Renting 1/4 acre paradises

More and more young families are swinging away from mortgages, CATHERINE MASTERS reports.

Owning your own home - once a dream of just about every New Zealander - has lost quite a lot of its appeal.

Young New Zealanders in particular are increasingly on the move and instead of buying are opting to rent.

In the past eight years there has been a 52.5 per cent increase in private sector tenancies around the country.

"The most obvious explanation is that the rate of home ownership is reducing because more households are choosing to rent," says Professor Bob Hargreaves, Massey University's real estate unit analysis director.

Young people are putting off settling down, are moving more often and each year the rate of home ownership drops by about 1 per cent.

And while the biggest growth in private sector rentals is Auckland and Wellington - reflecting the higher concentration of inner-city dwellers - rents themselves have remained static for the last couple of years, says Professor Hargreaves.

The national median rent is $190. In some areas this will pay for a house but in cities such as Auckland it gets you a room in a flat.

According to Ministry of Housing statistics for September 2000 to the end of February, the average rent for a three-bedroom house in Auckland City and Grafton was $514.

In upmarket Orakei, Mission Bay and St Heliers the average rent was $399 and over in Mangere a three-bedroom house the rent averaged $247 a week.

For a one-bedroom flat in Grafton the average rent was $284, in Mission Bay it is $217 and in Mangere it was around $138.

When renting there are a few things tenants should know (landlords also have rights) and these are defined in law under the Residential Tenancies Act.

Tenancy Services, a division of the ministry, spells out who is responsible for what and answers some of the more common queries.

For example, tenants would usually be responsible for doing the lawns and gardens, but if they live in a set of flats with common ground then the landlord is responsible.

The landlord, however, does not have to provide a mower and garden tools.

The landlord has to clean out the gutters, prune the trees and cut the hedges.

But he or she does not necessarily have to provide a fridge or washing machine.

Landlords cannot take a tenant's goods for non-payment, or for any other reason.

A broken window has to be repaired by the tenant if the tenant or their visitor or family broke it, but if it was broken by a burglar or any other reason that is out of the tenant's control it is the responsibility of the landlord.

A landlord does not have to announce if he is visiting as long as the visit is confined to the doorstep.

Stepping over the threshold is different. If landlords want to have a look inside they must give notice and differing periods of notice apply for different reasons for visiting.

If a landlord finds the tenant has fled without giving notice he or she must apply to the Tenancy Tribunal for a possession order before reletting the property.

However the landlords can secure the property and take away anything perishable.

If a tenant needs repairs carried out the advice is to talk to the landlord because it is in the best interests of the landlord to keep the building maintained.

If the repair is urgent, there is a possibility of injury and the tenant has not been able to contact the landlord, the tenant can have the work done and ask the landlord for reimbursement.

For other repairs which the tenant thinks need doing but a landlord may disagree, the tenant can contact a Tenancy Services office.

This may result in an application to the Tenancy Tribunal, a special quasi-judicial body which sorts out problems when tenants and landlords cannot agree.

On the other hand, the landlord may want damage caused by the tenant to be repaired. In this case, if the landlord thinks the damage can be repaired, he or she can give the tenant 10 working days to do so.

If the tenant does not do it then the landlord can apply to the tribunal for a ruling or to end the tenancy.

* Tenancy Services offers two free telephone numbers: 0800 737-666 for bond inquiries and 0800 836-262 for tenancy inquiries.


Rights, duties for both sides


Tenants must:


* Pay the rent on time.

* Make sure the house or flat is used mainly for residential purposes.

* Repair or pay for damage caused deliberately or carelessly by the tenant or the tenant's guests.

* Keep the house or flat reasonably clean and tidy.

* Pay for electricity, gas, water and telephone.

* Allow the landlord reasonable access to show people through the property.

Tenants must not:

* Deliberately or carelessly damage the residence.

* Use the premises for anything unlawful.

* Renovate, alter or add without written permission from the landlord.

* Change the locks without permission.

* Interfere with the peace, comfort or privacy of tenants or neighbours, or allow anyone else at the house or flat to do this.

* Unreasonably refuse entry to the landlord when he/she is entitled to enter.

Landlords must:


* Give 60 days written notice of a rent rise.

* Tell the tenant if they intend selling.

* Pay the rates, insurance and land tax.

* Give the tenant 48 hours notice of an inspection.

* Give the tenant 24 hours notice of entry to repair.

* Do any necessary repairs.

* Repay the tenant for any urgent repair work the tenant had to have done.

Landlords must not:


* Harass the tenant or interfere with their reasonable peace and privacy.

* Change the locks without the tenant's consent.

* Ask for more than two weeks rent in advance.

* Inspect the property more than once in four weeks (unless checking work done by the tenant).

* Unreasonably withhold permission for a tenant to sublet or assign the tenancy to someone else if this is not prohibited by the tenancy agreement.

* Go into the property except as permitted by law, or with the tenant's consent.

Links:

Ministry of Housing

Consumer Online