What are my obligations as a landlord?
Initio’s landlord insurance policy requires landlords to meet the ‘Landlord Obligations’ for cover under the Landlord Protection and Meth Contamination extensions. The cover in these extensions are:
- Malicious damage by tenants, and associated loss of rents.
- Theft by tenants.
- Loss of Rent following a tenant vacating the property.
- Loss of Rent following a tenant eviction for non-payment of rent.
- Meth Contamination, and associated loss of rents.
If a landlord has a property manager, it is usually the property manager’s responsibility to meet the obligations. Otherwise, the landlord will need to meet these themselves.
If you don’t meet the Landlord’s Obligations all the standard cover included in the policy remains in place. You are still covered for natural disasters such as an earthquake as this does not involve the risk of the tenant. However, if you do NOT meet the obligations but then lodge a claim for meth contamination at your property, your claim may be declined.
You, or the person who manages the tenancy on your behalf, must:
- Exercise reasonable care in the selection of the tenant(s) by at least obtaining satisfactory identification and written or verbal references for each adult tenant and when a reasonable landlord would consider it appropriate also check their credit and Tenancy Tribunal history.
- Keep written records of pre-tenancy checks conducted for each adult tenant, and provide to us a copy of these if we request it.
- Collect a total of 3 weeks’ rent in any combination of rent in advance and bond that will be registered with Tenancy Services.
- Complete an internal and external inspection of the home at a minimum of 3-monthly intervals and the relevant residential dwelling upon every change of tenant(s).
- Keep photographs and a written record of the outcome of each inspection, and provide us a copy of these if we request it.
- Monitor rents on a weekly basis with written notification being sent to the tenant(s) whenever rent is 14 days in arrears, together with a personal visit to determine if the tenant(s) remains in residence.
- Make application to the Tenancy Tribunal for vacant possession in accordance with the provisions of the Residential Tenancies Act 1986 if:
(a) the rent is 21 days in arrears, or
(b) you become aware of any illegal activity by the occupant(s) at the home, or
(c) intentional damage to the home is caused by the occupant(s).
If the home is provided to and occupied by your employee as part of their employment package with you, then obligations 3, 6. and 7.(a) do not apply.
If the home is occupied by short-term paying guests such as a AirBnB or BookaBach, then the obligations do not apply to have cover for damage and theft by guests.