning checklist can be found on page 22 of this booklet.

Preparing for new tenants If you have existing tenants vacating your property or if you have been living in the property prior to renting, we recommend the property is prepared as per our below guidelines to set the standard of how the property should be left at the end of each tenancy. Mail: Ensure the previous tenants have arranged for their mail to be redirected to their new address. Utilise moovme.com Utilities: Ensure the occupant advises and cancels all utility suppliers (electricity, gas, phone etc.) and the accounts are settled accordingly. All light bulbs should be checked and in working order. Appliances: Ensure a copy of all appliance manuals for any specialist equipment are left at the property and that all appliances are in good, working condition. Keys: Ensure all locks on your property have keys and provide us with two full sets (one for our office and one for the tenants). Smoke alarms: Photoelectric smoke detectors with long-life batteries must be installed and a compliance certificate obtained at the beginning of each new tenancy. Servicing appliances: All appliances must be serviced by a qualified technician regularly, e.g gas appliances, fireplaces, heat pumps, etc. Moving: Property Brokers can recommend MoovMe as a way of transferring or setting up utilities, plus other helpful services. 5

Getting the right tenants How do we find tenants? After we have advertised your property, we arrange scheduled property viewings to show interested people through the property, (we do not give keys out to prospective tenants). We utilise excellent technology to ensure all enquiries are responded to 24/7. If tenants would like to be considered for your property, they are required to complete our application form and provide all necessary documentation and references. We will update you on the status of your available property weekly. In the event that prospective tenants contact you to discuss their application, or asks questions regarding their rejected application, we advise that you request they contact us (your property managers). What checks do your Property Managers run? With the information provided, we confirm the tenant’s payment and tenancy history by contacting their current and/or previous landlord/property manager. We check against a national database to see if they have been lodged as bad tenants by a previous property manager, or have an unsatisfactory credit history. In some cases where an applicant may not have a tenancy history, we try and confirm other information that may give us an insight into their ability to maintain a tenancy (e.g. a stable employment history). Where this is not possible, we may simply reject the application. 6

Tenancy agreements Under the new Privacy Guidelines; only the preferred candidate is thoroughly checked to determine whether they are suitable for the property. Specific checks can be done prior to selecting the preferred candidate, and once a suitable applicant is determined; further checks can be done. Property Brokers works to a specific process to ensure that we always observe the Privacy Guidelines while ensuring that the right tenants are selected for the property. For further information about the Privacy Guidelines, and screening process, visit the Privacy Commissioner website https://www.privacy.org.nz/news-andpublications/guidance-resources/privacy-actguidance-for-landlords-and-tenants/

Who selects the applicant for your property? Your property manager will carry out the necessary checks and using the information that we have collected, will make a recommendation to you. The final say on who is selected is of course yours, unless you specifically delegate that responsibility to your property manager. If you are unsure about the suitability of the tenants during the selection process, we do recommend you leave your property vacant longer rather than take the risk and accept unsuitable tenant(s) to fill the property quicker.

What do the tenants sign? The tenants are required to sign a Tenancy Agreement which is prepared by us. This includes details of the tenancy and terms and conditions including a Pet Agreement if required. The tenants also complete and signs a Bond Lodgement Form and Entry Inspection Report. A copy of the Entry Inspection Report signed by both parties is provided to the tenants and filed by us. When do the tenants take possession of your property? Tenants take possession of the property once all forms have been explained and signed, bond and rent in advance monies paid, an initial inspection report completed, meters read and inspection photos taken. They do not move in prior to the start date on the agreement. What do we explain to the tenants before they move into your property? We ask that all tenants attend a tenant induction where we discuss in detail our expectations of them as tenants prior to moving in. These expectations include paying rent on time, where to pay the rent, and what happens when the rent is not paid. We discuss the repairs and maintenance policy, what happens in an emergency repair situation and how often inspections occur and what we look for during inspections. We provide all tenants with a ‘Tenant Kit’ which contains all relevant information such as electricity and telephone provider contact details, and who to contact in an emergency.

Pet agreements

Bond

If permission is granted to keep any animals at the property, we ensure the following criteria and obligations are met:

How much bond are tenants required to pay?

a) No additional pet or animal may occupy the property without prior permission.

