Leaking sewage at the back of a Leith St, Dunedin property rented by eight second-year students.

A landlord and property manager involved in a settlement with a "toxic" student flat are behind another house that reportedly had a leaking wastewater pipe.

Tim Coslett lives in a $1.1 million home in Christchurch, a world away from the flat his company Blackdog Properties owns in the heart of Dunedin's student quarter.

The flatmates at the Leith St house spoke with Stuff following a story about another Blackdog Properties' flat involved in a legal dispute.

The nine female flatmates at the Queen St property received a confidential settlement after raising issues of toxic mould, leaking wastewater and the property management.

SUPPLIED The house is owned by Blackdog Properties, which also owns the Queens Dr, Dunedin flat where nine tenants received a confidential settlement after raising issues of toxic mould and leaking wastewater.

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Their issues struck a chord with the eight second-year students living at a "s… flat" on Leith St, where each of the young men have been paying $161 a week since January 8.

The previous tenants, who they said paid $135 a week, warned them of rats and the ever-present cold inside the ageing property.

But the tenants, who signed the lease midway through last year, were not prepared for what they were to experience in 2018.

They said a possum took up residence in a bedroom, a leak developed in two bedrooms and waste from two toilets started leaking.

The leaking sewage ended up pooling at the back of the property and into the neighbouring Leith River.

STUFF Melanie Coslett, a Christchurch-based shareholder and director of Blackdog Properties, which owns the Leith St and Queens Dr properties.

The flatmates allege it took a month until property manager Paul Reuben, of Student Accommodation Ltd, arranged for the pipes to be fixed.

The students said the smell was horrendous, with the waste killing the grass.

"You could see it flowing out every time we flushed the toilet," one of them said.

They said two bedrooms also developed leaks, which also took weeks to fix.

HAMISH MCNEILLY/STUFF The Queen St, Dunedin house rented by nine female students that was found to be leaky and mouldy.

Another room, which had no curtains nor power, had a hole in the ceiling where they said a possum snuck in at the start of the year.

The tenants said they had little to do with the landlord, but were concerned over the tenancy manager not acting on their requests.

The students said they were spending $360 on power each month and that was without heating the home, which was always cold.

While they said a cold flat was hardly a surprise, leaking rooms and waste water were not expected.

Reuben, of Student Accommodation Ltd, said while he could talk about the Leith St flat, he could not talk about the Queen St settlement.

HAMISH MCNEILLY/STUFF The property manager of both properties, Paul Reuben of Student Accomodation Ltd.

"It is a very unusual situation. I have never come across a property where there has been this kind of reaction or this kind of result from a leak or something like that".

As soon as he was aware of issues with the Leith St flat he "immediately got somebody onto it".

A contractor was sent to inspect the problem, but the issue was compounded by consent required from the neighbouring properties, he said.

"The owner has gone to an enormous amount of expense here."

HAMISH MCNEILLY/STUFF Student Accommodation Ltd in Dunedin.

Reuben justified the Leith St price as it was a coveted eight-bedroom property with "demand driving up pricing".

Both properties had a rateable value of $740,000, with Blackdog Properties also owning two other Dunedin homes.

Blackdog's Tim Coslett could not be reached for comment.

Last week Stuff went to Coslett's house in Northwood, Christchurch seeking comment over the Queen St settlement.

STUFF The $1.1 million Northwood, Christchurch home of Coslett and her husband Tim Coslett, who is also a shareholder and director of Blackdog Properties.

Blackdog Properties shareholder and director Melanie Coslett answered the door, but did not want to comment as she said "it would not be appropriate".

Otago University Students Association student support manager Sage Burke said students should not settle for low-quality housing.

The association was monitoring the landlords and property managers who were not keeping flats "up to scratch", but declined to comment on Student Accommodation Ltd and Blackdog Properties.

He urged any students having difficulties with their flats to contact the student association.