Many legal minds making NZ LAW work

We are an association of independent legal practices, proactively sharing ideas and expertise for the benefit of our clients.

What are you rights when your tenants don't pay up?

Published: 7th August 2017

Published in: Property e.Speaking | Issue #25

Renting out residential property is a great way to make some extra money, pay your mortgage off faster and build an investment nest egg. It can cause real frustration, however, when your tenant fails to pay rent on time.

To avoid costly delays, you should know the steps to take that will allow early intervention to either get the rent payments back on track or to bring the tenancy to an end.

Early intervention is key when it comes to dealing with rent payment problems. Your tenancy agreement should clearly state how rent is to be paid and when. You should also keep and monitor rent records so you will know straight away if your tenant falls behind in payments. If your tenant does miss a payment the first step is to contact them to find out the reason for that missed payment and to make a payment plan. If your tenant doesn’t pay the overdue rent, below is a guide to help fix the problem.

First steps

You can send a letter via email (if the email address is listed on the tenancy agreement) notifying your tenant that they have 14 days to pay the overdue rent (this is known as a 14-day notice to remedy). If you have the read receipt setting on, you will receive confirmation that the email has been opened.

Further steps you can take

If your tenant doesn’t pay after receiving a 14-day notice to remedy, or if they are more than 21 days behind in rent, you can apply to the Tenancy Tribunal for a mediation between you and your tenant.
If an agreement is reached to repay the overdue rent, a mediator’s order documenting the discussions will be issued. You can request for the order to be ‘sealed’, which means you can enforce it through the Ministry of Justice enforcement process if your tenant doesn’t follow the terms of the order.

If an agreement cannot be reached at mediation, the matter may be referred to a hearing. An adjudicator will hear the case and consider factors including the reasons for the missed payments, your tenant’s financial position and whether your tenant will repay their overdue rent before making an order. The order either set out the terms of your tenant’s repayment obligations and/or be for a possession order for your tenant’s eviction.

FastTrack Resolution

The FastTrack Resolution is a slightly different process which suits situations where you and your tenant make your own agreement about repaying the overdue rent, without the assistance of a mediator.

You can apply online to have your agreement formalised through the FastTrack Resolution provided the agreement records the amount of rent that is outstanding, details of how the outstanding rent will be repaid, the date repayments will begin and the consequences if any payments are missed. You will also need to notify your tenant that you are applying to have the agreement formalised through FastTrack.

On receiving your application, a mediator will contact your tenant to ensure they understand and agree to all conditions of the agreement. The mediator will then record the agreement in a mediator’s order and notify the parties that it has been formalised.

The advantage of the FastTrack Resolution process is that it allows landlords and tenants to make their own agreement and have it formally recorded as a binding and enforceable agreement without having to attend mediation.

What if my tenant breaches an order?

If your tenant doesn’t follow an order made by a mediator or the Tenancy Tribunal, you can get your order enforced through the Collections Unit of the Ministry of Justice. Where your tenant doesn’t follow an order to repay their overdue rent, you can apply for an attachment order. Attachment orders require your tenant’s employer to deduct a specified amount from their wages and pay that amount directly to you.

Failing to vacate your property?

Ultimately you can apply for a possession order that requires your tenant to vacate the property, If your tenant won’t vacate your property after being ordered to do so, you can apply for an eviction warrant. If successful, this will enable a court bailiff to return possession of the property to you.

Don’t let the stress get to you!

It can be incredibly frustrating to chase up overdue rent. However it doesn’t need to cause you endless stress and worry. If you have to deal with tenants who won’t pay their rent, it’s easy to follow this relatively straightforward procedure. Essentially it all comes down to ‘pay up or leave the property’.

 

Related Articles

  • Auckland
  • Bay of Plenty
  • Canterbury
  • Coromandel
  • Gisborne
  • Hawke's Bay
  • Kapiti Coast
  • Manawatu - Wanganui
  • Marlborough
  • Nelson
  • Northland
  • Otago
  • Southland
  • Taranaki
  • Waikato
  • Wairarapa
  • Wellington
  • West Coast

DG Law

David Graham and his secretary started out in a small office in Panmure in 1984.  We now have a large team covering a broad range of the law.

Our vision is to provide a prompt, efficient and effective solution to our clients' legal needs.  Our standard of work is high and clients can be confident they will receive the following when dealing with the DG Law team:

  • Care
  • Courtesy 
  • Prompt Communication 
  • Honesty, and 
  • Trust

Region: Auckland

Phone: 09 574 5316

Kaimai Law Limited

Kaimai Law Bethlehem has been based in Bethlehem, Tauranga for nearly a decade, and our new office at The Lakes opened in March 2017.  The majority of lawyers in our professional team at Kaimai Law Bethlehem & Kaimai Law The Lakes has 10 to 30+ years of experience in their respective fields, which means that they have the knowledge required to give you legal advice you can trust. 

Kaimai Law Bethlehem & Kaimai Law The Lakes specialise in all property matters including conveyancing, finance and subdivisions, as well as family law, commercial law, estate planning, estate administration, trusts, wills, employment law and relationship property. Kaimai Law Bethlehem & The Lakes are your one stop law shops in Tauranga.

Region: Bay of Plenty

Phone: 07 579 3316

RSM Law

RSM Law is considered one of the most client focused law firms in South Canterbury. Established in 1883, the firm has played an integral part in the growth and development of South Canterbury, and beyond.

RSM Law's expertise covers all areas of the law, with particular emphasis on business law (including company law, small business and compliance); property law (rural and commercial property, and home buying and selling); litigation; resource management issues,(Carbon Accounting and Emissions Trading) estate planning, wills and trusts; infrastructure and syndication; and personal legal services.

Region: Canterbury

Phone: 03 687 9777

Purnell Lawyers

There is nothing as inevitable as change. Since opening for business early last century, we at Purnell Lawyers have seen many changes both in name and in the people who have made up the members of our team. We have been privileged to have served the public throughout all of these times. 

We are confident that we will continue to bring top quality legal services to our clients well into the future.

Region: Coromandel

Phone: 07 868 8680

Woodward Chrisp

At Woodward Chrisp we strive to meet the needs of our clients by providing a wide range of high quality legal services within a supportive and collaborative environment.

Woodward Chrisp is the amalgamation of two long established Gisborne legal firms: Woodward Iles & Co and Chrisp and Chrisp. Today’s partners are Ross Revington, Adam Simperingham, Jeff Allen and Ellie FitzGerald.

Region: Gisborne

Phone: 06 869 0900

Gifford Devine

For all life’s matters, the team at Gifford Devine have your back. Since 1896, our lawyers have been providing straight-talking, practical advice and advocacy to people, families and businesses in Hawke’s Bay.

As your legal champions, we’ll serve you as a trusted adviser, listen to your needs, offer plain English advice, and find a solution to get you the best possible outcome.

We have the expertise to identify potential legal issues, to help you make important decisions, and to realise your goals. We’re your legal champions for all reasons and at all stages of life.

Region: Hawke's Bay

Phone: 06 873 0420

BMC Lawyers

BMC lawyers has built a reputation for providing quality service and delivering real results. Our strength is our broad-ranging legal experience that gives us the ability to match clients with the right mix of legal skills for their particular needs.

Our legal professionals are passionate about what they do and work alongside a talented team of support and administration staff to make a real positive difference to our clients.”

Region: Kapiti Coast

Phone: 04 296 1105

Horsley Christie

Horsley Christie is a successful law firm based in Whanganui which offers a diverse range of legal services to the Whanganui Region and beyond and has done for over 100 years.

When you deal with Horsley Christie you do so in the knowledge that the firm is one of many law practices nationwide who are members of NZ LAW.

Region: Manawatu - Wanganui

Phone: 06 349 0090

Wain & Naysmith

Based in Blenheim, Wain & Naysmith Lawyers is a full service law firm, and a powerhouse for property, family and business law.

We pride ourselves in providing clear and cost effective legal solutions and practical advice for you, your family and your business.

Region: Marlborough

Phone: 03 520 6103

Knapps Lawyers

As a firm, we promise to look after you and treat you in a manner that we would expect to be treated by a professional services provider; we promise to use every available legal remedy available to us to resolve your issue and to do what you ask us to do in a timely manner.

We will hold in strict confidence all information that we acquire through our work for you and which concerns your business or personal information.  The only exceptions are where you authorise us to disclose such information or where we must do so by law.

Region: Nelson

Phone: 03 544 7888

Law North Limited

We pride ourselves on being a "general store" for most legal issues but also have several in-house experts in specialised areas including trusts, relationship property, business and property law.  No matter what your issue is - whether you are looking for trusted legal advisers to steer you through life, or you have a one-off problem to sort out - we would be pleased to help.

Law North Ltd provides a broad range of legal services across the Far North district from our base in Kerikeri.   We have operated in the area for over 100 years and have a long-standing history of providing legal services to a diverse client base, including businesses and private clients.   Our directors and their families have been part of the Bay of Islands community for several generations and remain committed to the area and its people.  We often call upon strong local knowledge to resolve issues for clients whilst remaining vigilant about client confidentiality.

