Leasing commercial premises

Before you sign the lease

Commercial leases come in varying shapes and sizes. Whether you operate a transport business and need a place to park your trucks, manufacture and sell goods from a warehouse or conduct your trade from a boutique store in the heart of the CBD, your lease agreement will be at the heart of your business.

Before you sign a lease, there are a number of core issues to consider. It is important to do your homework and talk with us before you commit to anything.

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Property briefs

Building report conditions

If you have read an agreement for sale and purchase, you are likely to have seen the term ‘building report condition’. But do you know what a building report condition actually allows you to do, and what it doesn’t?

A building report condition gives you, as the buyer, the opportunity (10 working days is the standard, but this can be lengthened or reduced) to have a suitably qualified building inspector go through your soon-to-be-settled property and report on various elements of the building including the integrity of the construction materials used and its weathertightness.

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The secret lives of tenants

The ‘KFC test’ and tenant privacy

Following publicity in 2018 that some property managers were using the ‘KFC test’ to vet prospective tenants, landlords’ protection of their tenants’ privacy has come under scrutiny by the Privacy Commissioner. Any unlawful intrusion into your tenants’ private lives can be a costly mistake. If you are a landlord, it is timely to ask yourself, “How can I best protect my property without risking a privacy breach?”

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Property briefs

The agreement for sale and purchase

Checking the conditions

Given the significant financial commitment involved in purchasing a property, you want to make sure your investment is sound. One way of ensuring that a property is right for you is to include some conditions in your agreement for sale and purchase. If you do so, the purchase will only go ahead if your conditions are met. An agreement with no conditions included is ‘unconditional’ and you are obliged to complete the purchase once the agreement is signed.

Some common conditions that can be included in an agreement are conditions that give you time to sell your existing property, check what restrictions there are on the property’s title, or get a building report before the agreement becomes unconditional.

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Property Briefs

Warmer homes for Kiwis

Low-income homeowners or homeowners in low-income areas could be eligible for the new government grant to assist in keeping their homes warm in winter.

On 1 July 2018 the new four-year government program, Warmer Kiwi Homes, came into effect. Under this initiative the government will cover up to two-thirds of the cost of underfloor and ceiling insulation or, if you have a concrete floor, ground vapour barriers. Warmer Kiwi Homes only applies to homeowners who have a Community Services Card, however, funding help no longer stretches to landlords.

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Guiding your offspring into flatting

Going flatting for the first time is an exciting step for your adult children. They get to live with people their own age and you have your freedom. How can they make the most of this new-found independence with the least risk to them?

Residential tenancy agreements

Flat leases are really ‘residential tenancy agreements’. Agreements should be in writing, however, an unwritten agreement can sometimes be enforced. A written agreement makes the obligations clear for both a tenant and their landlord. Your child and their flatmates should talk with their landlord about what the agreement contains. You should remind them to read the agreement through before it’s signed – no one wants nasty surprises.

Residential tenancies can be for a fixed term or ‘periodic’. Fixed term means that the tenant rents the property for a fixed time such as 12 months. This means rent must be paid for the full term, even if the flatties go home for the university holidays.

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Is your rental safe and healthy?

Penalties for landlords dragging the chain

New laws came into effect on 1 July 2016 that require landlords to make their properties safe and healthy for tenants. These new laws provide some lead time for properties to be brought up to standard; they will apply to all rented properties from 1 July 2019. Will your rental property meet the new standard?

A recent Tenancy Tribunal decision shows that the Ministry of Business, Innovation and Employment (MBIE) is not shy of showing its teeth to ensure that tenants have safe and healthy homes by complying with the health and safety amendments to the Residential Tenancies Act 1986. The Residential Tenancies (Smoke Alarms and Insulation) Regulations 2016 outline requirements for rental properties, including underfloor and ceiling insulation, and requiring smoke alarms within three metres of each bedroom.

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Property Briefs

Current tenants selling their business – what it means for a landlord

If you are a commercial building owner, you will at some point come across a situation where your current tenant wants to sell their business. Tenants often forget to talk to their landlord about them consenting to the new business owner.

When a business is sold, the current tenant is obliged to seek the landlord’s consent to assign the lease to the incoming business owner. The landlord usually has 10 days to approve the new tenant.

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Property Briefs

Hidden titles

If you or a member of your family have been granted a protection order under the Domestic Violence Act 1995 you can apply to the Registrar-General of Land under s108 of the Act to hide the information held about you on the Land Register which may otherwise disclose your whereabouts.

In practice this means that no-one can then search for your title information without your consent. The hidden title direction lasts for five years unless the protection order is discharged earlier; and it can be revoked at any time if your circumstances change.

Co-owners of the property must consent to your application as their details will also be concealed.

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What Are Your Rights When Your Tenants Don’t Pay Up?

Renting out residential property is a great way to make some extra money, pay your mortgage off faster and build an investment nest egg. It can cause real frustration, however, when your tenant fails to pay rent on time.

To avoid costly delays, you should know the steps to take that will allow early intervention to either get the rent payments back on track or to bring the tenancy to an end.

Early intervention is key when it comes to dealing with rent payment problems. Your tenancy agreement should clearly state how rent is to be paid and when. You should also keep and monitor rent records so you will know straight away if your tenant falls behind in payments. If your tenant does miss a payment the first step is to contact them to find out the reason for that missed payment and to make a payment plan. If your tenant doesn’t pay the overdue rent, below is a guide to help fix the problem.

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