The current crisis

Coronavirus is spreading quickly, as you know, and it is impacting everyone's way of life. Many people are losing their jobs and their income is going to zero. The government has released a Business Support Package for employees, businesses, and self-employed people.

Legislation changes

The government has made some emergency changes to the Residential Tenancies Act that governs our rentals are managed. In particular;

1. They have placed a freeze on rent increases (doesn't affect us).

2. Landlords can no longer terminate tenancies except for a limited number of reasons. These are when the tenant:

• substantially damages the premises

• assaults or threatens the landlord, the family, or neighbours

• abandons the property– engages in significant anti-social behaviour

• is 60 days behind in rent

• or if both parties agree.

Bear in mind that tenants can still terminate their tenancies with the same notice period. The government will review these changes in 3 months' time.

How this affects your rental

The main thing that is scaring property managers is the increased allowable arrears of 60 days. This means that it would take up to 3 months to submit and get a judgment from the tenancy tribunal, evict the tenant, and then re-let the property. This doesn't affect us at the moment but something to consider. What we can't do It also means, for the next 60 days it will be difficult to undertake much of the normal property management activity we do, namely:

• evict a tenant (the regulations are specific about this)

• routine inspections

• routine maintenance

• property viewings

We will be working on innovative ways to address these issue such as virtual viewings, video inspections, and digital contracts.

What we can still do

• market your property in preparation for the release of lock down restrictions. The average property takes between 12 and 21 days to let.

• sign up tenants on conditional agreements in anticipation of lockdown release

• emergency maintenance - i.e. something that would result in significant damage to the property or put the tenant at risk of harm

If you want to speak to someone about how Dunedin Property Management can help you. Please give us a call.