Propertyscouts Property Management
Offer long term rental options in return for interest deductibility

Offer long term rental options in return for interest deductibility National Propertyscouts


That’s a suggestion made by one property consultant recently...

The idea itself is lacking in some of the finer detail on how it might work, and the reality is – it probably wouldn’t. It can be quite disheartening that our rental market is often compared to European markets where long term rentals (ten years or more) are often the norm. In those markets the ‘tenants’ often only rent a shell and they are responsible for fitting the property out with the likes of kitchens, bathroom fixtures etc. And when they leave, they are responsible for returning the property to exactly as it was at the beginning of their tenancy. I think quite a few investors with a long term ‘hold’ strategy might be in favour of such a rental system, but the reality is there would need to be a massive attitude shift in how our rental system works. And there would be a large portion of tenants who either wouldn’t have the means to fit out a property or wouldn’t want to or wouldn’t want a tenancy term extending beyond what seems to be the normal here in NZ of about one year.

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