Is this Legal?

[ilusiv]

This ad from Ray White seems off to me....

http://www.trademe.co.nz/property/residential-property-to-rent/auction-1008842434.htm

Charging 50 per week for water and rent of $600, then combining those to come up with four weeks bond?

I thought that was illegal...

Rung the agent who assured me it was quite legitimate and that I was wrong.

Unusual from a large Property Management firm....

[AlFa]

Charging tenant fixed part of water rates is not allowed. But I think they messed up with wording - most likely they mean they will charge $50pw for consumption of water. But still it's questionable since they can't charge you more than you actually used up

[Shalodge]

I'm confused. Why not just charge $650 pw rent and don't worry about the water? What's the reasoning here, Tax implications, something else?

Russell

[AMR]

It does seem to be $650 per week with water included, but they probably want to advertise at $600 per week to get the advertisement to pop up in the right price search.

[Shalodge]

Ok... So misleading advertising then? Anyone got the Commerce Commission email?

Russell

[ilusiv]

Ok... So misleading advertising then? Anyone got the Commerce Commission email?

Russell

My main concern is that if they are saying the 50$ is for water it isn't part of the rent.... Therefore they are illegally asking for more than 4 weeks bond (4 x 600 = 2400) and they are asking for the weekly water charge to be included and asking for 650 x 4.

[Shalodge]

Ok then .. rent my place .. 3 brm on the beach at Ohope .. $50 per week. (Plus garage @ $200 pw, plus Vege garden and shed $250 pw)

[Perry]

C'mon, Russell - you missed one bit.

T&C Apply.

[ivanp]

Most likely reason why they are asking fixed payment for water: in addition to the advertised part, the property has a 1-bedroom granny flat with its own living room, bathroom and even laundry. Granny flat is not a separate household, so it doesn't have its own water connection to the street, and probably doesn't even have a check meter installed, so there's no way to measure actual water consumption separately. I wonder if they have one or two hot water cylinders

[Wayne]

Ok then .. rent my place .. 3 brm on the beach at Ohope .. $50 per week. (Plus garage @ $200 pw, plus Vege garden and shed $250 pw)

Sounds good so long as you make the small print bits optional

[Wayne]

$50/week for water is huge isn't it?
It's a bit of a rout.
(Which is actually the wrong use of the word but sounds better than 'rip off')

[drelly]

$50/week for water is huge isn't it?
It's a bit of a rout.
(Which is actually the wrong use of the word but sounds better than 'rip off')

The word is "rort"

[Wayne]

Ah yes - that's the one

[Nick G]

$2.5K per year for water is taking the mickey. I would counter by saying you're happy to pay the water bill for the property and for them to simply forward the invoice from council.