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Allen Realty recently terminated a tenancy due to damages, most of which was believed to be intentional. These tenants looked great on paper and started well for the first part of the tenancy. Things took a turn for the worse after more of the tenant’s family came to stay at the property. Due to a successful routine inspection programme the property manager identified damages and quizzed the tenant who came up with an elaborate explanation of how her brother had "lost the plot" after having too much to drink and had made some holes around the interior of the property. A broken window was also noted. The property manager immediately requested the tenant remedy the damage and sent the tenant the required 14 day notice outlining the breach in the tenancy agreement and all the issues that required fixing as soon as possible. At the expiry of the notice a new inspection was carried out and the remedial work had not been attended to. The tenant also missed a rent payment at this time. We then made an urgent application to the Tenancy Tribunal for the recovery of rent arrears and a work order requiring the tenants to make the repairs immediately. The tenants agreed to pay the arrears and fix the damages and the owner decided to give them one last chance so a mediated order confirmed the arrangement. The landlord and property manager re-inspected the property and the repairs were not up to standard and the general presentation was also getting worse. Allen Realty in consultation with the owner issued the tenants with 90 days notice to terminate the tenancy and also applied for immediate termination of the tenancy. The tenants then abandoned the house. Steps were taken to fix all damages and re-rent the property. The owner had to repaint many walls due to the amount of damage. Allen Realty attended the Tenancy Tribunal hearing to recover rent arrears, damages and compensation. The tenants did not turn up to court and did not respond to the property manager’s messages. The previous Tenancy Tribunal mediated order confirmed the tenant had admitted the damage and agreed it was their obligation to fix the issues. At this point it was a matter of proving that the tenants had not rectified the damage. A successful hearing was completed and Allen Realty won the following costs for the owner:
The bond was refunded to the landlord towards this debt and a claim is currently underway through the owner’s Landlord Insurance. As some of the damage caused by the tenant or family was "intentional" we anticipate that a successful claim for a portion of the $5285.00 spent to redecorate walls will be completed. This was one of the worst examples of tenant damages ever experienced by Allen Realty. The successful outcome is a result attributable to the property manager being quick to spot the problem, in addition to Allen Realty having a regular inspection programme and knowing the Tenancy Tribunal application process and what the courts require. Applications were made to the courts immediately and the tenant was made accountable. The debt has been sent to a debt collector so all future landlords can see that the tenants owe this money. The tenant is currently making arrangements to pay the debt off. All properties should be inspected periodically to check up on presentation and identify damages. A comprehensive tenant selection process normally avoids this situation but every now and again a really bad egg turns up. It goes to show that no matter how careful you are in the vetting process these things can potentially happen. Fortunately the above situation is a very rare occurrence for Allen Realty. Having a competent property manager who takes prompt action reduces the risk of such problems and extreme damage. Excellent tenants can turn into ˈnightmareˈ tenants overnight. As soon as problems are identified then action should be taken through the Tenancy Tribunal to have the damage fixed and tenancy terminated if need be. As British historian C. Northcote Parkinson once said "Delay is the deadliest form of denial". 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 Need a Tenancy Agreement for your Rental Property?, Maintenance and Your Property Manager, 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
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The Residential Tenancies Act governs residential tenancies. Section 55 of the Act provides for termination of the tenancy if "the tenant has caused, or has permitted any other person to cause, or has threatened to cause, substantial damage to the premises".