The Residential Tenancies Act permits a bond of up to four weeks rent. A bond equivalent to four weeks rent is our standard bond.

b) If a pet becomes annoying or bothersome to neighbours (after reasonable warning has been given in writing), it must be removed from the property.

Once paid, the bond is lodged with Tenancy Services – Ministry of Business Innovation and Employment within 23 working days where it will remain for the duration of the tenancy.

c) The tenants may be liable for any damage caused by their pet to the interior or exterior of the property.

What happens to the bond at the end of the tenancy?

Details of any approved animals are recorded on a ‘Pet Agreement’ which is part of the Tenancy Agreement and is signed by the tenants. This document includes all terms that have been agreed upon and any rules that must be abided by i.e. dogs must be kept outside at all times.

a) The tenants have fully vacated the property and all keys have been returned.

As these terms can be difficult to monitor, we recommend that a ‘no pet’s policy’ is adhered to if you have any concerns.

We will submit the completed bond refund form to Tenancy Services once the following requirements have been met:

b) The property has been inspected and is satisfactory when compared with the initial commencement inspection report. c) All rent is paid up until vacate date. Refunds usually take two to three working days to process. If there is unpaid rent, damages or anything else left undone, you may agree with the tenants to split the bond. Part of the bond will be refunded to you to cover the costs and the balance is refunded to the tenants.

Receiving rent payments We collect rent payments through direct deposit to our trust account from the tenants by automatic payment, telephone or internet banking. We deposit all monies collected into your nominated bank account either twice each month, or once a month (whichever option you have specified). If this day falls on a weekend or public holiday, payment will be made on the next business day. What happens when tenants fail to pay the rent? If the tenants fail to pay the rent, we will initiate our rent arrears process which is as follows: 1-2 days behind – A text message or phone call will be made to the tenants to advise that their rent is overdue and request immediate payment. If we are unable to contact them, a letter requesting immediate payment is sent. If the tenants do not contact us to make arrangements, or arrangements are not adhered to, a 14 Day Notice will be issued to make payment or further action through Tenancy Services will be undertaken. 3-5 days behind – A 14 Day Notice is issued and if the tenants fail to comply, this will result in an application being filed for ‘Termination of Tenancy’ under Section 56 of the Residential Tenancies Act.

If the rent is 5 working days behind a regular rent arrears notice is issued. If there are 3 regular rent arrears notices issued in a 90 day period, an application for termination will be filed with the Tenancy Tribunal. The time taken to achieve termination can vary according to the length of time the Tenancy Tribunal takes to arrange a hearing. In some cases, this can take over two weeks and as your Property Managers, we will represent you at the Tenancy Tribunal if the case gets this far. The above is done provided that: a) The rental property was initially let by Property Brokers; and b) The rental property must have a minimum of four weeks bond lodged with Tenancy Services; and c) Property Brokers must be able to conduct the rental arrears process using our normal rent arrears procedures. The Service Guarantee relates only to rent losses and does not include compensation for property damage or loss in property value.

What happens if the property becomes uninhabitable or the tenants absconds? The Service Guarantee applies only when there is tenants in place paying rent. If something happens that makes the property uninhabitable, or if the tenants abandon the property, we strongly recommend that you have owner insurance to cover those instances.

Sec 145 Schedule 5 (Residential Tenancies Act) Provisions relating to the outbreak of Covid-19 may apply during the tenancy and or, an area of the tenancy. Should the Minister enact a “switch on date” for this provision of the Act, notices provided by either party, or, orders by way of the tribunal, or, reason(s) for termination under the Residential Tenancies Act may be suspended until such time as the Minister removes restrictions imposed under Section 145.

Property inspections Prior to any tenancy commencing, a thorough property inspection will be conducted. We will inspect every area of your property and record details of the condition and cleanliness. This involves recording any marks, scratches and dents etc. A detailed photographic report will coincide with the written report to ensure condition is thoroughly recorded.

How often will the property be inspected? We prefer to inspect the property at 1316-week intervals, however the number of inspections can be dependent upon the owner’s insurance policy as the insurance company can stipulate how many inspections are required per year. These inspections are not as detailed as the commencement inspection at the beginning of the tenancy and are more of a walk through, checking room by room that the tenants are keeping your property damage free and reasonably clean and tidy. We take note of any maintenance issues and recommendations needed to assist in keeping your property in the best possible condition. A copy of the inspection report complete with photos and any findings will be emailed to you following the inspection. If there are any immediate concerns, we will contact you as soon as possible.

