A rental is advertised at $720 a week (an invented figure). At the viewing, the property manager tells applicants that 'offers above the advertised rent will be looked at favourably'. What is the legal position?
Correct Answer
D) Inviting rent above the advertised figure is an unlawful act under section 22G.
Section 22G(1) says a landlord (including an agent) must not invite or encourage anyone to offer rent above the amount stated in the advertisement. Doing so is an unlawful act, so the Tribunal can award exemplary damages. The prohibition is on the landlord's invitation, not on tenants.
Why This Is the Correct Answer
Section 22G makes it unlawful for a landlord or agent to invite or encourage rent bids.
Why the Other Options Are Wrong
Option A: It is lawful, because the advertised rent was stated as required by section 22F.
Stating the rent satisfies s 22F, but s 22G separately bans inviting or encouraging higher offers.
Option B: It is lawful if every applicant is given the same chance to make a higher offer.
Treating applicants equally does not help; the invitation itself is what s 22G prohibits.
Option C: It is an offence only if the property manager actually accepts a higher offer.
The breach is inviting or encouraging bids; no higher offer needs to be accepted.
Background Knowledge for Property Management
Source: https://www.legislation.govt.nz/act/public/1986/0120/latest/whole.html
Exam Tip for Property Management
Rent bidding: the landlord must not ask for it, even informally.
Common Mistakes to Avoid on Property Management Questions
- •Thinking rent bidding is only unlawful once a higher offer is accepted.
More Property Management Questions
How long does a landlord have to lodge a bond with Tenancy Services after receiving it from a tenant?
Which of the following is a mandatory requirement for all rental properties under the Healthy Homes standards?
A periodic tenancy began 8 months ago and the rent has never been raised. If the landlord gives written notice today, when is the earliest a rent increase can take effect?
A property manager discovers a tenant has been subletting rooms without permission for 6 months, generating significant income. The head tenant is otherwise compliant and rent is current. What factors would most influence the Tenancy Tribunal's decision on termination?
Under the Residential Tenancies Act 1986, what is the most a landlord can charge as a general bond (not counting any separate pet bond)?
- → Which of the following is NOT a mandatory requirement for tenancy agreements under the Residential Tenancies Act?
- → How much notice must a landlord give a tenant before conducting a routine property inspection?
- → A tenant has given 21 days' notice to terminate a periodic tenancy but wants to leave 5 days early. What must happen for this to be legally acceptable?
- → A tenant claims bond refund for $1,200 but the landlord disputes $400 for carpet cleaning. The tenant disagrees and applies to the Tenancy Tribunal. What happens to the bond during this dispute?
- → How often may a landlord carry out routine inspections during a tenancy?
- → A landlord wants to increase rent for a periodic tenancy. What is the minimum notice period they must give?
- → During a property inspection, a property manager discovers the tenant has installed a spa pool without permission. What is the most appropriate first step?
- → By what date did all private rental properties in New Zealand have to comply with the healthy homes standards?
- → A property manager conducts an inspection and finds the tenant has installed a heat pump without permission. The tenancy agreement prohibits alterations without consent. What can the landlord legally require?
- → During a property inspection, a landlord notices the tenant has changed the locks. Under what circumstances is this legally permitted?
People Also Study
Property Law & Legislation
56 questions
Agency Practice
89 questions
Sale & Purchase Process
63 questions
Professional Conduct & Ethics
46 questions
Related Study Resources
Previous Question
A rental has an open fireplace. The tenant would like to use it in winter. Under the healthy homes draught-stopping standard, what applies?
Next Question
A tenant asks in writing to put up a baby gate and screw-in picture hooks. The property manager has not replied after three weeks. What is the position?