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For sharing market rent with a friend, sub-tenant, flat-mate or boarder you need the landlord’s permission. Reduce rent by following these tips for subletting or assignment.

 

Sharing Market Rent

Money is tight, what can Renters do?

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Are rents transparent?

 

We talk about Market Rents, right? Market rent statistics of the government website are fascinating—they don’t tell you anything about “value for money”. It is just a statistic from lodging the bond with the tenancy services. NZ’s market rents include (or hide) everything and only exclude metered services like electricity, consumer’s subscriptions such as phone lines, Internet access, SKY television and so on.

 

If you want to compare the rents in different countries with NZ, you will find it very difficult as illustrated here. NZ’s market rents lack of transparency, don’t reflect value for money and are hard to compare. For instance European models outline “cold” or “warm-rents” (inclusive/exclusive heating) and local services are directly charged to residents such as water, council levies, management, etc.  The market rent in NZ is totally disconnected from the quality of a rental property (replacement or rebuild value) and does not show the value for money. 

 

If you want to enquiry the market rent for a two-bedroom house in Taupo-Central the statistic shows a median rent of $240 per week as listed below.  That is all what the statistic shows.

http://klausterproperties.info/

Klauster Properties Ltd - Renter’s Blog

Rent or Own - Decision at some stage in life?

 

Options for renters to reduce housing costs

 

When money is tight homeowners can defer expenses for maintenance and repair, save by DIY and consider to take a flat-mate or boarder to help managing bills. Renters who are paying “all-in-one” rents have a problem here.  For sub-letting they need the landlord’s written consent and DIY etc are not options at all.

 

If you as tenant have an unsecured financial future, you need to discuss the option of subletting with your agent/landlord before money becomes a problem. The last option is to downsize into a smaller rental home before your credit rating or reputation has been compromised.

 

 

What is subletting or assignment?

 

Subletting is when sharing a tenancy with another person, and assignment is when in your absence somebody else takes over your tenancy. It might work well  when you plan it very carefully:

 

· You look for a new and modern rental that is too pricy for you alone, but is good located, has minimum two bathrooms and offers privacy. Dual apartments or townhouses built in multiple levels work very well.

 

· You sign a tenancy which does not prohibit  subletting and you obtain a written permission from your landlord

 

· You take as “official” tenant the legal responsibility and obligations for the tenancy and the sub-tenant signs up to obey your “house rules”

 

When maintaining a trustworthy relationship, the landlord might give you a helping hand if all parties involved share the benefits.

 

 

Sub-tenant, Flat-mate or Boarder?

 

A boarder is someone who rents a room (private home or boarding house). Usually kitchen and laundry facilities are shared. With changes to the Residential Tenancy Act (RTA) since October 2010 some boarding situations are now covered by the RTA. Be aware of that.

 

A flat-mate is someone who shares a house with others, “rent by room” is quite common for students contributing equally to rent and expenses.  To differentiate a boarder who sub-rents from the legal occupant, flat-mates share equally. 

 

What you want is to take control over the situation, your home and everything that happens. Flat-mates might deal with the landlord directly out of your control. 

 

Regarding the rules the tenancy agreement sets the frame (allowing pets, maximum number of people, etc) but you should apply your house rules with the sub-tenant in writing.

 

Before moving in the “sub-tenant” should sign an Inspection Report to  prevent disputes about stains, damage, and so on.

 

Note: If there is damage done to the property by the sub-tenant then the tenant on the tenancy agreement is liable.

 

 

Take away

Renting is based on relationships. The biggest distortion for good relationships are cultural and in this case renter’s cliches. Make your personal obstacles and market rents working for you. It’s your life, good luck.

 

 

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Renter’s Blog lead to a real person, IT professional, investor, landlord and business owner with interests in sharing experiences. Life is a dream with a deadline, happiness comes from making the right choices and having realistic expectations.

 

Confession: I have been a happy renter for more than 25 years before buying a family home and later becoming involved in property investments and developments.

 

I used to live in apartments or rental homes, worked in many different countries and experienced different housing standards and renting cultures. I would love to see a social and legal frame work around housing policies that supports renters and landlords alike.

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