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A real estate agent has generated scorn and ridicule online by attempting to charge a sizeable move-in cost, including a bond, for the rental of a car park - not a residence.
Auckland Harcourts sales consultant Gary Chung advertised the car park for rent online in a Facebook group.
Therent per week was listed as $90, but what shocked people was the extra costs Chung listed.
“Move-in cost: $450 ($270 bond plus 1st and 2nd weeks’ rent).”
A senior representative Harcourts Three Kings, where Chung is a sales agent, told the Herald leasing the car park was a “private arrangement” Chung had made with the apartment owners and had nothing to do with the agency.
“The bond mentioned in the Facebook (post) for the car park is a refundable security deposit on the rental and the remote,” the family member said.
“The money is kept in the client’s account with receipt.”
“Move-in cost? It’s a bloody car park. It doesn’t cost $450 to do a little bit of paperwork. Greed everywhere,” one commenter said.
“Are you kidding, [a] move-in cost for a carpark,” another person said.
A property at the same address as the car park was listed as sold on Chung’s online profile, but the car park was not listed for sale on the Harcourts website.
Auckland Harcourt real estate agent Gary Chung surprised people when he charged a "move-in cost" for a car park.
“The property management [of this apartment] is not under Harcourts, Gary is not a property manager under our branch,” the Harcourts Three Kings senior representative said.
“He is working for us as a real estate salesperson only.”
The Ministry of Business, Innovation and Employment [MBIE] said that tenancy laws do not apply to car parks.
“The leasing of individual car park spaces that are not part of a residential tenancy agreement is outside the jurisdiction of the Residential Tenancies Act 1986,” MBIE said in a statement.
“In situations that are not covered by the act, then any money taken as a bond should not be lodged with Tenancy Services.
“This may create difficulties with getting the bond back, as the framework for processing refunds and resolving disputes will not apply.
“Bonds that do not relate to a living or residing situation will be returned.”
The Tenancy Services website states the purpose of a bond is to cover unpaid rent, damage to the property or any claims relating to the tenancy.
“Tenants who have looked after the house, paid rent in full and paid any amounts owing should get a refund of their bond when the tenancy ends.”
But because the bond for a car park isn’t covered under tenancy law, the renter would be reliant on the person renting the car park to return the bond if they no longer wanted to rent the park.
When asked if people could charge whatever they want for the rental of a car park, MBIE said that “traders are free to set the price of the goods or services they are selling”.
Consumer NZ said the rental of car parks is covered by contract law.
“Car parks are not covered by tenancy law, so contract law applies. A bond might not just cover damage, but late payments too,” a Consumer NZ said in a statement.
Consumer Protection NZ says that under contract law, consumers should ask if the deposit will be refundable and make this a term of the contract.
Generally, a deposit is not refundable and is a partial payment towards a good or service, while a bond is refundable.
