This is great news for investors in NZ. Got this quote from a NZ site link that someone spammed onto me yesterday. Didn't mind this kinda spam.
"It Keeps Getting Better
Geoff Boxall
President
Wellington Property Investors Association
“Things just keep getting better for landlords who are seeking recovery of rent arrears – and they need to.”
93%of applications made to the Tenancy Tribunal are made by landlords, and 76% of those applications are for recovery of rent arrears. In total, more than $22 million is owed for rent arrears, with little prospect of recovery.
Initiatives announced by Housing Minister Steve Maharey last August included improved support for creditor landlords who have received Tenancy Tribunal Orders in their favour but are having difficulty locating the debtor. On application by the landlord, bailiffs are now provided with a current address for service by government agencies to facilitate the debt recovery process.
A further initiative provides for beneficiary tenants to have their rent deducted from their benefit at source and paid directly into the landlords bank account. The correct form to use for this service is V19 available from WINZ; however the initiative must come from the tenant that they make an appointment with their case manager and take the letter along with them. If the matter goes as far as a Mediation Conference, ask the Mediator to write the order specifying that WINZ is to pay the rent directly into your account. (Remember to provide details of your rent account).
The effect of a further new initiative is that instead of having to wait for the 10 working day letter to expire before making an application to the Tenancy Tribunal, landlords can now apply on the date that the letter is served and proceed to an application for a hearing on day 11 if the letter has had no effect. This is a significant saving in time from the previous situation when an application could not be filed until the expiry of the letter, and several weeks delay could ensure between the date when a tenant stopped rent payments and the date of eviction. This was also a reason why many landlords were opposed to mediation which they saw as a further delaying tactic before obtaining a hearing date.
When representatives from our (Wellington Property Investors) Association recently met with a consultant from the Ministry of Housing we suggested a change to
Tenancy Services procedure whereby the Notice of Mediation should also contain a Tribunal hearing date if mediation fails. This would be a significant advance on current procedure and would show the defaulting tenant that it is no use ignoring the notice and failing to turn up at mediation. Too many defaulting tenants seem to think that if they ignore the problem then it will go away.
To assist in resolving rent arrears problems before they occur, always remember to:
1. Use a tenancy application form
2. Obtain and check references
3. Check credit worthiness of prospective tenants
4. Obtain at least two weeks rent as bond
5. Obtain rent and bond payments in advance
6. Allow for AP payments to coincide with wage payments
7. Issue monthly rent statements
8. Keep clear and accurate rent records
9. Check rent payments every week
10. Contact the tenant immediately if a payment is missed
11. Issue a 10 working day letter if required
12. Allow for realistic catch-up payments
Prevention is always better than cure and observing the above rules will assist toward preventing the major hassles experienced by many landlords. Remember that property investment is a business and good financial management is essential to be successful.
Copyright © by PropertyTalk.co.nz All Right Reserved.
Published on: 2004-05-24 (63 reads) "
OOOOhh yeeesss !
About time. Hope Australia wakes up and follows suit and takes some of the slope out of the playing field. As most burnt landlords and PMs know, tenants owing arrears especially with tribunal orders against them have been hiding behind Govt Depts for long enough. It has been impossible to enforce tribunal orders on tenants who are on Govt payments because they have only to invoke the magic words " I am on the lowest level of income so I will pay what I can when I can ", which in most cases turns out to be "nothing and never". And they move house after being evicted and hide their new address behind Govt privacy laws. Hopeless. Just another Govt enforced "lose" for the investor. An investor funded gift for the lower income bracket group. Any wonder so many PM's decline so many tenancy applications on the basis of income or unemployment. oops, just slipped up onto a soapbox there for a minute without noticing myself.
Go NZ, good onya.
cheers
crest133
"It Keeps Getting Better
Geoff Boxall
President
Wellington Property Investors Association
“Things just keep getting better for landlords who are seeking recovery of rent arrears – and they need to.”
93%of applications made to the Tenancy Tribunal are made by landlords, and 76% of those applications are for recovery of rent arrears. In total, more than $22 million is owed for rent arrears, with little prospect of recovery.
Initiatives announced by Housing Minister Steve Maharey last August included improved support for creditor landlords who have received Tenancy Tribunal Orders in their favour but are having difficulty locating the debtor. On application by the landlord, bailiffs are now provided with a current address for service by government agencies to facilitate the debt recovery process.
A further initiative provides for beneficiary tenants to have their rent deducted from their benefit at source and paid directly into the landlords bank account. The correct form to use for this service is V19 available from WINZ; however the initiative must come from the tenant that they make an appointment with their case manager and take the letter along with them. If the matter goes as far as a Mediation Conference, ask the Mediator to write the order specifying that WINZ is to pay the rent directly into your account. (Remember to provide details of your rent account).
The effect of a further new initiative is that instead of having to wait for the 10 working day letter to expire before making an application to the Tenancy Tribunal, landlords can now apply on the date that the letter is served and proceed to an application for a hearing on day 11 if the letter has had no effect. This is a significant saving in time from the previous situation when an application could not be filed until the expiry of the letter, and several weeks delay could ensure between the date when a tenant stopped rent payments and the date of eviction. This was also a reason why many landlords were opposed to mediation which they saw as a further delaying tactic before obtaining a hearing date.
When representatives from our (Wellington Property Investors) Association recently met with a consultant from the Ministry of Housing we suggested a change to
Tenancy Services procedure whereby the Notice of Mediation should also contain a Tribunal hearing date if mediation fails. This would be a significant advance on current procedure and would show the defaulting tenant that it is no use ignoring the notice and failing to turn up at mediation. Too many defaulting tenants seem to think that if they ignore the problem then it will go away.
To assist in resolving rent arrears problems before they occur, always remember to:
1. Use a tenancy application form
2. Obtain and check references
3. Check credit worthiness of prospective tenants
4. Obtain at least two weeks rent as bond
5. Obtain rent and bond payments in advance
6. Allow for AP payments to coincide with wage payments
7. Issue monthly rent statements
8. Keep clear and accurate rent records
9. Check rent payments every week
10. Contact the tenant immediately if a payment is missed
11. Issue a 10 working day letter if required
12. Allow for realistic catch-up payments
Prevention is always better than cure and observing the above rules will assist toward preventing the major hassles experienced by many landlords. Remember that property investment is a business and good financial management is essential to be successful.
Copyright © by PropertyTalk.co.nz All Right Reserved.
Published on: 2004-05-24 (63 reads) "
OOOOhh yeeesss !
About time. Hope Australia wakes up and follows suit and takes some of the slope out of the playing field. As most burnt landlords and PMs know, tenants owing arrears especially with tribunal orders against them have been hiding behind Govt Depts for long enough. It has been impossible to enforce tribunal orders on tenants who are on Govt payments because they have only to invoke the magic words " I am on the lowest level of income so I will pay what I can when I can ", which in most cases turns out to be "nothing and never". And they move house after being evicted and hide their new address behind Govt privacy laws. Hopeless. Just another Govt enforced "lose" for the investor. An investor funded gift for the lower income bracket group. Any wonder so many PM's decline so many tenancy applications on the basis of income or unemployment. oops, just slipped up onto a soapbox there for a minute without noticing myself. Go NZ, good onya.
cheers
crest133
