When managing rental properties, knowing who is responsible for compensation orders can be complex. A recent Tenancy Tribunal case sheds light on this issue, offering valuable insights for both property owners and managers.
The Case Overview
In a recent Tenancy Tribunal case, a landlord who was overseas for more than 21 days had appointed a property manager. According to Section 16A of the Residential Tenancies Act, if a landlord is abroad for over 21 days, they must appoint a property manager who assumes all landlord duties.
Why Both the Owner and Property Manager Were Liable
The Tribunal found that when a property manager is appointed, they are legally considered a landlord and share responsibility with the property owner. In this case, despite having a property manager, the property faced issues related to cleanliness, ventilation, drainage, and maintenance, which were not addressed in a timely manner. The Tribunal ruled that both the property owner and the property manager were responsible for the issues that occurred during the management period. The property manager was liable until the end of their contract, and the owner became solely responsible afterward.
Key Takeaways
This case highlights that property managers take on significant responsibilities and may still be liable for compensation orders related to their management period, even after their contract ends. Property owners should ensure their managers handle all aspects of property care effectively.
Stay Updated with Recent Cases
At Reliance Property Management, we stay informed about Tenancy Tribunal decisions to better serve you. Check out our latest blog posts for insights on:
- Managing Communication During Notice Periods
- Implications of Landlord’s Residence Exclusions
- Tenant Refunds Following Illegal Tenancies
- Fines for Invalid Termination Notices
For personalized advice on auckland property management or tenancy issues, contact us at info@relianceproperty.co.nz or call 0800 131 141.