by The Landlord
Editorial by Housing New Zealand
Long term lease and guaranteed rent for your rental property
The lease programme provides an opportunity for property owners who want to lease their property in return for guaranteed rent 52 weeks a year.* Leases last for at least five years, resulting in long term continuous rent regardless of vacancies.
*There are situations where Housing New Zealand may have to terminate a lease agreement. For example if a property was uninhabitable following a fire or natural disaster. For more details contact Housing New Zealand.
How leasing works
Before Housing New Zealand lease your house, they need to decide if it's suitable. Things they look for in a house include:
· The location of the home and proximity to schools, shops, and public transport
· The demand for housing in the area
· Size of the house.
If interested, Housing New Zealand will arrange to visit the property. They may recommend some modifications before agreeing to lease it.
The lease agreement with Housing New Zealand
If the property is suitable, both parties sign a Memorandum of Lease. This is a formal contract that gives Housing New Zealand access to the rental property for a defined period, and explains the terms, length and conditions of the lease agreement. Be aware that once the lease is signed there is no opportunity for vacant possession during the lease term. It has similar legal implications to a commercial or retail contract for leasing a factory, office or shop.
You can however sell the property. The lease will continue with the new owners and on the same terms and conditions until it expires. Leases for more than five years are registered on the house's title. When the lease ends, Housing New Zealand will return the property in the same condition it was originally, less fair wear and tear.
Payments, repairs and maintenance?
Payments to property owners are based on market rental rates less a lease margin. The margin covers the cost of tenancy management, bad debt and vacancies. The market rental rates are set by an independent valuer. Lease payments are monthly and paid in arrears. They are based on occupancy of 52 weeks a year, even if the property is vacant. Both parties have the option of requesting a review of the market rent each year.
If there is a health and safety issue needing repair (for example a gas leak, blocked drains or electrical faults), Housing New Zealand consider it urgent and will arrange for the work to be done immediately. Housing New Zealand charge the property owner for this work unless it is due to damage caused by the tenants, in which case they charge the tenants.
If maintenance work is required due to normal wear and tear, they will let you know. The work will need to be organised by you at your cost.
To find out more, contact Housing New Zealand
Housing New Zealand lease homes in Auckland, Christchurch, Nelson, Napier, Wellington, Tauranga, Hamilton, Whangarei and New Plymouth.
If you have a rental property that you are interested in leasing to Housing New Zealand, please call them on 0800 801 601 for more details. Or visit www.hnzc.co.nz
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