Wellington Property Investors' Association

04 472 9877 answerph

wellington@nzpif.org.nz

News & Updates

Recent updates

07-10-2009

It can be tricky finding the ideal tenant

Home leasing with HNZ

With Housing New Zealand's Home Leasing scheme, we lease your property from you directly for up to 10 years. That means we'll find a tenant for your property ourselves, and you'll never have to go chasing after rent again.

We lease privately-owned houses in areas where demand for affordable rental housing is high. Our leases last for at least five years, resulting in stable, long term continuous rent regardless of vacancies.

The lease programme provides an opportunity for property owners who want to lease their property in return for guaranteed rent 52 weeks a year.*

How does it work?
Before we lease your house, we need to decide if it's suitable. Things we look for in a house include:

  • The location of the home and proximity to schools, shops, and public transport
  • The demand for housing in the area
  • Size of the house.

If we are interested, we will arrange to visit the property. We may recommend some modifications before agreeing to lease it.

If the property is suitable, we both sign a Memorandum of Lease.

What is a Memorandum of Lease?
This is a formal contract that gives us access to the rental property for a defined period, and explains the terms, length and conditions of the lease agreement.

Click here to view our lease agreement "Home Lease Programme Lease" (Word  Document, 264kb)

Can property owners get out of the lease before it expires?
No. Once a lease is signed, there is no opportunity for vacant possession during the lease term. It has similar legal implications to a commercial or retail contract for leasing a factory, office or shop.

Can property owners sell during the lease period?
Yes they can, however the lease will continue with the new owners and on the same terms and conditions until it expires. Leases for more than five years are registered on the house's certificate of title.

What happens when the lease ends?
When the lease ends, we will return the property in the same condition it was originally, less normal wear and tear.

What payments do property owners get?
Our payments to property owners are based on market rental rates less a lease margin. A lease margin is usually between 8-10 percent of weekly rent and covers the cost of tenancy management, bad debt and vacancies. The market rental rates are set by an independent valuer. For longer than five year leases we will negotiate. Lease payments are monthly and paid in arrears. They are based on occupancy of 52 weeks a year, even if the property is vacant. We both have the option of requesting a review of the market rent each year.

Who organises and pays for repairs and maintenance?
If there is a health and safety issue (for example a gas leak, blocked drains or electrical faults), we consider it urgent and will arrange for the work to be done immediately.

We charge the property owner for this work unless it is due to damage caused by the tenants, in which case we charge the tenants.

If maintenance work is required due to normal wear and tear, we will let you know. The work will need to be organised by you at your cost.

What areas are most popular for the Leasing programme?
We lease homes in Auckland, Christchurch, Nelson, Napier, Wellington, Tauranga, Hamilton, Whangarei and New Plymouth. Most lease properties are two, four or five bedroom stand-alone houses.

To find out more, contact Housing New Zealand
If you have a rental property that you are interested in leasing to Housing New Zealand, please call us on 0800 801 601 for more details.

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