We take note of any maintenance issues and recommendations needed to assist in keeping your property in the best possible condition.

Final inspection Once the tenants have fully vacated, we will conduct a final inspection and compare the property to the commencement inspection report. We carefully check through the report item by item, ensuring it has been left in the same condition as when they moved in, taking into account reasonable wear and tear for the period of time they have lived at the property. We ensure your property has been left reasonably clean and tidy and when necessary, that the carpets have been professionally cleaned. Further to the initial inspection a detailed report consisting of images and written observations is completed.

Repairs and maintenance Under legislation, it is the responsibility of the owner to repair and maintain the property. By law, it is also the tenants responsibility to report any maintenance as soon as they become aware. Unlike many agencies, Property Brokers provide a centralised maintenance service free of charge to our clients. We have a team dedicated to the regular maintenance of properties using verified suppliers, supporting our property managers and allowing them more time to look after your property and tenants. Our maintenance system is accessible to all parties and is an easy to use solution to keep all parties informed or alternatively, you can speak directly with a Centralised Maintenance Expert (CME) to discuss any maintenance. General wear and tear is expected and legislation provides that it be allowed as this will occur over time. However, tenants can be held responsible if wear and tear is considered ‘excessive’ for the time frame that the tenants have lived in the property. If tenants are proved to have caused damage to your property or any fixtures and chattels that is not the result of normal wear and tear, this will be on-charged to the tenants. Normally, a tradesperson will advise if the repair was normal or was influenced or caused by the tenants.

Who maintains the lawns and gardens?

Electricity and gas

Unless otherwise agreed, the tenants are responsible for maintaining the lawns and gardens to ensure they are neat and tidy, removing weeds and lawn clippings.

Electricity and gas charges are at the tenants expense and usually include the supply charge. When a property has bottled gas supplied, the tenants pays for the gas contained in the bottles, however, the owner is responsible for the charges relating to the gas bottle rental and service.

Roof, gutters, trees and shrubs? According to legislation, it is the owner’s responsibility to ensure roof gutters are cleared and any large trees and shrubs pruned. If required, we can arrange for a gardener or tradesperson to do these on your behalf. These jobs all need to adhere to the Health and Safety Act 2015 and council consents and compliances. Pest control Day to day pest control is the responsibility of the tenants however, if the level of infestation is excessive then the owner should employ the services of a pest control company to assess the situation.

Fibre connection Often tenants will request fibre if it is not installed at the property. If it is a free-standing dwelling, Chorus, or any other approved installer will do it at the tenants request. If tenants want it installed they must seek permission. If it is installed the connection becomes a ‘fixture’ and is to remain at the end of their tenancy.

Vacating the property Smoke alarms

Notice

Breaches of tenancy agreement

It is now mandatory for long-life photoelectric type smoke alarms to be installed in your property and legally, they should be installed within three meters of every sleeping space and be audible to sleeping occupants behind closed doors. These alarms provide 10 years of smoke detection; however, they must be thoroughly checked and ideally have a compliance certificate issued by a professional at the commencement of each new tenancy and serial numbers recorded for insurance purposes. We also offer a service to have these checked annually for peace of mind.

The amount of notice tenants must give to vacate your property depends on the type of lease they have signed.

Depending on what tenancy breach has occurred determines largely on what action is taken. If the breach is minor (such as a dirty oven or unmown lawns), approaching the tenants verbally or in writing may be appropriate.

During the tenancy, it is the tenants responsibility to maintain the smoke alarms, such as replacing batteries if these are required. The alarms can not be tampered with outside of regular maintenance and servicing.

Periodic tenancy – a minimum of 28 day’s notice must be given in writing. Fixed term tenancy – At the end of the lease period the tenants may choose not to renew the tenancy, and vacate the property. They are required to give notice of their intentions between 90 and 28 days prior to the end of the lease. If the tenants break their lease or ask to vacate before the end of the lease period, they are liable for paying the rent until new tenants is secured, or until the end of the lease period (whichever occurs first) and the tenants will be charged a re-marketing fee.

If the breach is serious, we will consult with you first to discuss what action to take.

When the tenants gives notice that they will be vacating the property, we send them our cleaning checklist which outlines our expectations of how the property should be returned. We will re-advertise the property at the earliest opportunity.

