APIA Blog

RSS Feed

Tenant requesting permission to occupy after termination

Thursday, October 22, 2020
IMG SOURCE: UPSLASH 

This week's question comes from Maggie:  

I issued a 90-day notice for termination on 5th November. The tenants have asked if they can stay longer as they can’t find a home. I still want to terminate but am flexible with the date of exit. I gave notice in this instance as these are not tenants I want once the RTAA2020 termination rules come into effect. What’s my position if I allow them to stay longer? What process should I follow?

Termination is not eviction. Termination in this instance means revocation of the licence to occupy. If the tenant remains in occupation then the landlord has to follow a separate eviction process to remove them from the property. If the landlord elects not to evict then the tenant is able to remain in occupation. 

In this instance, your tenants' license to occupy expires 5th of November (assuming the notice was served correctly). Assuming you elect not to evict and your tenants remain in occupation, s60 of the Residential Tenancies Act outlines the terms of that occupation. Your tenants' obligations continue as if the tenancy is still ongoing until they leave the property. If you allow the tenants to remain in occupation for over 90 days after terminating without a possession order or if your possession order is over 90 days old then the law assumes that you and the tenants have entered into a new periodic tenancy.

Note that s60 is silent on the landlord’s obligations. Strictly speaking then, you could very take the position that you are thus released from any obligations under the tenancy agreement and the RTA without losing any of your rights (such as being paid rent on time). Seeing that tenancy law and the Tribunal are increasingly pro-tenant, we recommend that you take the more conservative approach of assuming that your obligations continue irrespective of the language in s60. Also, not for nothing, it is the decent thing to do. 

We recommend the following:

  • Keep the original notice (i.e. termination date as is);
  • Maintain a clear written exchange with your tenant outlining the circumstance (i.e. they have yet to find somewhere to move to), your permission for them to continue occupying for a set period of time (say, a week), both parties acknowledge the tenants' obligations subsist throughout the period and that you will regularly review the permission with a view to renew if appropriate; 
  • Revisit your permission and renew if necessary/appropriate making sure that you do not allow the tenant to remain in occupation for over 90 days after termination.

Good luck. We wish you and your tenant all the best!


 

Do you have any tenancy related questions? Write to us at admin@apia.org.nz or hit us up on our social channels here and here

 

 

 

 

Recent Posts


Tags

ird heater Editor's Choice first home buying education wealth creation tenancy tribunal rta reform clnz rental wof Case study investment strategy Must knows reserve bank partners Investor story rent off the plan ask an expert barfoot and thompson equity election2020 LIM scotney williams beginner investor opes partners tax election 2017 relationship asbestos Gluckman early termination negotiation khh television government bond data security tenancy services Q&A initio fixed-term tenancy building commerce commission Landlording Market report banking Tribunal case study sale and purchas property apprentice HHS cgt trademe privacy CoreLogic business ventilation Standards New Zealand positive cash flow robert kiyosaki financial advisers act inspection housing bubble development finance warm up new zealand minor dwelling ring-fencing letting property maintenance return personal growth property management Level 4 wins maintenance sale and purchase parry v inglis buying housing affordability rta debt enforcement re agent interest rates rent increase principal and interest RBNZ How to unitary plan auckland cat holiday house water bill shower dome Jeff Bezos renovation ocr meth covid-19 short-term rental yield watercare income boarding house Sponsored post rental market Kris Pedersen Mortgages and Insurance sublease CCC bond form productivity structure auckland council advice TCIT HHGA Guest blog property worksafe landlord smoke alarm tenancy issues HSWA winz meth contamination twg report kiwibuild mortgage capital gain buyer's agent nzpif insulation anz damage RTAA 2019 skill shortage rent arrears airbnb lvr Must know heating subdivision legal Question and answer mindset buying rules tenant letting fee trespass will trust Holler cash-flow extractor fan market Investment tip investor property value termination recycling equity property cycle insurance bankruptcy gluckman report bad tenant management interest only Property (Relationships) Act warren buffett anti-social behaviour speculator DTI house prices rtaa2020 market rent p lab

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited