I wanted to share a story with you about a client that I recently worked with. The client, who I will call John, had recently shifted to Dunedin. He had come from the central North Island to take up a position as a manager with the company he was employed by. John had approached our budgeting service because, despite earning a good salary, he was unable to pay his power bills on time. I was able to access a fund local fund provided by our City Council to help with his immediate need and pay his overdue power bill, however this was not going to provide a long term solution for John.
How high is too high?
John lived with his wife and teenage daughter. Being new to Dunedin, John didn’t know what sort of power bills to expect but was shocked when he received $500 – $600 power accounts each month. He was used to paying in the region of $150 and explained that he and his family were doing everything in their power (excuse the pun) to keep their power usage down. He explained he was showering as little as possible, turning everything off at the wall when possible and they were using blankets instead of the heat pump. After investigating John’s power account it struck me as being very high for a small family of three.
Technology to the rescue
Knowing that John’s electricity supplier was currently installing smart meters in Dunedin, I asked him if he by chance had one. He did, so I showed him how to install an app on his smart phone that can show your electricity usage from monthly right down to hourly. What I noticed was that even at night time John and his family were still using a lot of power. This was very strange because everything was switched off. Having come across this issue before, I advised him that there may be faulty wiring, a problem with the hot water cylinder, or maybe a fault with the heat pump?
Tenants have rights too!
John asked me what he could do about this. I explained to him that tenants have rights. Landlords among other things must ensure that the plumbing, electrical wiring and the structure of the building is safe and working. As we suspected an issue with the plumbing or wiring we could request that the landlord have this looked at. John’s landlord was in Auckland and was paying a property management company to look after the property for him. We contacted the property manager and requested that they have the power consumption issue looked at and fixed. The property manager came back to us and told us that the owner had recently spent money on the property and was not willing to have any further work done. I explained to John that this was not good enough.
Stand up for your rights
I downloaded a 14 Day Notice form from the Department of Building and Housing website www.dbh.govt.nz . We requested that the property manager address John’s issue or he would be going to the Tenancy Tribunal and would be asking to be released from his lease. The 14 days came and went with no word coming from the property manager. We applied online to the Tenancy Tribunal for a fee of $20.44, giving all of the relevant facts in the application and shortly after John received a date for a Tribunal hearing. I attended the hearing with John where the property manager tried to argue that John had wanted out of his lease the whole time. The adjudicator was quite firm with the property manager and advised that landlords have responsibilities just like tenants do. The adjudicator made a decision in John’s favour and ordered that he be released from his tenancy and be reimbursed the $20.44 that he paid for his application. John was so delighted that the next day he brought his wife in to meet me and at Christmas he dropped in with a card and a box of chocolates.
So what kind of assistance can a budgeting service offer?
Well as you can see budget advisers do more than play around with numbers. We can help in all sorts of ways and if we can’t, we can try and point you in the right direction. Of course you need to play your part too and be willing to engage in the process.