Getting the details right on a tenancy agreement can be the difference between winning a tenancy tribunal case or being taken to the cleaners. Several times over the years, I’ve had tenants claim that they weren’t on a fixed term tenancy when the agreement clearly showed they were. Without all the proper paperwork in place, you won’t have any evidence to support your story and tribunal cases quickly go against a landlord who isn’t prepared!
Your tenancy agreement won’t cover all the issues that you will be faced with and there are some other situations that you may want to cover yourself for, such as number of occupants. I’ve rented a house to two people and then seen a small lounge converted into a bunk room for six. I’m not sure why the tenants thought they were going to get away with that as I was the next door neighbour! There are many possibilities for additional terms but you need to be sure that they are not in breach of the RTA. One common one that isn’t allowed but often used is the requirement for tenants to have carpet professionally cleaned before vacating the property.
Others that are allowed are;
- Specifying who is to maintain gardens or lawns
- Smoking areas
- Rent review periods (this is especially important in long term fixed tenancies)
- What (if any) pets are allowed – a small Chihuahua can quickly morph into 3 Rottweillers!
Glenn Morris from Glenn’s Vacancies in Nelson says this…
The law requires you to have tenancy agreements in writing but then states that even if it is not in writing you are bound by the law or what might have been verbally agreed to. Most (but not all) people use the DBH produced agreement that can either be purchased or accessed on line. However, it does need to be filled in correctly. Please pay attention to the sections that require you to cross out portions. I recently had to deal with a tenancy agreement the owner had not crossed out the periodic/fixed term clauses. He gave the tenants notice and they claimed they had a fixed term which could not be terminated by notice. In another case of my own the tenant claimed in court that I had agreed to permit the reassignment of the tenancy to her son. I was able to show I had crossed out the clause in bold that forbade reassignment thus easily proving her verbal claim was false. Section 8 says those types of tenancies excluded from the RTA such as family members can be covered if you agree but then you can exclude or modify the normal provisions of the act. This is very handy if you letting something like a caravan or holiday home you can specify special conditions for termination or lack of facilities like a stove or bathroom.
