Tenants living at a Rotorua rental complex are being offered alternative accommodation after an investigation began into living conditions at the property.
Ministry of Business, Innovation and Employment, the investigating agency, says the premises does not have consent for its current use.
Visions of a Helping Hand, which sublet theproperty, has offered tenants alternative accommodation at a “similar rent in a similar location”.
In June, five tenants at 99 Lake Rd - formerly Utuhina Hot Springs Fishing Lodge and now sublet by Visions of a Helping Hand - hit out over their living conditions, describing them as “unfair and unacceptable”.
Cockroach infestations, cold showers, a leaky roof, and sleeping with a hammer for safety were some of the conditions they claimed to be living in. At the time, Visions said tenants’ complaints could be directed to the Tenancy Tribunal.
MBIE’s tenancy compliance and investigations team started investigating.
The Rotorua Daily Post reported in June that J C Realty, as Central City Rentals, manages the complex on behalf of the owner. J C Realty owner Paul Carter said it had a tenancy agreement with Visions of a Helping Hand.
At the time, Visions of a Helping Hand was not contracted by the Ministry of Housing and Urban Development to run the property and it was not one of the properties contracted by the ministry for emergency housing.
MBIE tenancy compliance and investigations national manager Brett Wilson said the premises was “not consented for their current use” and alternative accommodation was being sought for the tenants who wanted to move.
“The Tenancy Compliance and Investigations Team (TCIT) does not usually make further comment while an investigation is ongoing, as this could prejudice our investigation and/or impact on the enforcement outcome.”
The team had provided “guidance and instruction” to enable work on compliance with the Residential Tenancies Act 1986 while some tenants continued to live at the property, he said.
Some tenants had chosen to move out after being offered alternative accommodation - which they had the right to accept or refuse, he said.
“While this is a complex investigation, we are continuing to work to ensure that any identified non-compliance is managed and that the interests of tenants are protected.”
Wilson reiterated tenants could continue to reach out for support on any concerns related to the tenancy.
A sign out the front of the site. Photo / Andrew Warner
A tenant, who spoke on condition of anonymity, said she was nervous about having to pay more in rent if she shifted.
The woman said a Visions staff member visited the property in October telling tenants they were going to “move us all out”.
She said she wanted to stay until the lease expired in August but was told by the staff member they were “going to break the lease”.
The woman said she was nervous about having to pay more in rent if she moved to another property. She paid $350 a week for her unit at 99 Lake Rd.
“What we pay here in rent is affordable. We don’t want to be struggling again,” she said.
Rotorua Lakes Council community and regulatory services manager Kurt Williams told the Rotorua Daily Post it had been “made aware” of the tenancies, the TCIT investigation and “previous intended voluntary movement of tenants” at 99 Lake Rd.
He said if any residential tenancies remained resource consent would be “required under the District Plan and would be followed up”.
He said the council was “supportive of compliance with relevant legislation” and referred all questions relating to the Residential Tenancies Act to MBIE.
The Rotorua Daily Post Weekend asked the council why the premises did not have consent for its current use. Williams responded by saying, “This question should be directed to the owners/operators of the premises”.
A written statement from the Visions of a Helping Hand board of trustees said it had the head lease of 99 Lake Road, granting “affordable subleases to tenants who otherwise would have occupied contracted emergency housing”.
“It was understood at the time that the head lease was taken on, that the property could be used for the intended purposes.”
Since taking on the head lease, MBIE had contacted Visions and the organisation was “working with them in relation to their investigations,” the statement said.
It said visions had offered tenants the opportunity to move to alternative accommodation at a “similar rent and in a similar location”. Some had accepted this offer.
The board could not comment in relation to “any matters relating to particular individuals” for privacy reasons.
City Central Rentals owner Paul Carter said the fixed-term agreement ended on September 2023.
Asked if the rental company was aware the premises did not have consent for its current use, Carter responded the landlord was “working through this” with a lawyer and council. He could not provide further comment.
Carter said the tenancy agreement was compliant and insulation had been done where possible. He said the company’s tenant was Visions and it managed its own tenants within the property.
“We have not asked the tenant to move out or to threaten to end the tenancy early.”
He said MBIE had not been in touch with the company.
