Monthly Landlord Newsletters

RPMA Award Winners

We're excited to share some fantastic news from the recent 2023 Residential Property Managers Association of New Zealand (RPMA) Conference – a few of our franchise owners received awards. 

First and foremost, a big round of applause for Ani Armstrong (Propertyscouts Manukau), who was named the RPMA NZ Property Manager of the Year! Ani's passion for her role shines through, and her commitment to both landlords and tenants is remarkable. Her leadership and team spirit set a high standard in our industry. 

But that's not all for Ani – she also won the Auckland South Regional Property Manager of the Year award, further confirming her excellence in the field.

For Propertyscouts New Plymouth, we're celebrating Courtney Belgrave, who received the Taranaki Regional Property Manager of the Year award. Courtney's dedication and commitment make us proud to have her as part of the Propertyscouts family.

Lastly, let's not forget Tony Mitchell of Propertyscouts City of Sails, who received the Auckland East Rising Star Award. This recognition highlights his achievements in property management to date with a promising outlook for the future.

Congratulations to Ani, Courtney, and Tony for their well-deserved awards. We're grateful to have these outstanding individuals as part of our Propertyscouts family and look forward to their continued success. 

Upcoming Propertyscouts Conference

Speaking of conferences… The countdown is officially on! We're just a fortnight away from bringing together all our franchises for our much-anticipated annual two-day conference. This year, we're packing our bags and setting our sights on Queenstown. We've got some great sessions and events lined up, and we can't wait to catch up with everyone in person. Make sure you're following Propertyscouts New Zealand on all our social channels for behind-the-scenes sneak peeks of our conference adventures. 

The Election Approaches

With the General Election fast approaching, New Zealand's housing crisis remains a critical issue, and it's a topic that all major political parties acknowledge needs attention. However, they have different approaches to addressing the housing challenges and renting policies. Here's an overview of the key housing and renting policies proposed by various political parties. For more information on the various policies check out this handy comparison tool.

National Party

• Key Housing & Renting Policies
  • Revert the bright-line test for tax on property sales to two years.
  • Allow interest deductibility on loans for rental properties.
  • Pay councils for consenting additional houses.
  • Allow landlords to evict tenants without cause.

Labour Party

• Key Housing & Renting Policies
  • Oppose a wealth or capital gains tax.
  • Introduce a papakainga planning standard.
  • Continue to fund critical infrastructure needed for housing development.

ACT Party

• Key Housing & Renting Policies
  • Abolish the bright-line test for tax on property sales.
  • Replace the Building Act with compulsory building insurance.
  • Abolish the Progressive Home Ownership Scheme and the First Home Grant.
  • Allow landlords to deduct interest costs from income tax.

Green Party

• Key Housing & Renting Policies
  • Limit rent increases to three percent or less per year.
  • Introduce a landlord register.
  • Build 35,000 new public houses over five years.
  • Require landlords to disclose previous rent amounts paid by previous tenants to new tenants.
  • Introduce a Rental Warrant of Fitness for all rentals.
  • Require all bedrooms in rental homes to have adequate heating.
  • Increase the production of high-quality off-site manufactured homes.
  • Make clean energy improvements tax deductible for rental properties.
  • Reform student accommodation standards.
  • Increase funding for Māori to build on their own land.

Te Pāti Māori

• Key Housing & Renting Policies
  • Tax undeveloped land.
  • Introduce a tax on vacant houses.

The Opportunities Party (TOP)

• Key Housing & Renting Policies
  • Introduce a tax on urban residential land.
  • Require a 100 percent deposit for properties purchased for investment purposes.
  • Create a $3 billion fund for social housing.

New Conservatives

• Key Housing & Renting Policies
  • Introduce tax on foreign house buyers and local buyers with three or more properties.
  • Restrict land banking.
  • Relax building material regulations.

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September 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 September 2023.

• Landlords are increasingly reporting an improved ease in securing good tenants.
• A lower number of investors are considering selling due to the loss of interest expense deductibility.
• The preference for purchasing new properties is on the decline among prospective buyers.

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

Question: I have a five-bedroom house that is let on a room-by-room basis to post-graduate international students. One of the rooms is occupied by a married couple and I have been advised that the wife is pregnant and expecting a baby in a few months' time. The tenant has advised that they would like to stay in the house once the baby is born. Obviously having a baby in the house will seriously affect the other tenants in terms of noise and possibly sleep disruption. What is the legal position in this situation?