Insurance, insulation and testing We recommend you have comprehensive insurance for your rental property to cover every eventuality and reduce your risk as a landlord regardless whether you use an agency or not. Owner Insurance covers unusual situations that could cause damage or loss of your property, or make you personally liable. A tenants circumstances can change and the tenancy can become unstable at any time which can result in rent arrears, your property being damaged or not maintained, or the property being abandoned. It is important for you to understand what your Owner Insurance policy covers. There are three types of policy – House, Landlord, and Statutory Liability. Please consult with your insurance company or broker to ensure you are aware of the extent of your cover and the relevant obligations and excesses that apply. It is important to speak with your insurance provider to determine if your existing cover is sufficient.

Insulation requirements Insulation is compulsory in all rental homes as of July 2019 and ceiling and under floor insulation must be installed where it is reasonably practicable. Landlords who fail to comply with the regulations may be liable for fines up to $7,200. Landlords must disclose the extent of insulation in their properties and include an insulation statement as part of all new tenancy agreements. A landlord who does not make a complete insulation statement or includes anything they know to be false or misleading is committing an unlawful act and may be liable for a penalty of up to $750. Our property managers can help you manage these requirements to ensure your property is compliant. Testing for contamination It is recommended that your property is tested for any type of contamination if it is suspected that there maybe a positive result. This includes asbestos, lead paint, methamphetamine or black mould.

Owners will automatically receive access to our owners portal which gives you access to your account at any time.

Selling or moving into your property

Can we sell the property on your behalf?

Financial statements

You may sell your property or move back into your property at any time. If you choose to sell, written notice must be given to the tenants of your intent to sell by your property manager. The length of notice required is determined by the type of tenancy that has been signed.

As Property Brokers is a full service real estate company, we can list your property for sale.

We will issue you with monthly and annual financial statements, accounting for all monies we have handled and disbursed to you, or on your behalf, in accordance with legislative requirements.

Fixed term tenancy If you choose to sell or move into your property while the tenants are on a fixed term tenancy, you must honour the fixed term and wait until the end of the period unless the tenants agree otherwise. Periodic tenancy The tenants must be given 90 days written notice to vacate the property, from the time the sale contract becomes unconditional.

You can nominate a preferred sales consultant, or we can ask a member of our sales team to contact you directly. As everyone is under the same roof, we can easily manage this process for you in-house and liaise directly with your tenants and prospective buyers. As an existing Property Brokers customer, we can also offer a discounted commission rate.

You will receive monthly statements at the beginning of each month together with any tax invoices from tradespeople or from other disbursements paid on your behalf during that month. An Annual Income and Expenditure Statement will be sent out each April following the end of the financial year. Information on how to read and understand your rental statement is available upon request. If you misplace a statement and require a copy, we will issue you with another at no charge. 24/7 access to financial information Details of how to access and navigate your way around this system will be sent to you via email.

Property Management Service Guarantees

Property tenanted, or we’ll pay

No rent arrears, or we’ll pay

Receive great service, or we’ll pay

If we have not signed up a tenant for your property within 28 days of it being available, we will pay the rent.*

If your tenant won’t pay the rent, we will.*

We pride ourselves on our great service. If you are not happy and we cannot resolve the problem, we’ll pay your management fee.*

Service Guarantees – Terms & Conditions Property tenanted, or we’ll pay.

No rent arrears, or we’ll pay.

1. If Property Brokers have not found tenants for your property within 28 days of your property being available for renting, we will pay the rent.

1. The rental property was initially let by Property Brokers; and

2. The property meets the cleanliness standards set out in the Residential Tenancies Act 1986. The property must be reasonably clean, tidy and in a ‘lettable condition’ (as determined by Property Brokers) prior to the commencement of marketing.

3. The arrears guarantee ensures that each month, the owner will receive the monthly expected transfer based on the weekly rental rate if the tenants are in rental arrears.

3. The following criteria will be part of the definition in determining whether or not it is in a ‘lettable condition’.

2. The rental property must have a 4-week bond lodged with the Bond Centre; and

4. The arrears guarantee is for rental payments only. This does not include arrears for utilities, remedial work or any other scheduled payment as outlined within the Tenancy Agreement.

5. The property meets the Insulation Regulations 2016.

5. During a tenancy when Guaranteed Rent payments have been made by Property Brokers and rent is recouped from the tenants this rent money will be apportioned back to Property Brokers in the first instance.

