Monthly Landlord Newsletters

Unlock New Property Investment Opportunities with Propertyscouts - For Free

Looking to expand your property investment portfolio but short on time or expertise? At Propertyscouts, we're exploring a complimentary service designed to seamlessly grow the property portfolios of our clients.

If this piques your interest and you're contemplating a property purchase—whether now or down the line—click here to express your interest. The registration process takes just 15 seconds.

Ever Dreamed of Owning Your Own Business in the Beautiful Bay of Islands?

You know, sometimes life throws us a curveball, and we stumble upon an opportunity so good that it's hard to pass up - either for ourselves or for someone we know. Picture this: the sun rising over the beautiful Bay of Islands, a steaming cup of coffee in hand, and owning a turnkey property management business that's already set up for success. Tempting, right? Even if this isn't up your alley, perhaps you know someone who's been itching for a new adventure.

Considering only about 40% of NZ rentals are professionally managed right now, the potential for business growth is huge. Whether it's a fit for you or someone you know, this opportunity's a game-changer. 

Keen to hear more or know someone perfect for this? Reach out to Ryan Weir at ryan@propertyscouts.co.nz for more information. 

Exciting Partnership Announcement: Propertyscouts & Initio Insurance 

At Propertyscouts, we're always seeking ways to enhance our services for our valued clients, and we're delighted to announce our new partnership with Initio Insurance.

In these times of rising insurance costs and concerns about the cost of living, we've teamed up with Initio Insurance to provide you with added value. As a Propertyscouts client, you'll have access to a discount on insurance premiums that are already competitively priced. This is our way of saying thank you for choosing Propertyscouts as your trusted partner.

What sets Initio Insurance apart is their dedication to customer satisfaction. They're committed to making your insurance experience as smooth as possible. They're prepared to work directly with property managers during claim processes, ensuring a hassle-free journey. Plus, their user-friendly instant quote tool and insurance comparison feature make it a breeze for you to explore insurance options quickly. 

Keen to learn more? Get in touch with your Propertyscouts property manager for details. 

‘Delinquent Landlords’ Put on Notice in Bill Regulating Property Managers

In response to growing calls for property management sector regulation, the Residential Property Managers Bill has been introduced in Parliament. Propertyscouts Director, Ryan Weir, was consulted by Miriam Bell for insight in a recent article published in The Post. While primarily focused on property managers, the bill includes a provision targeting landlords.

Under this provision, if a landlord commits two significant breaches of tenancy law within five years, the Tenancy Tribunal can require the landlord to engage a licensed property manager for their tenancies. These breaches encompass serious violations like non-compliance with healthy home standards, improper termination notices, or ending tenancies without valid grounds.

While hailed as a positive step, critics note that the bill's reach is limited as it excludes private landlords, Kāinga Ora, and registered community housing providers. This limitation underscores the need for a more inclusive approach to regulation.

Despite differing opinions on the bill's scope, there's consensus that regulation will elevate industry standards. By enforcing training, ongoing professional development, and licensing for property managers, the bill aims to bolster tenant trust and guarantee reliable property management. Fines for non-compliance are also anticipated to weed out unprofessional practices, enhancing the sector's overall reputation.

Government Exempts Flood and Cyclone-Damaged Properties from "Bright-Line" Test: Providing Tax Relief Amidst Natural Disasters

The government has decided to exempt flood and cyclone-damaged properties from the "bright-line" test for tax implications during buyouts by local authorities. This measure, announced by Revenue Minister Barbara Edmonds, aims to provide certainty and support to property owners affected by severe weather events in Auckland, Hawke’s Bay, Tairawhiti, and other regions.

The decision is rooted in the understanding that voluntary buyouts may inadvertently trigger tax complications, especially for properties owned for less than a decade. By exempting these sales from the bright-line test, the government acknowledges the circumstances that necessitate such transactions.

This approach draws from similar changes made post the Canterbury earthquakes, demonstrating a precedent for addressing property-related challenges arising from natural disasters. Collaborative efforts between Inland Revenue and the Cyclone Recovery Unit have been instrumental in shaping these modifications.

While the exact number of property owners impacted remains uncertain, estimates point to a few dozen cases. This development aligns with earlier measures designed to support flood-affected businesses, including tax relief for late payments and provisions for accurate provisional tax forecasts.

August 2023 Property Investor Insights by Tony Alexander

Stay informed with the latest property insights provided by Tony Alexander. Learn about the developments and trends shaping the New Zealand property market in August 2023.

• Investors looking at buying a new dwelling are increasingly favouring apartments, though standalone houses and townhouses remain highly preferred.
• A record net 22% of investors are finding it easy to find good tenants, likely due to increased migration (whereas in December a net 8% said finding good tenants was hard).
• 21% of investors are considering buying another property within the year, showing a slight increase in purchasing interest from last month.
• Investors' primary concerns regarding future investment returns include the loss of interest expense deductibility, tenant-favouring regulations, interest rates, maintenance costs, and rising insurance costs.

The Latest Ask An Expert from Within the NZ Property Investor Magazine | September 2023

Question: I've received a complaint from my tenant about dampness, including instances of condensation on windows and mould appearing on their clothing. The property underwent a Healthy Homes compliance inspection last year, receiving approval. My previous tenants did not raise any concerns about dampness. Given these mixed signals, I'm uncertain about the appropriate course of action. Could you provide guidance on how to address this situation effectively?

Answer: Although your property received Healthy Homes compliance sign-off last year, it's important to bear in mind that maintaining compliance requires ongoing attention. Sudden issues such as a blocked drain will result in non-compliance with Healthy Homes standards, potentially making your property more susceptible to dampness. 

