APIA Blog

RSS Feed

Tenant's 'shadow' partner - guarantor or joint tenant?

Tuesday, March 12, 2019

IMG CREDIT: UNSPLASH

This week's question comes from Kelly (paraphrased): 

 

I have a lady tenant with kids who would prefer not to put her partner’s name on the tenancy agreement because her WINZ supplement would then be discontinued. I think she will need his income to be able to afford the property and if he is staying there I want him to be responsible for the rent, damage etc. Is it a good idea to add the partner as a guarantor on the agreement? If so how would one word that agreement?

 

Katrina O'Connor from Barfoot & Thompson kindly responds below: 

 

 

In shared tenancies, the best practice is to ensure that all tenants are named on the tenancy agreement so you benefit from the protections of “jointly and severally” liable. If the partner will be residing in the property this is the best course of action.

Usually, a guarantor is a parent or someone with assets so that in the event that the tenant breaches the terms of the Tenancy Agreement and the Residential Tenancies Act 1986, the Guarantor shall be liable for breach as if it were a party to the Tenancy Agreement. The Guarantor shall indemnify the Landlord for any liability or loss suffered by the Landlord as a result of or arising from any breach.

** Note ** When a beneficiary receives more money than they are entitled to due to not telling Work and Income they have a spouse or partner - for example, a woman in a de facto relationship while on the DPB, this is known as “Relationship fraud".

From 7 July 2014, a “relationship debt sharing” law has allowed Work and Income to investigate and prosecute both the client and their partner for benefit fraud. This applies to all debt where an investigation clearly shows that the partner has knowingly benefitted from benefit fraud.

 

If you have further questions feel free to contact koconnor@barfoot.co.nz.

Additional comment from the APIA: 

As an organisation, we do not condone fraudulent practices of any kind and caution landlords strongly against knowingly becoming associated, in any way, with fraudulent practices. Additionally, it looks as if your tenant is going to be hard pressed to meet weekly rent payments as they are. Considering rent is the primary cash source for many landlords, common sense would suggest that she poses too much of a risk and that an alternative candidate be considered for the tenancy. 

Do you have any tenancy related questions? Write to us at admin@apia.org.nz or hit us up on our social channels here and here

 

Recent Posts


Tags

property maintenance principal and interest ring-fencing interest only cash-flow investor skill shortage rent government Q&A Sponsored post buying rules extractor fan renovation lvr minor dwelling rta insurance p lab equity data security Must know CoreLogic housing bubble negotiation Standards New Zealand productivity holiday house subdivision reserve bank heating scotney williams HHS finance cat robert kiyosaki bad tenant parry v inglis letting buyer's agent property management asbestos nzpif market CCC wins tenant DTI ask an expert tenancy issues property cycle debt enforcement personal growth Property (Relationships) Act Investor story clnz watercare bond television auckland council letting fee inspection heater relationship property value bond form sale and purchase investment strategy market rent trust business education landlord TCIT meth contamination beginner investor Market report election 2017 unitary plan fixed-term tenancy Holler building water bill property auckland mortgage return house prices boarding house gluckman report insulation Landlording financial advisers act rta reform trademe shower dome sale and purchas Kris Pedersen Mortgages and Insurance Investment tip Question and answer partners tax warm up new zealand legal LIM advice development damage anz capital gain initio ocr RTAA 2019 tenancy tribunal sublease smoke alarm rent increase HSWA interest rates HHGA cgt ird maintenance tenancy services buying positive cash flow Jeff Bezos housing affordability rent arrears twg report off the plan worksafe short-term rental airbnb trespass first home buying income speculator Guest blog Tribunal case study Must knows privacy warren buffett winz ventilation management banking wealth creation Editor's Choice rental wof rental market structure How to

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo Keith Hay Homes logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited