How Landlords Can Avoid Delays and Fines This Holiday Season

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As the holiday period rapidly approaches landlords should be aware of potential delays in serving notice and the importance of appointing a representative for extended holidays. Here’s how to avoid seasonal traps.

Avoid Delays When Serving Notice in the Holiday Period 

Landlords and home occupiers should be aware of a quirk of tenancy law, which impacts the service of notice during the holiday period. 

While under the Residential Tenancies Act, the notice period itself never changes, the SERVICE of that notice can change and may cause considerable delays at this time of year. This is relevant for all types of notice – including notices to vacate and for arrears - and also applies to tenants giving notice. 

Service Period Extension 

Essentially, under the law, if someone is not seen as served by the 22nd of December, you must add all the days between 23 December and 3 January to the service period. 

Here’s an example: If you posted a 28-day notice on the 20th of December this year, you would have to include four working days for service, then notice kicks in the day after that.  

Therefore, the four working days after the 20th of December would be the 6th to the 9th of January, with the notice period beginning after these dates. 

In total, it would be 49 days from when the notice was posted to the end date of the tenancy. 

However, if you emailed the notice before 5pm on the 20th, it would be seen as served the same working day and the 28-day notice period would begin from then. 

Crockers’ View 

To avoid substantial delays, Crockers recommends email as your preferred service method, supported by a posted notice.

Avoid Fines While Going on Holiday

Another trap to be sure not to fall into this holiday period is failing to appoint a representative when going on an extended holiday. 

If you’re a private landlord about to set off on holiday for more than 21 days, you may be fined if you don’t appoint a representative.  

Private landlords who take an extended break of more than 21 consecutive days must ask someone to manage their property in their absence.  

Steps to Take Before Going on Holiday 

Before you go on an extended holiday you need to: 

• Appoint a representative
• Let your tenants know you’re going away
• Notify the bond centre if this is where your bond is held. 

If you fail to take these steps, then under the Residential Tenancies Act you could be liable for exemplary damages of up to $1500. 

Read more: How Can Landlords Avoid Fines When Going Overseas? 

Crockers’ View 

If you already have a property manager, such as Crockers, then the process is easy. Simply let us know you are going away, as we are already appointed as your representative. If you don’t have a property manager and you’re going away for much longer than 21 days, it’s worth considering engaging one. After all, it’s a lot to ask a friend or family member to be on constant call when they’re not being paid. 

FAQs

1. How do holiday periods affect the service of tenancy notices in New Zealand?
   During the holiday season, tenancy notice service times are extended because the days between 23 December and 3 January are excluded from the service period calculation under the Residential Tenancies Act.
   
   
2. What steps must landlords take before going on an extended holiday?
   Landlords must appoint a representative, notify tenants, and inform the bond centre if their bond is held there. Failing to do so could result in exemplary damages of up to $1500 under the Residential Tenancies Act.
   
   
3. Why is email the preferred method for serving tenancy notices during the holiday period?
   Email ensures quicker service as notices served via email before 5pm on a working day are considered served that same day, avoiding delays caused by the extended service period during holidays.

Need a hand managing your rental property? Reach out to our PM Business Development Team at pm@crockers.co.nz or call for a chat on 09 623 5952.