6. The owner meets the Healthy Homes Standards introduced in 2019.

6. Property Brokers must be able to conduct the rental arrears process using our normal rent arrears procedures; and

7. The owner has provided Property Brokers with Insurance information.

7. This Service Guarantee relates only to rent losses and does not include compensation for property damage or loss in property value.

4. The property has photoelectric smoke alarms that are within three meters of all bedrooms.

8. Whether the property meets the minimum requirements of the RTA in any respect. 9. The property is consented, remedial work that has been completed is consented, all liveable areas on the property meet the requirements of the Residential Tenancies Act. 10. The property is not deemed to be a Health and Safety risk. 11. The property is not on the market for sale and the owner does not intend selling it within six months. 12. There are no external factors beyond Property Brokers’ control that will limit the ability to tenant the property e.g Covid Ministerial orders or other factors limiting the appeal of the property, such as the location, neighbours, suburb, etc. 13. Whether the property has been tested or will be tested for the presence of methamphetamine or any other contamination that is deemed to be a health risk. 14. The property must be listed at market rate as determined by Property Brokers and the owner must allow the rent to be reduced as necessary to meet the current market conditions. 15. If the property is still vacant after two months, the property owner agrees to review the Service Guarantee with Property Brokers and consider a new strategy to find tenants or refer the property to Property Brokers for sale.  16. Property Brokers reserves the right to terminate the Service Guarantee at any time if unforeseen circumstances or events occur that affect the guarantee.

8. At the end of the tenancy and when Guaranteed Rent payments have been made by Property Brokers, any monies paid by the tenants either by direct payment or a bond refund will be refunded back to Property Brokers in the first instance. A bond refund in any form will have the rent paid before any other property expenses. 9. Property Brokers reserve the right to utilise the services of a debt collection agency. Any amount collected will initially be paid to Property Brokers where if applicable Guaranteed Rent will be recouped.

Receive great service, or we’ll pay. 1.

If our services disappoint you, simply tell us and if we cannot resolve the service issue, we will refund your last month’s management fee.

The owner must advise us in writing they have a problem; and

Property Brokers expects to resolve the problem within 14 days; and

If Property Brokers does not resolve the problem within the 28 days; then

Property Brokers will refund the last month’s management fee.

17. The Service Guarantee expires should an owner reject an application for tenancy recommended by Property Brokers or;

The Service Guarantees are included within both the ‘exclusive’ and ‘inclusive’ management packages from the 1st of November 2019 onwards. Clients that opted for a package preceding this date that did not include the Service Guarantees, shall continue under the original terms of the Management Authority.

18. If the owner accepts an applicant for the tenancy where the tenants are unable or unwilling to take occupation of the property within the 28 days from the date of signing any tenancy agreement.

Service Guarantees are offered only to clients that opt for full management of a ‘residential’ property only. For any existing clients that do not currently have service guarantees, they can opt to have this service included if they move to the new packages.

19. If the property remains vacant for 28 days after being available to Property Brokers, then Property Brokers will reimburse the owner for rent lost from day 29 until suitable tenants are found for the property.

Service Guarantees are available across the Property Brokers Branches.

*Terms and conditions apply – pb.co.nz/serviceguarantees

SECTION

Tenancy legislation

Owner rights and responsibilities Discrimination to be an unlawful act

Owner’s responsibilities

Sec 12. (2)

Sec 45. (1) The owner shall:

(a) Instruct any person to discriminate against any other person in contravention of the Human Rights Act 1993.

(a) Provide the premises in a reasonable state of cleanliness; and

e.g. A person should not refuse to grant a tenancy to another on the grounds that it is intended that a child should live on the premises. Rent in advance Sec 23. (1) An owner shall not require the payment of any rent: (a) More than 2 weeks in advance; or (b) B efore the expiry of the period for which rent has been paid already. Locks Sec 46. (1) The owner shall provide and maintain such locks and other similar devices as are necessary to ensure that the premises are reasonably secure. (2) Neither the owner nor the tenants will alter or remove a lock or security device or add a lock or security device without the consent of the other.

