property management
📖 What is property management? Meaning and definition
Property management involves an agent or company taking responsibility for various aspects of a rental property. While the property owner is typically the 'landlord', a property management business can also be considered a 'landlord' in certain situations, especially when appropriate, as defined by the relevant legislation. This means they might be able to bring claims or be held liable in legal proceedings, depending on the specific circumstances and the principles of agency law.
The relationship between a property manager and the property owner is governed by agency law, which includes common law rules and specific definitions within tenancy legislation. A tenancy agreement might describe the property manager as an agent or intermediary acting on behalf of the owner. However, the legal position can be more complex and nuanced than it appears on the surface, requiring a detailed understanding of agency principles.
In practice, a property manager might be responsible for tasks such as collecting rent, managing rubbish disposal, or handling other aspects of facility management. For instance, if a claim for rent arrears is made, the property manager would need to provide sufficient evidence, like an updated rent summary, to prove the tenant owes rent. Failure to do so could result in the claim being dismissed. Similarly, a property manager could be engaged to manage common areas or services within a complex, acting as a service contractor to the owners.
📋 Requirements
- The property management business acts as an agent for the property owner.
- The tenancy agreement describes the property manager's role, often as an agent or intermediary.
- The property manager must provide sufficient evidence to support claims they make, such as rent summaries for arrears.
- The property manager's actions and liabilities are assessed based on common law rules of agency and specific tenancy legislation.
📝 Procedure
- A property owner engages a property management business to manage their rental property.
- The property manager acts on behalf of the owner, potentially collecting rent or managing services.
- If a dispute arises, the property manager may bring a claim or be held liable, depending on their legal status as a 'landlord' under agency law.
- In legal proceedings, the property manager must present evidence to support their claims, such as proof of rent owed.
💡 Examples
- A property management company successfully claims for rent arrears against a tenant, but only after providing a detailed rent summary to the Tribunal.
- A property manager, acting as an agent for the owner, is found not to be a 'landlord' on the face of the tenancy agreement, but a deeper look into agency law reveals a more complex situation regarding their liability.
- A facilities management company, engaged by unit owners, manages rubbish storage and disposal at a complex, addressing nuisance concerns raised by tenants.
- A claim for rent arrears brought by a property manager is dismissed because they failed to provide an updated rent summary to prove the tenant owed rent.
❓ Frequently asked questions
Can a property manager be considered a 'landlord' in New Zealand?
Yes, while the property owner is usually the landlord, a property management business can also be considered a 'landlord' in appropriate circumstances, especially under the extended definition in relevant tenancy legislation.
What is the role of agency law in property management disputes?
Agency law, including common law rules, is crucial for determining whether a property manager can bring a claim or be held liable. The specific terms of the tenancy agreement and the nuances of agency principles are considered.
What kind of evidence does a property manager need to provide in a rent arrears claim?
A property manager needs to provide clear and updated evidence, such as a rent summary, to prove that a tenant owes rent. Without sufficient proof, a claim for rent arrears may be dismissed.
Do property managers only handle rent collection?
No, property managers can handle a range of responsibilities, including rent collection, facilities management (like rubbish storage and management), and other services related to the upkeep and operation of a rental property or complex.
What happens if a property manager fails to prove their claim?
If a property manager, acting on behalf of the landlord, fails to provide sufficient evidence to support a claim (for example, for rent arrears), the claim may be dismissed by the Tenancy Tribunal.