Answer: There's an important recent case you should be aware of – "Rawstorne v Westside Management Limited T/A Quinovic Property Management [2021] NZDC 14114." In this case, the District Court ruled that a landlord's decision to ask a pregnant tenant to vacate the property due to concerns about the baby exceeding the maximum number of occupants constituted discrimination, and the tenant was awarded damages. 

To address this situation practically, start by communicating with your tenants. Explain how having an infant in the house might affect other tenants' quiet enjoyment of the premises, emphasising the provisions of the RTA: 'The tenant must not cause or permit any interference with the reasonable peace, comfort, or privacy of any other tenant on the premises.' Ask the couple how they plan on meeting these requirements once the baby has arrived. Without being insistent, offer to help the tenants find new accommodation that is more suitable for a young family. If they've been good tenants, provide a landlord reference to assist them in securing their next property." 

Enhancing Rental Property Marketing Through Captivating Visuals

In today's competitive rental market, captivating visuals are crucial for maximising occupancy rates and attracting great tenants. At Propertyscouts, we recognise the power of professional visual content in rental property marketing. Check out our recent blog article for a few reasons to invest in professional photography for your rental property. Here are a couple of key points that may be of interest: 

• First Impressions: Potential tenants form quick opinions when viewing listings online. Professional photography and videography play a vital role in making a memorable first impression.
• Emotional Connection: Inviting images of cosy living spaces and well-decorated bedrooms create a sense of warmth and comfort. Great visuals evoke emotions and forge a connection between tenants and your property.
• Trust and Differentiation: Investing in professional visuals demonstrates professionalism and attention to detail. It sets your property apart from others and showcases your commitment to quality. 

September Rental Market and Investment News Roundup

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. 

Three things to know about a National government and property investors

• In recent research news from CoreLogic, potential changes in housing and tax policies under a National government could impact property markets. A shorter Brightline test from July 2024 may encourage more property sales by reducing capital gains tax risks. Foreign buyers might be allowed to purchase properties over $2 million with a 15% tax, possibly affecting specific areas. However, the phased reinstatement of full mortgage interest deductibility may not significantly change the investment landscape due to challenges related to rental yields and mortgage rates. These policy changes could moderately influence the property market, but various factors will continue to shape its dynamics.

Landlords versus tenants

• According to RNZ, over the past six years, New Zealand's rental market has seen significant shifts favoring tenants, including the banning of rental loss deductions, extending capital gains tax through the bright-line test, prohibiting rental auctions, and eliminating no-cause terminations. The introduction of healthy home standards and the removal of mortgage interest deductions for landlords have increased costs for property owners, potentially impacting rental prices. Some parties, like National and ACT, aim to reverse these changes, advocating for no-cause evictions and restoring interest deductibility to encourage more investment in the rental market. While these policies have leaned toward tenant benefits, achieving a balanced playing field may require further improvements in the tenancy tribunal system, addressing issues related to accessibility, awards, and compensation for both tenants and landlords.

Mega Landlords: investor stops buying after tax change, renovating instead

• Phillip Westwood, an experienced property investor, has halted new rental property acquisitions due to the removal of interest deductibility tax benefits. Instead, he's focusing on paying down existing property debts and investing in maintenance. He highlights that cashflow is now paramount for investors, and some landlords may sell properties if Labour remains in power, which has already started among small investors. Westwood suggests that if National wins, they may reinstate the mortgage interest deductibility tax advantage, but he's uncertain about the party's chances. He also mentions that Labour's tenant-focused policies have prompted some landlords to turn their properties into Airbnbs, a trend he may continue if Labour wins.

Property Investment Updates:

• Economists interpret recent REINZ housing market data as indicating growing momentum in the market, with predictions of price rises in the coming year. Westpac forecasts an 8% price increase, Kiwibank predicts 6%, ANZ anticipates 4% for the second half of this year, and ASB expects prices to continue rising, reaching their previous peak by early-to-mid-2025. The surge in migration, increasing demand, and a cooling residential construction boom contribute to the housing market's strength. Falling mortgage rates and an ongoing supply shortage are also driving factors, supporting confidence and activity in the market. The housing market's future performance may be influenced by the upcoming election and potential policy changes.
• Rising mortgage interest rates have made buying a home more expensive than renting, says BNZ chief economist Mike Jones. He compared the costs of buying a home at the NZ median house price with renting a property. Currently, the average annual expense associated with buying a median New Zealand home exceeds that of renting by just over $38,000 per year. However, the gap may be offset by a positive house price revaluation if prices rise. Jones noted that despite the financial analysis, non-financial considerations like security of tenure and personal preferences also play a significant role in the buy/rent decision.

Quote to Ponder

"Life is like riding a bicycle. To keep your balance, you must keep moving." – Albert Einstein

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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.