Authority Test

1. MANAGEMENT

The owner appoints Inspire Property Management Limited (hereinafter referred to as the Property Manager) to act as the Owners Representative upon the terms herein provided for the renting, tenanting, and managing of my/our property or properties detailed in the Property Management Agreement under section

I/we acknowledge that with this appointment the Property Manager, under the terms of the Residential Tenancies Act, shall be deemed to be the Landlord. I/We agree to pay the charges as prescribed herein by Inspire Property Management Limited unless the agreement is terminated in writing.

2. FEES

The following charges will be charged by the Property Manager:

1. The Property Manager is hereby authorised to deduct from all income collected (including rents and water contributions) management charges for the management of the property set at _____ % (plus GST) of all rents collected.


2. Fees relating to advertisement of the property including but not limited to Trade Me, newspaper and credit checks relating to prospective tenants.


3. A fee equivalent to one weeks rent plus GST on the procurement of a new tenant and/or tenancy.


4. Undertaking an inspection of the property once every _____ months and providing to the landlord a written report of the findings for a fee of $40 plus GST per every inspection.

There are no charges made for the following services:

1. Marketing your property’s availability for rent on www.inspireproperty.co.nz


2. Conducting an unlimited number of viewing appointments showing prospective tenants your property.


3. Attending Tenancy Tribunal Hearings or Mediation on behalf of the Owner or as a witness.


4. If specified we can make payment on behalf of the Owner (as a regular disbursement to the Owner) of rates, body corporate levies and insurance.


5. Postage of notices to the Tenant.


6. Preparing and forwarding monthly account statements by post or email.


7. Detailed annual income and expenditure statements.


8. Signage on the property


9. Arranging of repairs and maintenance

Inspire Property management shall be entitled to review its fees by giving one months’ notice in writing.

3. REPORTING

The Property Manager will pay into the account provided all receipts less disbursements by the end of the 1st working day of each month.

In addition to this there will be a payment made on the 16th day of each month. Please note that if these payments fall on a weekend or a Monday then funds will not clear in your account until the Tuesday.

The Property Manager is required to provide the owner with an itemised monthly statement, to be sent by the 5th working day of each calendar month showing all monies collected, all charges deducted, and all accounts paid. If at any time the disbursements are in excess of the rents collected the owner hereby agrees to pay such excess promptly upon demand of Inspire Property Management Limited.

4. INSURANCE

The Owner acknowledges that they will contact their insurers to notify them that the property is now tenanted to ensure that at all time the premises and chattels are adequately insured, inclusive of loss of rent and malicious damage.

5. PROPERTY MANAGER’S AUTHORITY

The Property Manager is authorised to:

1. Select tenants and enter into and sign Tenancy Agreements for the Property.


2. Collect and lodge rental bonds in accordance with the provisions of the Residential Tenancies Act (1986).


3. Collect rents due and issue receipts for monies collected.


4. Periodically review the rent when considered appropriate.


5. Serve notices upon Tenants.


6. Initiate the refund of the bond monies to the tenant with the Ministry of Housing – Tenancy Services, upon satisfactory completion of the tenancy; and where necessary to lodge claims against bond money under the rules of the Residential Tenancies Act 1986.


7. Exercise the Landlord’s right to serve Terminate Notices on tenants and make applications to the Tribunal for any Tenancy matters. I/we agree to pay for costs occurred in taking this action and to be bound by any agreement reached in mediation and/or decisions made by the Residential Tenancies Tribunal.


8. Respond to claims by tenants in the jurisdiction of the Residential Tenancies Tribunal and represent the Owner in any such proceedings.

6. REPAIRS

The Property Manager is authorised to make or cause to be made any repairs or maintenance on the property, to purchase supplies and to pay all accounts therefore. The Property Manager agrees to secure prior approval of the Owner on all expenditure exceeding $300.00 +GST for any one event, except monthly operating charges and/or emergency repairs in excess of the maximum if, in the opinion of the Property Manager, such repairs are necessary to protect the property from damage or to maintain essential services to the tenants as called for in their Tenancy Agreement.

7. INSPECTIONS

1. The Property Manager is authorised to carry out inspections of the property as set out in clause 5 to ensure the property’s continued wellbeing, and to recommend to me/us any repairs and maintenance they deem to be required.


