Tenancy Debt Protection Pack
Due to an increase in tenant defaults and tribunal issues around the country, Rental Managers are pleased to announce that they have undertaken initial steps of launching their Tenancy Debt Protection Plan for Landlords.
How does it work?
At times, when a tenancy ends, we go to the Tenancy Tribunal for various issues relating to the tenant at the property. If the tenant is found to be liable at the Tenancy Tribunal, Rental Managers will pay the owner based on debts proven as detailed in a sealed Court Order (sealed court order is what the adjudicator awards to the owner) up to the following limits:
Rent ($500 per week rent limit): Up to 6 weeks rent
Interior Cleaning: Up to $250
Carpet Cleaning: Up to $250
Gardening and Rubbish Removal: Up to $250
General damage and locksmiths: Up to $500
Once a sealed Court Order is made, we will credit you or the unpaid contractors for work needing to be carried out, or that has been carried out.
If the sealed Court Order is for costs over and above the limits set above, or are for costs not covered, then the debt outstanding can still be pursued by the owner, or on the owners behalf utilising a debt collection service like TPS Credit Control (Tenancy Services).
Once the owner is paid in full, it is accepted that the debt is assigned to Rental Managers who will pursue the tenant for costs described in the sealed Court Order. Any bond money will be paid to the owner first, and if they have been paid in full, the rest will be paid to Rental Managers to help recover the tenant debt.
What is not covered?
Rental Managers Tenancy Debt Protection Plan is not an insurance policy, and you need to ensure that you still have the appropriate insurances in place. The Tenancy Debt Protection Plan does not cover:
- Costs incurred by tenants that were not put in by Rental Managers
- For rent when the property is vacant
- Damages from earthquakes, fires or floods (and all other natural disasters)
- Costs to owners/owners agent where the Tenancy Tribunal has awarded in the tenants favour for failing to comply with the Residential Tenancies Act.
Why would you utilise the Tenancy Debt Protection Plan?
Rental Managers has an excellent record for collecting rent and pursuing debts awarded at Tenancy Tribunal hearings. However, at times, chasing costs can be a long process and when costs come at once, financially it can be a struggle on an owner to pay them. Have the Tenancy Debt Protection Plan means for a small weekly cost (billed monthly), you can be guaranteed peace of mind knowing you are covered for costs as set out in the ‘How does it work’ section.
What is the cost of the Tenancy Debt Protection Plan?
In order for this to be successful, it has to be priced reasonably for property owners so that it is a smart and cost effective way to reduce risk.
The cost is $3.50 + GST per week per property (billed monthly).
Please show your interest
If you have not done so already, fill in the form below saying you are interested in this service (or if not interested, please also let us know).
We want to keep the Tenancy Debt Protection Plan simple and easy to understand and have it at a price that is reasonable and affordable for all property owners.