(b) Provide and maintain the premises in a reasonable state of repair having regard to the age and character of the premises and the period during which the premises are likely to remain habitable and available for residential purposes; and (c) Comply with all requirements in respect of buildings, health, and safety under any enactment so far as they apply to the premises. Allowance for reasonable wear and tear Consideration must be given for the probable effect of reasonable wear and tear when the tenants vacate, as to whether the premises were in a reasonable condition when the tenants first took possession and the term of the tenancy. Owner right of entry Sec 48. (1) The owner shall not enter the premises during the currency of the tenancy agreements except: (a) With the consent of the tenants. Sec 48. (2) The owner may enter the premises: (b) In any case of emergency; or

(c) F or the purpose of inspecting the premises. At any time between 8am and 7pm on a day specified in a notice given to the tenants no less than 48 hours before the intended entry and not more frequently than once in any period of 4 weeks; or (d) F or the purpose of carrying out necessary repairs or maintenance of the premises at any time between 8am and 7pm of any day, after giving the tenants notice of not less than 24 hours before the intended entry. Sec 48. (3) For the purpose of showing the premises to prospective tenants or to prospective purchasers, the owner may with the prior consent of the tenants (which shall not be unreasonably withheld) and subject to reasonable conditions as the tenants may attach to that consent, enter the premises at any reasonable rate. Breaking Lease Conditions - If a tenant wants to break their fixed-term tenancy Please note - The Residential Tenancies Act 2021 allows for an assignment of tenancy - this may depend on the date the tenancy commenced. We recommend discussing this with your property manager.

If tenants break their fixed term lease and vacate the property, they will be required to pay rent until a new tenants take possession.

Tenant’s rights and responsibilities Mitigation of damage or loss

Sec 40. (1) The tenants shall:

Sec 40. (2) The tenants shall not:

Sec 49. Where any party to a Tenancy Agreement breaches any of the provisions of the agreement or of this Act, the other party shall take all reasonable steps to limit the damage or loss arising from that breach.

(a) Pay the rent on time

(a) i ntentionally or carelessly damage, or permit any other person to damage, the premises; or

Termination by notice (in writing) Sec 51. (1) An owner may give notice to terminate the tenancy as follows: (a) Where the owner requires the premises for occupation by the owner or by any member of the owner’s family, 63 days. (b) W here the owner has agreed to sell the premises and is required by that agreement to yield the premises to the purchaser with vacant possession, 90 days. Quiet enjoyment Sec 38. (1) The tenants are entitled to quiet enjoyment of the premises without interruption by the owner or any person claiming under the owner or with superior title to that of the owner; and Sec 38. (2) The owner will not cause or permit any interference with the reasonable peace, comfort or privacy of the tenants in the tenant’s use of the premises.

(b) Use the premises principally for residential purpose (c) Keep the premises reasonably clean and reasonably tidy (d) Notify the owner as soon as possible of any damage to the premises or the need for any repairs (e) On the termination of the tenancy – (i) quit the premises; and (ii) remove all his or her goods from the premises; and (iii) leave the premises in a reasonably clean and reasonably tidy condition, and remove or arrange for the removal from the premises of all rubbish. (iv) return to the owner all keys, and security or pass cards or other such devices, provided by the owner for the use of the tenants; and (v) leave in or at the premises all other chattels provided by the owner for the use of the tenants.

(b) c ause or permit any interference with, or render inoperative, any means of escape from fire within the meaning of the Building Act 2004; or (c) u se the premises, or permit the premises to be used, for any unlawful purpose; or (d) c ause or permit any interference with the reasonable peace, comfort, or privacy of any of the owner’s other tenants in the use of the premises occupied by those other tenants, or with the reasonable peace, comfort, or privacy of any other person residing in the neighbourhood. Sec 40. (3) Where the Tenancy Agreement specifies a maximum number of persons that may ordinarily reside in the premises during the tenancy, the tenants shall ensure that no more than that number will ordinarily reside in the premises at any time during the tenancy. Termination by notice (in writing) Sec 51. (2) The minimum period of notice required, to be given by tenants to terminate a tenancy, shall be 28 days in writing.

Residential Tenancies Amendment Act 2020 On 12 August 2020, new amendments to the Residential Tenancies Act were introduced and became law, with the majority of changes effective from 11 August 2021. Property Brokers have summarised some of the more significant changes for your information. Below is a list of sections and maximum fines that can be enforced by the Tribunal.

