Login with RealMe®

To access the Procurement online service, you need a RealMe login. If you’ve used a RealMe login somewhere else, you can use it here too. If you don’t already have a username and password, just select Login and choose to create one.

What’s RealMe?

To log in to this service you need a RealMe login.

This service uses RealMe login to secure and protect your personal information.

RealMe login is a service from the New Zealand government that includes a single login, letting you use one username and password to access a wide range of services online.

Find out more at www.realme.govt.nz.

Lease and facilities management: Scenario 1

Scenario 1 shows the steps an agency should follow during a rent review.

When Brendon arrives at work and turns on his computer, a ‘calendar reminder’ comes up reminding him to check the alerts in the Government Property Portal (GPP).

On opening the alerts, Brendon notices that a rent review is coming up in one month’s time for a site he manages in Auckland.

Brendon locates the associated lease within the GPP and familiarises himself with the rent review provisions which specify that the rental must be reviewed to market. Brendon notes that there is no ratchet clause.

One week later Brendon receives a rent notice from the landlord advising that a rent review is due and that based on valuation advice, the annual rental will decrease by $20,000.

Brendon notices that the landlord has not provided evidence of the proposed rental and emails the landlord requesting to see a copy of the valuation report. Brendon advises the landlord that he will be obtaining independent valuation advice before responding to the landlord’s rent review letter, and that he will respond to the landlord’s rent notice within the 20 working days as specified within the lease.

Once Brendon receives a copy of the valuation report from the landlord, he drafts and sends an email to three valuers who he knows have the required experience to undertake a market rental valuation of the premises, requesting a quote. Brendon provides each valuer with the building name, physical address, area of land leased and the term of the lease. Brendon engages the valuer who comes back with the best quote and can meet the required timeframe. Brendon provides her with the information she requires for the rental assessment (a copy of the lease, a copy of the valuation report obtained from the landlord and details regarding the costs spent on the building by the tenant over the lease term that could impact on the rental assessment).

One week later, Brendon receives the valuation report which indicates a decrease in the annual rental by $40,000.

Brendon sends a letter to the landlord advising him that based on independent valuation advice, the agency believes that the new annual rental should decrease by $40,000, not $20,000. Brendon attaches a copy of the rental valuation report and reminds the Landlord that he has 10 working days to respond in writing as stipulated in the lease.

The landlord responds within 5 working days and advises Brendon that he does not agree with his valuer’s assessment. The landlord suggests that as per the provisions of the lease, the valuers should meet to discuss how the rentals were derived and ascertain whether the discrepancy in the valuations can be resolved and a rental agreed. Brendon agrees.

After numerous meetings between the valuers, the valuers recommend the parties agree to an annual rental decrease of $34,500.