One of the properties had rotting weather boards. Photo / MBIE
The tribunal accepted evidence the company raised maintenance and repair issues with property owners, who delayed or refused repairs because of the cost.
However, the adjudicator said agents may not always be protected for the actions or inactions of their clients when those actions or inactions resulted in non-compliance or harm to a tenant.
The adjudicator said property managers shouldn’t prioritise client relationships over statutory compliance.
There were multiple maintenance issues. Photo / MBIE
The tribunal also found the company committed further breaches by requiring an unlawful rent increase in respect of one tenancy, adding unenforceable clauses in tenancy agreements in respect of eight tenancies, and unlawfully terminating a room-by-room tenancy without grounds.
Tribunal investigations team manager Brett Wilson said Good Girls Property Management had an obligation to ensure the properties it managed were compliant with the Residential Tenancies Act and that any non-compliance is addressed in a timely manner.
“This is an experienced property management company who should be aware of their obligations under the Act.
“If a property owner refuses to address clear breaches of the Act, property managers should keep clear records and, if necessary, end the relationship with that client.”
Pru Morrall, from Good Girls Property Management in Christchurch.
Wilson said the company treated the tenancy as a boarding house tenancy, which had different termination rights, despite being unsure about the classification of that tenancy.
“The adjudicator said Ms Morrall ‘clearly had doubts’ about whether she was correct in taking the action she did and knew she should not terminate the tenancy.
“This order reinforces that property managers have a clear professional obligation to act when they become aware of breaches.
“Turning a blind eye is not an option.”
Al Williams is an Open Justice reporter for the New Zealand Herald, based in Christchurch. He has worked in daily and community titles in New Zealand and overseas for the last 16 years. Most recently he was editor of the Hauraki-Coromandel Post, based in Whangamatā. He was previously deputy editor of the Cook Islands News.
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