With record rent prices continuing to rise around New Zealand, landlords and property managers can face serious consequences if they engage in rental bidding.
Under section 22F a landlord must display the rental price on all advertising – including For Rent signs.
This new section states that a landlord must not encourage a tenant to pay more than the advertised amount.
If they do so, they could potentially be liable for:
- Exemplary damages of up to $1500.
If you advertise the rental property at a particular price, then you must not say anything which could be construed as encouraging a higher amount.
For example, if tenants in Auckland come to look at a flat in Mission Bay up on the hill, the landlord says to the applicants:
“Remember the America’s Cup is on – rents in this area might very well go up, so you better make your best offer.”
Words, deeds or acts which might increase the rent advertised could be seen as breaches of this section.
So, can a tenant make an increased offer? Watch the full Snippet training in Total Tenancy.