There are 4 main documents you need to start a new tenancy:
- Pre-tenancy application
- Tenancy agreement
- Property inspection report
- Bond lodgement form
Pre-tenancy application
Pre-tenancy applications are used by the landlord to collect information so they can determine if prospective tenants are right for the property. The requested information could include reference checks and background checks. Some landlords are very thorough with this and other landlords have less formal methods of determining a tenant's suitability - when you're entrusting one of your biggest assets to another person, you want to be sure you've made the right decision!
If you are collecting personal information about a prospective tenant, it is important that you respect the Privacy Act 2020. Requirements of the Privacy Act include:
- you can only use the information for the purposes that it was collected for
- you need to disclose what the information is going to be used for and who it will be shared with
- must keep the information secure and you must give the tenant access to the information if they request it
- securely dispose of any information no longer required by law to keep
Therefore, if you are collecting information for tenancy checks, it is highly advisable you collect this information through a formal written declaration. This gives protection to and understanding for both the tenant and landlord.
If you're advertising your property on myRent, application forms are automatically attached to your listing. Our forms comply with the Privacy Act and collect all the necessary information and disclosures for you to run the tenant checks.
Tenants should read the pre-tenancy application form and understand the intended use before providing their information to the landlord. If it is not clear, then it is your right to request further clarification.
Uploading your tenancy application form onto myRent helps the landlord comply with the Privacy Act by ensuring its secure storage and access for the tenant. It's also convenient to have all your tenancy documents stored in a single location in case they are needed in the future.
Option fees: Sometimes called a holding deposit, an option fee is a fee paid by the tenant to take the property off the market. You cannot charge any more than 1 weeks rent and that money is applied towards the first week's rent if the tenancy goes ahead, or can be refunded to the tenant. If the tenant chooses not to go ahead with the tenancy then they forfeit this fee. However, if the landlord chooses not to go ahead with that tenant, then this fee must be returned to the tenant. Ultimately, however, the only real security for a tenant that the tenancy is going ahead is a signed tenancy agreement.
Other fees: Most other types of pre-tenancy fees or payments are unlawful, such as key money.
Tenancy agreement
In all residential tenancies, the landlord is required to provide the tenant with a written tenancy agreement before the tenancy starts. The Residential Tenancies Act sets out the minimum standard terms that must be contained in all tenancy agreements. Neither a landlord or tenant can remove these terms or create additional terms that are inconsistent with the standard terms. Both parties should check the agreement carefully before signing - once signed, you will be legally bound to those terms as landlord or tenant.
If you're using myRent to manage your tenancy, through tenancy agreement can be created digitally through the platform. Our tenancy agreement builder runs you through the process of creating documents in simple and easy-to-understand manner. Once prepared, agreements as well as other tenancy paperwork can then signed and exchanged by landlords and tenants digitally. Making the whole experience simple and hassle-free.
Landlords are also required to meet Healthy Homes Standards within the property. They are also required to disclose if the property is insured or not. Healthy Homes Standards compliance statement and insurance statement should be created as part of the tenancy agreement (both statements can be created via myRent)
Any changes in contact details by the landlord or tenant must be provided to the other party within 10 working days.
Property inspection report
A property inspection report is used to record the condition of the property at the start of the tenancy to determine if any damage beyond fair wear and tear has occurred during the tenancy. As a landlord, you should always prepare a condition report because it is the easiest and most reliable way to claim any damages from the tenants bond. It also gives tenants protection against landlord claiming damage that was present before they move in.
The landlord and tenant need to inspect the property and date and sign the inspection report. A free inspection report template can be found here. It is also highly advisable to take photos and videos of all rooms in the property, especially the ceilings, floors, carpets, and any fixtures or fittings to accurately record their condition at the beginning of the tenancy.
myRent offer you a solution to create inspection reports digitally through the site. We guide through the process step-by-step, ask you to upload photos and add notes where required, and allow you and your tenants to sign the inspection report digitally together on the same device or separately in your own time. Uploading the inspection report and any photos into the myRent app means that both the tenant and the landlord can access the documents and a 3rd party can verify the date of those documents if they are ever needed in a dispute.
Bond lodgement form
A bond is money collected and paid by the tenant at the request of the landlord as security against damage to the property or non-payment of rent. This money belongs to the tenant until the landlord makes a successful claim for unpaid rent or damage to the property. To protect the tenant, the bond must be registered by either the landlord or tenant with Tenancy Services within 23 working days. The maximum bond a landlord is allowed to charge is 4 weeks rent.
To lodge a bond:
- Complete bond lodgement form and have it signed by both the tenant and the landlord
- The landlord (if they have already collected the bond) or the tenant, if they are paying the bond directly, should complete the online form and payment including attaching the signed form from step 1.
- Both the landlord and the tenant will receive confirmation from Tenancy Services to the email address provided.
It is very important to keep Tenancy Services up-to-date with any changes in tenants, landlord or tenants contact details.
When you use myRent Management service, we walk you through Tenancy Agreement creation and assist with bond lodgement. We use modern systems to create and e-sign documents, collect money and lodge bonds. We deal with the paperwork while keeping you informed, so you can concentrate on other things that you love doing.
The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.
