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Disclaimer: Educational purposes only. Not legal advice. Consult a qualified NZ legal practitioner for your specific circumstances.

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tenancy

Can a landlord charge for internet if it’s shared?

Key Takeaway

In New Zealand, a landlord can charge for shared internet if the tenant agrees, the charge doesn't exceed the landlord's cost, and it's clearly stated in the tenancy agreement. This falls under the rules for charging for services, ensuring transparency and fairness regarding utility payments.

Charging for Shared Internet in New Zealand Tenancies

In New Zealand, the question of whether a landlord can charge for shared internet is governed by the Residential Tenancies Act 1986 (RTA). This legislation outlines the rights and obligations of both landlords and tenants in a residential tenancy, which is an agreement where a tenant pays rent to occupy premises [Source: Residential Tenancies Act 1986, s 2]. Generally, landlords can charge for services like internet, but specific conditions must be met to ensure transparency and fairness.

Understanding Rent and Other Payments

Rent is defined as any money or value of any consideration paid or payable for the right to occupy premises [Source: Residential Tenancies Act 1986, s 2]. The RTA specifies what payments a landlord can require from a tenant. Beyond rent and a bond (a sum of money held as security against damage or unpaid rent), landlords are generally prohibited from requiring other payments unless explicitly permitted by the Act [Source: Residential Tenancies Act 1986, s 13].

Internet as a Service in Tenancies

Internet is considered a service supplied to the premises. The RTA distinguishes between services that are separately provided to the premises and those that are not. A tenant is generally responsible for paying for services like electricity, gas, and telephone if they are separately metered or separately provided to their specific premises, and if the tenancy agreement specifies this [Source: Residential Tenancies Act 1986, s 40(1)(f) and (g)].

However, in the case of shared internet, the service is typically provided by the landlord to the premises as a whole, rather than being separately provided or metered to each individual tenant or room.

Conditions for Charging for Services (Including Shared Internet)

For a landlord to lawfully charge a tenant for a service that is not separately provided or metered to the tenant's specific premises, three key conditions must be met [Source: Residential Tenancies Act 1986, s 13B]:

  1. Tenant Agreement: The tenant must agree to the payment for the service.
  2. Cost Recovery Only: The payment required from the tenant must not exceed the actual cost to the landlord of providing that service. This means landlords cannot profit from charging for services like internet.
  3. Specification in Tenancy Agreement: The payment for the service must be clearly specified in the written tenancy agreement (the contract between a landlord and tenant that sets out the terms of the tenancy).

If these three conditions are met, a landlord can lawfully charge for shared internet. For instance, if a landlord pays $100 per month for an internet connection shared among four tenants, they could charge each tenant $25 per month, provided this arrangement is agreed to and specified in the tenancy agreement of each tenant.

Transparency and Agreement

It is crucial that all charges, including those for shared internet, are clearly outlined and understood before a tenancy agreement is signed. A tenancy agreement should specify not only the amount but also how the charge is calculated, especially for shared services. Lack of clarity or an agreement not meeting the above conditions could result in the charge being unenforceable by the landlord.

Dispute Resolution

If a tenant believes they have been unfairly charged for shared internet, or if there is a dispute regarding the terms of a payment for services, they may apply to the Tenancy Tribunal. The Tenancy Tribunal is a judicial body that resolves disputes between landlords and tenants [Source: Residential Tenancies Act 1986, Part 4]. It can make orders regarding the payment or refund of money and interpret the terms of tenancy agreements.

When to Seek Independent Legal Advice

Individuals seeking to understand their specific rights and obligations regarding residential tenancy matters, particularly concerning charges for services like internet, are encouraged to consult with experts. The Tenancy Tribunal provides information and resolves disputes, and Community Law Centres offer free legal advice. It is recommended that individuals contact these resources for personalised guidance on their unique situation.

Key Resources