As summer approaches, many renters in New Zealand are gearing up for their well-deserved vacations and contemplating the possibility of subletting their rental properties. Subletting is a practical solution that allows tenants to vacate their homes while someone else occupies the property. With recent changes in New Zealand’s rental laws, it’s an ideal time to familiarise yourself with the rules and regulations governing subletting. In this article, we will explore the ins and outs of subletting and provide some essential information to ensure any action you take aligns with what’s permitted.
What is Subletting?
In simple terms, subletting is the practice of allowing someone else to rent and occupy your property temporarily while you are away. It serves as a popular short-term rental solution, enabling individuals to return to their homes after the sublease period concludes.
The Rules Around Subletting
In 2020, New Zealand’s Residential Tenancies Act 1986 underwent significant amendments, aiming to bring rental laws in line with the modern-day rental market. The Residential Tenancies Amendment Act 2020 granted tenants the right to sublet their tenancy agreements unless explicitly prohibited in the rental agreement. However, there are essential rules and responsibilities for tenants wishing to sublet.
If the rental agreement contains no clause addressing subletting, tenants must seek permission from their landlord or property manager. It’s essential for renters to be transparent and request consent. In cases where a landlord denies a request unreasonably, tenants can appeal the decision to the Tenancy Tribunal.
Subletting: 5 Things to Consider
Subletting can be an excellent way to save money during your absence, but it’s crucial to consider a few key factors:
1. How to Start the Process
Review your tenancy agreement to check for any prohibitions before initiating a sublet. If there are none, contact your landlord or property manager to discuss your situation. Submit your sublet request in writing, including your plans for filling the vacancy.
2. There Are Risks Involved
Subletting carries inherent risks, including potential loss of control over the property, missed rent payments and property damage. Subletting without the landlord’s permission can result in fines of up to $1500.
3. Finding a Reliable Candidate
As the original tenant, you remain on the tenancy agreement and become the landlord to the subtenant. Therefore, it’s your responsibility to ensure rent payments are on time and the property is well-maintained. Finding a trustworthy subtenant is vital. Consider asking your personal network or using platforms like TradeMe to find suitable candidates.
4. Checks Are Essential
Once you’ve identified a potential subtenant, a responsible property manager should perform necessary tenant checks, including gathering references from previous landlords, confirming proof of identity, conducting credit checks, and requesting permission to obtain a Ministry of Justice Criminal Record Check to ensure the candidate’s good character.
5. Landlords Can Set Conditions
While landlords cannot unreasonably decline a sublet request, they can impose reasonable conditions. For instance, they may require the subtenant to cover any increased insurance premiums associated with subletting. Landlords can also ask to review the sublet agreement before granting permission.
Subletting can be a valuable option for renters in New Zealand, providing financial relief during vacations or temporary absences. Understanding the rules and responsibilities associated with subletting is crucial for both tenants and landlords. By following these guidelines and maintaining open communication, you can ensure a smooth subletting experience while adhering to the legal requirements of New Zealand’s rental laws.