Wellington Propertyscouts

Tenants May Face Limited Liability for Some Damage - 17th Oct 2016

In a presentation made to the NZ Property Investors Federation conference, Nick Smith has spoken about the recent issues surrounding Tenancy Tribunal rulings and tenant liabilty when it comes to damage made to rental properties.

Nick Smith stated 'My concern about this new interpretation is that it will add to the overall costs of the residential sector, driving up insurance costs and rents. However, we do not wish to return to the situation where tenants may be sued by their landlord’s insurance company for hundreds of thousands of dollars, such as with an accidental house fire.'

He said that with the way the law is being applied at the moment, there is no incentive to stop damage. His proposal is that 'tenants could be held liable for damage caused by carelessness or negligence up to the value of their landlord’s insurance excess but not exceeding four weeks’ rent, which is aligned with the standard tenancy bond.'

The NZ Property Investors Federation has not yet responded, however it is likely to see this as a move in the right direction.

Read the full article and watch the video here: http://www.landlords.co.nz/watch-video.php?video_id=20

 

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