Region: Northland

Phone: 09 407 7099

Sumpter Moore

Sumpter Moore is based in South Otago and has a proud history of having provided a broad range of legal services to personal clients and businesses since 1873. Generations of families have been able to rely on our advice and assistance, because Sumpter Moore has stood behind that advice for over 100 years.

Sumpter Moore has fully serviced offices in both Balclutha and Milton, our relatively small size means we can work closely with our clients and you know who will be personally responsible for your legal affairs. It allows us to have close control over the quality and timeliness of the advice you receive.

Region: Otago

Phone: 03 418 0066

Sheddan Pritchard Law Ltd

Incorporating traditional values and a fresh perspective, Sheddan Pritchard Law is here to assist you with all your legal needs. 

Our friendly and team-driven approach underpins our firm’s values, recognising the importance of putting people first and allows us to connect and nurture professional relationships with new and existing clients within our local community of Gore, as well as throughout New Zealand and extending overseas.

Region: Southland

Phone: 03 209 0030

Welsh McCarthy

Welsh McCarthy practises in Hawera, South Taranaki. Predominant industries in the South Taranaki district are dairy farming, oil and gas. The South Taranaki area also has the largest one-site multi product milk processing facility in the world

We deal with company and commercial transactions, commercial and family law, farm and residential sales and purchases, estate planning and family and charitable trusts. A large part of the firm also deals in the area of family law.

Region: Taranaki

Phone: 06 278 5039

Le Pine & Co

Le Pine & Co is the largest provider of legal services in the Taupo District, having provided legal services in the Taupo District and the Central North Island since 1953. Le Pine & Co is a full service firm, providing legal services in most areas of the law. The Le Pine & Co team offer a variety of specialised services from offices in Taupo, Putaruru and Turangi. The team are solution focused and will help unravel the mysteries of the law for you.

Le Pine & Co enjoys supporting and contributing to the Taupo community and many of its organisations. Building bike trails with Bike Taupo, setting up trusts for inspiring local projects, supporting the youth of Taupo - the team at Le Pine & Co gets involved in its community in a wide variety of ways. 

Region: Waikato

Phone: 07 378 5030

Gawith Burridge

Gawith Burridge traces its history back to 1875 when Charles Gawith first set up his practice. Since then the firm has undergone many changes, including a merger between Gawith & Co and Burridge & Co in 1998 to form our current practice.

Our firm draws on the breadth of expertise available from some of the region’s most senior legal practitioners, as well as the skills of those who have moved here from larger corporate environments.

As a result, we provide clients with a comprehensive range of legal services right here in the Wairarapa. We can provide you with legal assistance whether you are an individual or a company, with everything from setting up a Will to selling your farming business. 

Region: Wairarapa

Phone: 06 370 0000

Greg Kelly Law Ltd

Greg Kelly Law Limited is a boutique Wellington law firm specialising in trust and elder law. Our practice areas are wills, estates and trusts.

We act for private and institutional clients establishing and administering trusts, wills and estates. We also provide quality advice to legal and accounting firms in New Zealand and overseas. In particular, we can assist with legal opinions, obtaining and resealing probate, and estate and trust litigation.

Region: Wellington

Phone: 04 499 5193

Hannan & Seddon

The Law Firm of Hannan & Seddon dates back to September 1867.

The firm's offices were in Werita Street from 1867 until 1982 when the firm moved to Tarapuhi Street and then to its current spacious premises at 61 Guinness Street in 1998.

The name Hannan comes from Mr Michael Hannan whose son John Hannan (Jack) joined the firm in 1908. Jack Hannan remained in partnership until he passed away in 1974 at the age of 90!

The name Seddon comes from Mr T E Y Seddon (son of Premier Richard John Seddon from Kumara) who joined the firm in the 1920's. The other prominent Solicitor at Hannan & Seddon was Cyril McGinley who joined the firm in the late 1920’s and retired as a Consultant in 1997 aged 87.

Currently we have two Partners within our firm. Tony Sullivan who has been with us for 29 years and Colin Smith, 26 years. The firm also has two long serving Legal Executives Elaine Knowles and Beverley Walsh.  

Region: West Coast

Phone: 03 768 4169

All the information published on this website, or in any article herein is true and accurate to the best of the authors' knowledge. Information on this site should not be a substitute for legal advice. No liability is assumed by NZ LAW Limited, or individual NZ LAW member firms for losses suffered by any person or organisation relying directly or indirectly on information published on this site. Views expressed in any article are the views of the authors individually and do not necessarily reflect the view of NZ LAW or their member firms. Information appearing on this site may only be reproduced with prior approval from NZ LAW Limited Head Office, and credit being given to the source. © NZ LAW Limited