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“Tenants from hell” take advantage of Tribunal delays

Landlords claim “druggie gangs are having a field day” since the processing of Tenancy Tribunal applications has been centralised in Porirua.

Thursday, August 9th 2007, 12:00AM

by The Landlord

By Andrea Milner
Landlord Ron Goodwin explains, “In my experience since this Porirua system was set up, the gangs know their stooge tenants are good for at least six to 10 weeks rent-free while they have a ball at the landlord’s expense. They know their stooge tenants can drag out the ridiculous mediation process while the landlord is unable to do anything”.

Department of Building and Housing client services manager Jeff Montgomery says that 60% of all Tenancy Tribunal applications are resolved at mediation.

“In 80% of cases, mediation is held within 10 working days or less of an application being received. Of the 40% that are not resolved in mediation, more than half have a hearing within 20 working days of an application being received,” says Montgomery.

What typically happens, says Goodwin, is that “a sweet wee solo mum on the DPB applies to rent your house. A few days after she moves in, the boyfriend moves in too. All is well for several weeks as far as rent payments go, then the parties start. Next other people start living in the house, and the neighbours start complaining; not only about the parties, but also about all the cars coming and going day and night because they are retailing drugs. Soon after that, the rent stops, the landlord and neighbours are treated with contempt, and the long road through the new Porirua system gets underway, while the landlord suffers financial losses waiting for the Tribunal hearing and eviction”.

Goodwin describes it as “almost impossible” to recover money owed by such tenants after they have been evicted. Tenants could be kept under control, Goodwin says, through speedy processing of Tenancy Tribunal applications “until this Porirua system was set up last year”.

An investor who strikes a “tenant from hell” in his or her first few tenancies “will simply give up and sell up,” he says.

He has heard of a highly experienced residential real estate agent who tried being a landlord, got a “tenant from hell” on his first tenancy, and “the whole drama cost him $35,000 before the place was finally fixed up and resold”.

Montgomery says landlords experiencing application processing delays should contact the Department, and those in Auckland should speak with Auckland and northern region manager Jessie Henderson: 09 375 6412 or at Jessie.henderson@dbh.govt.nz.

Also, landlords should include an email address on the application form. He says they will then receive an email to acknowledge receipt of their application and progress updates.

 

« Calls to blacklist “tenants from hell”Tenants playing the system for free rent »

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Lender Flt 1yr 2yr 3yr
AIA 4.55 ▼2.29 ▼2.59 ▼2.65
ANZ 4.44 2.89 3.25 3.39
ANZ Special - 2.29 2.69 2.79
ASB Bank 4.45 2.29 2.59 2.65
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - 2.29 2.59 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 2.89 3.19 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 2.50 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.50 3.40 -
HSBC Premier 4.49 2.25 2.35 2.65
HSBC Premier LVR > 80% - - - -
HSBC Special - 1.99 - -
Lender Flt 1yr 2yr 3yr
ICBC 3.69 2.25 2.35 2.65
Kainga Ora 4.43 2.79 3.04 3.13
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.20 3.50 3.50
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.35 2.65 2.65
Liberty 5.69 - - -
Nelson Building Society 4.95 3.20 3.24 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
SBS Bank 4.54 2.79 2.79 3.15
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.29 2.29 2.65
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 2.09 - -
The Co-operative Bank - Owner Occ 4.40 2.29 2.59 2.79
The Co-operative Bank - Standard 4.40 2.79 3.09 3.29
TSB Bank 5.34 3.09 3.29 3.45
TSB Special 4.54 2.29 2.49 2.65
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.09 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - 2.29 2.69 2.79
Median 4.55 2.79 2.99 2.80

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