To start, speak with your tenant to ask whether they've observed any issues, particularly during periods of rainfall. Then, thoroughly inspect your property for any potential sources of moisture ingress, like blocked drains, downpipes, or gutters.  Rectify any issues promptly to prevent further dampness issues for your tenant and maintain Healthy Homes compliance.

Following on from that, spend some time with your tenant and educate them about managing dampness effectively. Encourage them to ventilate the property by opening windows and using extractor fans. Condensation on windows, or "crying windows," occurs when warm, moist air meets cold glass surfaces. Suggest to your tenant that they use a Kärcher Window Vac, to mop up condensation when it appears. Consider providing the Window Vac as a chattel so future tenants can use it too. 

In the future, when inducting new tenants, it’s good practice to focus on empowering tenants with knowledge about maintaining a warm and dry home, as well as recognising and promptly communicating any indications of moisture ingress. We can't take for granted that all tenants know these things by default.

Overcoming Common Challenges: Practical Tips for Self-Managing Landlords

As a self-managing landlord, taking control of your property investments is no small feat. While rewarding, the journey isn't without its challenges. From time constraints to legal compliance, there's a lot to handle. But don't worry! Here are some practical tips to empower you to conquer these common hurdles:

• Time Management: Efficiently balance landlord duties by setting dedicated hours, embracing digital tools, and prioritising tasks.
• Tenant Screening: Ensure a smooth rental experience by creating a thorough screening process that includes background checks and adheres to privacy regulations.
• Maintenance and Repairs: Prioritise property maintenance for tenant satisfaction and long-term value. Conduct routine inspections, build a reliable contractor network, and educate tenants on basic upkeep.
• Legal Compliance: Stay updated on laws, maintain records, and consider joining the NZ Property Investors’ Federation for resources.
• Rent Collection: Ensure consistent cash flow with clear payment expectations, encouraging automated payments, and managing late payments professionally.
• Handling Disputes: Resolve conflicts amicably by responding promptly, staying calm, and familiarising yourself with tenant and landlord rights.
• Property Marketing: Attract quality tenants through professional listings, online platforms, and highlighting unique property features.
• Vacancies and Turnover: Minimise downtime by planning ahead for lease endings and focusing on tenant retention.

Highlights From the Propertyscouts Rental Market and Investment News Roundup (up to and including, 11th August)

And of course, no newsletter is complete without a quick recap of recent news. Here are some key updates in the New Zealand property investment landscape. If you want to dive deeper, head over to our blog and check out the full roundup: Scouting the Market: August 11th, 2023. 

Swarbrick's New Bill to 'Weed Out' Healthy Homes 'Cowboys' 

• Green Party MP Chlöe Swarbrick has introduced a member's bill aimed at ensuring adherence to Healthy Homes standards, addressing concerns that the current standards are predominantly voluntary for landlords. The proposed Residential Tenancies (Healthy Homes Certification Scheme) Amendment Bill seeks mandatory certification for landlords, requiring proof at the start of each tenancy and renewal every four years. While advocates highlight the bill's potential to ensure healthy living conditions, critics argue about potential bureaucracy and increased costs.

National Party's Proposal Regarding Kiwisaver for Bond Payments

• The National Party's proposal to allow people under 30 to use KiwiSaver funds for rental bond payments has received criticism from financial experts. While the policy may make it easier for young renters to secure accommodation, it is seen as a "stop-gap" measure that dilutes the long-term savings objective of KiwiSaver.

Property Investment Updates:

• The average gross national yield in June was 3.1%, up from 2.6% in the previous year, but still relatively low compared to other investment options like term deposits, which yield around 5.5%. 
• Tenant advocates and property managers highlight five concerns affecting tenants amid rising rents and political promises. These concerns encompass rental affordability, security of tenure, adherence to healthy homes standards, compliance challenges, and legal gaps for non-classified renters. 

Are you thinking of selling your investment property – or buying another? 

If so, please get in touch with your local Propertyscouts office as it’s possible we will know of someone looking for a new investment property or know of one for sale. And remember, with Propertyscouts offices throughout NZ you no longer have to buy local. Chances are wherever you buy we’ll have an office and ‘star performing’ property manager to look after your investment as if it were their own. Here are some details of a great Christchurch investment opportunity:

Phillipstown, Christchurch

Two standalone, side-by-side properties with two bedrooms and one bathroom each. To learn more, contact Propertyscouts Christchurch at christchurch@propertyscouts.co.nz | 022 3252 130. 

Quote to Ponder

"Success is walking from failure to failure with no loss of enthusiasm." – Winston Churchill

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Disclaimer

Given the opinions expressed in parts of the email, it’s important that we make it clear that the contents are opinions and observations and made in good faith.  

Propertyscouts NZ (2020) Limited, trading as Propertyscouts, and its associated parties (including directors, agents, employees, officers or otherwise) have attempted to provide   this information to the best of their ability but do not make any representations or warranties of any nature (intended or implied) as to the accuracy of the information on this communication. All recipients of this communication should conduct and rely on their own enquiries in relation to the information on this communication.

The information available on the properties listed for sale, rent or otherwise, has been obtained from the vendor or landlord of the property and the appropriate professional service providers. We do not and cannot verify or guarantee the accuracy of the information obtained in relation to the properties.

The information and/or materials available in this communication are intended to be general information only and may be changed at any time, without notice to you. The information and/or materials in this communication should not be relied on under any circumstances as a substitute for legal, financial, real estate, or other professional and/or expert advice. To the maximum extent permitted by law, Propertyscouts and its associated parties disclaim all liability, responsibility, and negligence for any direct or indirect loss or damage suffered by any person arising from the information and/or materials presented in this communication or any information and/or materials that arise from it.