Good Morning [Name of Owner]

On behalf of Goodwins, please find Brendan’s assessment of rental value for the upper unit at [Property Address] if you make decision to transition from Airbnb-styled stays, to long term tenancy arrangements:

In further detail of the conversation raised by Brendan of whether or not Goodwins can act on your behalf, as Managing Agent, I am sorry to confirm that it appears from our initial review that [Property Address] is not legally consented for permanent habitation, under 2 separate tenancy agreements.

Noting, for purposes of the Residential Tenancies Act, the moment you have a second dwelling on the same site, it raises question over the lawfulness of both units.

Rather, you can have one tenancy that covers ‘the whole’; or, an owner would be legally permitted to reside in one, and rent the remaining of house under a hybrid form of Tenancy Agreement, where you can choose to ‘contract in’ to the Act. Thereafter, deciding whether the whole Act or just certain sections will apply to their living situation.

Previously, we recommended use of a lodger’s agreement, and a great summary of the same can be read here; but, even this form of agreement has now been thrown into disarray by enactment of the Residential Tenancies Amendment Act 2019, and its interpretation of unconsented dwellings.

This is just one part of a wider issue currently raising  difficulty for property managers, as we are increasingly required not to rely simply on information given by clients. The firm view of our legal counsel now being that the Tenancy Tribunal will be assigning this responsibility of evidence directly onto property managers.

The information we can gather from Property Guru (http://www.property-guru.co.nz) identifies [Property Address] as a single unit, and one property for the purpose of your Rates Valuation (please refer attached pdf):

Valuation Address: 19 COSTLEY STREET FREEMANS BAY AUCKLAND
Valuation Reference: 12/6500090000
Legal Description: LOT 2 DEEDS REG P66 177M2
TA Name: Auckland
Tenure: Not Leased (Owner is Occupier)
Floor Area: 104 m2
Land Area: 177 m2
Building Age: 1900 – 1909
Category: Residential, Dwelling, average (RD)
Wall Material: Weatherboard / AVERAGE
Roof Material: Steel / G-Iron / GOOD
Contour: Level
Land Use: Single Unit excluding Bach
Zoning: Residential (9A)

We certainly want to make no presumptions in this regards; so, please seek if you do have any other written confirmation from Auckland Council that 19 and 19A Costley Street have:

  1. Resource Consent, if they needed one, and/or,
  2. A Building consent and, that this Building Consent was signed-off; and
  3. The Building consent was for permanent habitation of both 19 and 19A, not some lesser form of habitation (e.g. sleep outs).
  4. A CCC issued, or, equivalent (if the second dwelling was converted prior to 1993), or perhaps it had an acceptance certificate issued, if it couldn’t  get a CCC.

I am otherwise sorry that we cannot offer further services whilst the property is essentially split into 2.

Should that change in the future; then, of-course, we can revisit to assess renting the whole of the property under one tenancy agreement.

Please do not hesitate to request if I can provide any further detail or, assistance at this time.

I am available by reply e-mail, on DDI 09 815 2871, or, on mobile 021 437 710.