Need a Tenancy Agreement for your Rental Property?

The Residential Tenancies Act 1986 requires that a written tenancy agreement is completed before a tenant moves in. The tenancy agreement must contain key information including:

1. The address of property
2. Contact details of the landlord and tenant
3. The date the tenancy starts and date the agreement was signed
4. Type of tenancy
5. Addresses for service for both parties
6. The weekly rent and bond amount, frequency of rent payments and account number for rents to be paid
7. The chattels provided by the landlord

These are the minimum requirements and it is best practice to record additional information that may affect the tenancy. Tenancy agreements can be downloaded from the Department of Building and Housing. Landlords should have completed a comprehensive tenant selection process and tenancy application forms should all be filed away safely with copies of tenancy agreements.

Over the years I have seen tenancy agreements on the back of food packaging and tenancies negotiated verbally with no written agreement initially in place. The Residential Tenancies Act will still govern the tenancy if there is no tenancy agreement while your tenant is in occupation. However there are great risks for landlords with no agreement in place as tenants can claim that as there is no agreement.

The most common problem is when tenants stop paying rent and claim they are not responsible as they are not the legal tenant. If rent is owed and damages occur then proving who is responsible can be difficult. If you have a rental property with no written tenancy agreement then arrange to meet with your tenants to record the tenancy details in the form of a written agreement. If your tenants won’t cooperate it may become difficult as the Act already governs their tenancy, especially if they are paying rent and you are willingly accepting it. The Residential Tenancies Act allows for you to issue 90 days’ notice to terminate a periodic tenancy, even if there is no written agreement. Issue this notice addressed to all residents. If tenants are not paying rent or won’t move out then you can make an application to the Tenancy Tribunal for the termination of the tenancy.

If you have no written tenancy agreement, then act now and get one completed with your tenants before problems occur. You may need to negotiate the tenancy specifics, and the condition of the tenancy should also be recorded at the same time. Regular property inspections, maintenance schedules and rent reviews will assist to ensure a successful tenancy. See FAQS on our website for more information on our services. If you engage a property manager like Allen Realty we can arrange all the required legal documentation including bond lodgements.

Allen Realty is a 100% specialist Auckland Residential Property Management company with a growing network of local branches in Mt Eden, Auckland CBD, Greenlane and Manukau. Visit www.allenrealty.co.nz for information on our services or email simonallen@allenrealty.co.nz for more information. Or you can contact us today for a FREE Property Management Consultation and find out how we can structure a tailored management service to suit your requirements.

You can read other recent blogs including Maintenance and Your Property Manager, Successful Tenancy Application claimed by Allen Realty, Unit Titles Act 2010 Explained, Rental Market Report Spring 2011, Allen Realty Wins Industry Award for Excellence, Listen To Your Tenants, Rodents in Your Rental Property?, Rent Arrears—What is the Process?, Negotiating Tenancies, The Tenant Selection Process, The Art of the Rent Review, Smoke Alarms in Rental Properties and Low Maintenance Gardens in Rental Properties.

Simon Allen
REINZ Residential Property Manager of the Year 2011
November 2011

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