Up to $350 Fine

Up to $3,000 Fine

S27(2) Owner requiring rent in excess of market rent order

S33 Owner seizing or disposing of tenant’s goods

Up to $1,500 Fine

S38(3) Interference with privacy of tenants S40(3A) Harassment of tenants or neighbour

S16A(6) Owner failing to appoint agent when outside New Zealand for longer than 21consecutive days S17

Requiring key money

Up to $4,000 Fine S40(3A)(b) Interference, etc., with means of escape from fire

S18 Owner requiring bond greater than amount permitted

Up to $7,200 Fine

S18A Requiring unauthorised form of security

S12(1)

S23 Owner requiring rent more than 2 weeks in advance, or before rent already paid expires S40(3A) Failing to observe, without reasonable excuse, the tenant’s duties upon termination S40(3A) Using or permitting premises to be used for unlawful purpose S40(3A)

enants failing to ensure number T of residents does not exceed maximum allowed

S44(2A) Assigning or subletting a tenancy when prohibited S45(2A) Owner interfering with supply of services to premises S46(3) Altering locks without consent of other party S48(4)

Unlawful entry by owner

S61(5) Abandonment of premises without reasonable excuse

Unlawful discrimination - $6500

S45(1A) Owner’s failure to meet obligations in respect of cleanliness, maintenance, smoke alarms, the Healthy Homes Standards, or buildings health and safety requirements - $7200

SECTION

Service standards

Service standards Property Brokers guarantee that we will perform the following duties when managing your property. Rent collection We have a zero tolerance to Rent Arrears Policy. We will follow-up all rent payments in accordance with: • Our daily monitored arrears process; and • The requirements of the relevant legislation. Rent payments All monies received by us will be credited to your nominated bank account either twice monthly or monthly (minus our fees), as per the Management Authority. A minimum management fee of $25 per week + GST applies for all managements.

Repairs and maintenance

Tenants vacating

All repairs will be attended to and a maintenance request issued to the appropriate tradesperson.

On receipt of vacating notice, we will:

We will arrange any repairs to your property as per your instructions on the Management Authority. We will endeavour to contact you, if this is your instruction (unless the repair is defined as ‘urgent’ under the Residential Tenancies Act, and we have been unable to contact you in such circumstances).

• Confirm the details in writing to the tenants. • List your property on our website and office rental list within one working day. • Prepare all necessary vacating documentation. • Arrange access for viewings by prospective tenants.

We will attend to any ‘urgent’ repair requests by contacting the appropriate tradesperson immediately.

After your tenants have vacated your property and cleaned as per our guidelines, we will:

We will provide you with original invoices for all work on the property arranged on your behalf.

• Conduct a final inspection, to ensure that your property has been left in a clean and tidy condition and collect the keys.

Periodic inspections We will inspect your property as per the Management Authority. We recommend 13-16 weekly unless your insurance policy states otherwise.

• Advise you by phone, letter or email.

• Process the tenants bond refund or transfer this to them as soon as practical. Deduct any amounts deemed owing or necessary at end of the tenancy. • Read the water meter (where applicable) and calculate final amount owing.

Property disbursements and statements

Personal information

All agreed property disbursements will be paid by the due date on your behalf (subject to the availability of funds).

Property Brokers is respectful of the privacy of individuals. This policy will show you how we will use and protect your personal information in accordance with the Privacy Act.

Your monthly statement will be sent to you on the day of the end of month payment. We will provide you with an Annual Income and Expenditure Statement with your April statement each year. General communication Our office hours are Monday to Friday, 8.30am – 5.00pm We will promptly advise you of any relevant matters affecting your property or the tenancy. After hours Property Brokers understands that managing properties is a 24/7 business. A pipe can burst anytime. After 5pm, any call, or maintenance issue is diverted to our call centre and attended to immediately. Complaints procedure All complaints will be formally recorded and responded to within two working days. Documentation We will provide all documentation in clear and concise English. We will ensure that all documentation is accurate and complete. All property inspection reports will be accurately completed.

Unless you advise to the contrary, you consent to the use of your personal information including your name, address, email address and other information you provide to us, as set out in this Privacy Policy, as permitted under the Privacy Act 1993 and as explained to you at the time we receive your information.

You can access any personal information concerning you personally at any time and you can request correction or amendment of such information. You can request that we delete your personal information at any time. Any such request should be directed to the property manager. Professional standards The highest standards of honesty, integrity and professional practice will be conducted in compliance with the Code of Ethics of the Real Estate Institute of New Zealand (REINZ).

When you visit our website and register your needs, enter a promotion or competition, or participate in a survey, we gather personal information from you including your name, address, email address and telephone number. This personal information may be used by us for reasonable business purposes and may be stored on a database, which we would use to satisfy your needs and to improve our services and for statistical purposes. We will not disclose any of your personal information to a third party unless authorised by you to do so. We will take reasonable steps to protect personal information from loss, misuse and unauthorised access, modification or disclosure. We will take reasonable steps to ensure that the personal information we gather is accurate, complete and up to date. 21

The following is a checklist of what we expect tenants to attend to when vacating your property.

Cleaning guide: Exterior

Cleaning guide: Interior Walls

Bathroom

Wipe clean any dirty marks, remove scuffs, finger or food marks.

Wipe clean the sink, mirror, cabinet, vanity unit and drawers. Scrub the shower, screen doors, bath and wall tiles. Ensure both the sink and the bath are draining properly free of hair or blockages and have a plug available.

Ceilings Remove any cobwebs and fly dirt.

Mould Remove mould (particularly in wet areas and sometimes on bedroom ceilings or walls). Light fittings and bulbs Wipe off dust and remove any dead insects. Ensure lights are all working. Ceiling fans Wipe fan blades and tops of fittings to remove dust build-up. Skirting boards Wipe with a damp cloth. Doors and doorways Wipe off finger marks and any other removable marks. Dust doorstops. Windows and window sills Clean window glass. Wipe away dust build-up and dead insects from sills and runners. A vacuum cleaner and paintbrush can help make the job easier. Stove Clean stove top, control display, knobs and panels. Wash any pull out or in-built drip trays, grill racks, trays and inserts, oven racks, and oven walls.

Toilet Clean the cistern, seat, inside the bowl and also around the base. Laundry Clean both the inside and outside of the tub and cabinet. Ensure a plug is present. Heat pumps Clean front vents and filters. Cupboards, drawers and shelves Clean or wash inside and out. Wipe the doors inside and out, door frames and drawer fronts and any shelves. Curtains If curtains are visibly dusty or dirty, simply vacuum or consider dry cleaning. Wash any washable curtains and nets. Blinds If the property has venetian blinds, wipe clean the blind slats. Other types of blinds should be able to be wiped. Floors Mop or wash the floors. Ensure the corners and hard to get areas are also cleaned.

Kitchen range-hood

Carpets

Wipe exterior clean, pull out and clean filters and framework.

If the carpets appear dirty or there have been pets at the property, we may ask that the carpets be professionally cleaned.

Lawns Ensure the tenants mows and trims the edges of the lawns. Gardens Remove weeds, rubbish and build up of leaves, dust and dirt. Rubbish Remove and dispose of any rubbish at the property. Check behind sheds, under shrubs and trees (this includes lawn clippings piled and compost left). Paths and pavers Sweep paths and paved areas. Oil Check and clean carport or garage floors, driveway and paths for oil spillage. If your tenants have used a barbecue, we ask them to check for grease spots and spillages and clean accordingly. Cigarette butts Pick up and dispose of any discarded cigarette butts. Pet droppings Remove any droppings from the gardens, lawns and other areas and dispose of. Do not bury.

We’re members of the NZ Realtors Network, made up of the top independent real estate companies throughout New Zealand with over 190 offices and over 2,900 salespeople and property managers. We currently hold a major share of the national market. This allows us to be part of a huge referral network and we sell and rent 1,000’s of properties each year to buyers and sellers referred to us from our partners.

Nationally provincial from the top of the North to the deep South

For all your property needs, please call 0800 367 5263

Disclaimer. While all care has been taken in preparing this publication, Property Brokers Ltd, its sales consultants and staff accept no responsibility for the accuracy of the information at any time. The information contained has been prepared by PBL for informational purposes only and should not be a substitute for legal, or other professional, advice; you are advised to seek specific advice relevant to your circumstances from a suitably qualified professional. PBL does not accept any responsibility or liability for any action taken as a result of relying directly or indirectly on the information in this document. How you use the information is your sole responsibility. If you have concerns about the information in this publication, contact PBL directly.

PB055012 NOV21

Licenced REAA 2008