2. If the Owner asks the Property Manager to carry out a pre-settlement inspection on any property purchased by the Owner, the special terms set out in the Schedule to this Property Management Agreement will apply to that inspection.


3. The Owner acknowledges that if:
   
   
   
   1. the Property Manager gives the Owner the opportunity to instruct the Property Manager to carry out a healthy homes inspection of the property; and
   
   
   2. the Owner elects not to so instruct the Property Manager, or declines to follow the Property Manager’s advice to the Owner as a result of such inspection, the Property Manager will have discharged its obligations to the Owner in respect of compliance with the healthy home standards and the Owner will remain solely liable for such compliance.
   
   
   
   


4. The Owner agrees to fully indemnify the Property Manager against any suits, proceedings, claims, demands, fines, costs (including legal costs) and expenses suffered or incurred by the Property Manager arising out of the application of the healthy home standards to the property.

8. ASSIGNMENT

The owner hereby agrees that the agent has the right to assign this agreement to a third party without limiting the owner’s rights to terminate this agreement subject to those provisions contained in section 10 of this agreement.

9. PROPERTY MANAGER LIABILITY AND INDEMNITY

1. The Property Manager will not be liable to the Owner for any indirect or consequential loss the Owner or anyone else suffers as a result of, or in connection with, the performance or exercise of any of the powers, duties or authorities of the Property Manager under this agreement.


2. If the Property Manager is liable to the Owner for any reason (including under the law of contract, tort (including negligence) or otherwise) the Property Manager’s liability will not exceed, in aggregate, the total amount of fees paid by the Owner to the Property Manager for the services in respect of which that liability arose.


3. The Owner indemnifies Inspire Property Management Limited against all suits, proceedings, claims, demands, fines, costs (including legal costs) and expenses whatsoever which may be taken or made against Inspire Property Management Limited through the course of or arising out of the performance exercising of any of its powers, duties or authorities of Inspire Property Management Limited listed as the Property Manager herein.


4. The Owner acknowledges that this authority is subject to the Residential Tenancies Act 1986 and any other Act passed by Parliament affecting residential tenancies.

10. CANCELLATION

Subject to the provisions of this clause this authority shall be for an initial fixed term of twelve months from the date of the commencement of this authority and during this period the owner shall not be able to terminate the agreement early by the giving of a notice. Thereafter, either party shall be able to terminate this agreement on three months notice in writing and shall be sufficiently served by being delivered or posted to the current address for the owner referred to in this authority and in respect of the agents, to the agent’s current address.

If a dispute between the owner and agents shall arise, affecting or concerning the safety of the tenant or the tenancy premises, and such dispute cannot be resolved to the satisfaction of the agent then the agent and at the agent’s sole discretion shall have the right to terminate this management authority forthwith by the agent giving written notice in terms of this paragraph.

11. UNINHABITABLE PROPERTY(IES)

Where a property becomes uninhabitable and rent abates, in accordance with Section 59 of the Residential Tenancy Act, a one-off charge shall apply for work carried out by IPML to remedy issues related to uninhabitability to the Landlord in lieu of commission charges.

Section 59 Destruction of premises

1. Where, otherwise than as a result of a breach of the tenancy agreement (whether for a fixed-term tenancy or a periodic tenancy), the premises are destroyed, or are so seriously damaged as to be uninhabitable,
   
   
   
   1. The rent shall abate accordingly; and
   
   
   2. Either party may give notice to the other terminating the tenancy.
   
   
   
   


2. Where a landlord gives notice of termination under subsection (1), the period of notice shall be not less than 7 days.


3. Where a tenant gives notice of termination under subsection (1), the period of notice shall be not less than 2 days.


4. Where, otherwise than as a result of a breach of the tenancy agreement, the premises are partially destroyed, or part of the premises is so seriously damaged as to be uninhabitable,
   
   
   
   1. The rent shall abate accordingly; and
   
   
   2. Either party may apply to the Tribunal for an order terminating the tenancy, and the Tribunal may make such an order if it is satisfied that it would be unreasonable to require the landlord to reinstate the property or (as the case may require) to require the tenant to continue with the tenancy albeit at a reduced rent.