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  1. #1
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,037

    Default COV Requested for Electricity Meter That Hasn't Been Used for 6 Months

    Hi guys,

    I kicked a tenant out a while back. This is a retail tenancy.

    I've got a new, much better tenant in there now but the place has been empty for just over 6 months.

    And they went to put the meter in their name last week with their supplier who is Meridian Energy who say they need a COV:

    A COV is a Certificate Of Verification, some more details below for you.
    Relates to the electrical safety of the whole property
    Verifies the safety of all internal wiring
    Completed by an Electrical Inspector
    Commonly issued for properties disconnected for over 6 months
    Required for any changes to mains connection into the property



    It was rewired 8 years ago, then the tenant have done their fitout and replaced most of it. So most of the wiring is like 2 weeks old!

    Has anyone seen this? Do I have to get this? Seems like just another stupid thing to spend money on.

    Any advice appreciated.
    Squadly dinky do!

  2. #2
    Join Date
    Mar 2015
    Location
    Brisbane Wellington Auckland
    Posts
    673

    Default

    The insurance company (Aon) has asked my tenants to supply this too.
    Difference is the power has not been disconnected
    The tenants are not happy having to supply

  3. #3
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,037

    Default

    I've looked into this a bit further.

    1) The power at my place has not been disconnected either. Just not in anyone's name for a bit over 6 months. But I have been using power in there, had contractors in there etc.

    2) So this means they shouldn't be asking for this. But they sometimes get confused between the power being 'inactive' and 'disconnected'.

    3) Yes sometimes insurance companies require it! I guess they are concerned about electrical fires starting and so want to know what they are insuring. See here for instance: https://cov.electricalinspectors.net.nz/


    So I don't reckon I need one at my place, but if the electricity suppliers (all the main ones) really say they want it, then I might have to get it done.
    Squadly dinky do!

  4. #4
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,037

    Default

    By the way Beano, that property I was looking at went for a 6.97% return.

    This is based on what the property might have let for.

    The tenant bought it.

    I'm finding the way agents are selling these properties just now is to ignore the current rent being paid (which is usually low - and usually a short term lease, perhaps monthly, or only 6 months to go on lease term) and market the thing based on what they think the rent should be and so expect purchasers to apply a cap rate to that.

    Which I find really annoying. They should use the rent actually being paid I reckon. And then if the purchaser buys it, they then get the upside of increasing the rent. Not having to already buy at an inflated price and maybe getting the rent to match some time later!
    Squadly dinky do!

  5. #5
    Join Date
    Mar 2015
    Location
    Brisbane Wellington Auckland
    Posts
    673

    Default

    The agents choose the higher of actual or market rental.
    To be able to sell at a higher price of course !

  6. #6
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,037

    Default

    Quote Originally Posted by Beano View Post
    The agents choose the higher of actual or market rental.
    To be able to sell at a higher price of course !
    I guess it's their job to get the highest price. But this never used to be done.

    As a purchaser, one could argue that if there is a new notional higher rent, then the tenant would be paying that.
    Squadly dinky do!


 

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