Easier Bonding at Home
Landlords and tenants could benefit from the introduction this month of an alternative to the traditional Department of Building and Housing (DBH) administered bond system.
Already in use overseas, SmartBond works to remove troublesome payment scenarios between landlords and tenants by offering landlords a full five weeks cover for unpaid rent or wilful damage, in return for a small weekly premium. Premiums are calculated as a percentage of a tenancy’s weekly rent at 2 per cent.
An additional option of rent protection insurance (premium 0.5 per cent) also gives landlords the security of knowing that their tenant’s rent will be paid (up to a maximum of 12 weeks), should the tenant become redundant, bankrupt or disabled.
Based on a similar system employed in Switzerland, Belgium and the UK, the system also offers tenants the additional benefit of applying for pre-approval as a SmartBond tenant. The tenant is issued with a SmartBond Approval Certificate that they can use to streamline future dealings with potential landlords.
For more information visit www.smartbond.co.nz.