Monthly Landlord Newsletters
Propertyscouts

Monthly Landlord Newsletters

← Return to newsletters
November 2023

Propertyscouts Monthly Landlord Newsletter - November 2023

Propertyscouts Monthly Landlord Newsletter - November 2023

Welcome to the November edition of the Propertyscouts monthly landlord newsletter, where we update you on all things New Zealand property market, investor insights, seasonal reminders, and more.

2023 Propertyscouts Conference in Queenstown

This year's Propertyscouts conference was a grand success, set against the stunning backdrop of Queenstown. Our franchise owners spent two days engaged in an agenda filled with talks, workshops, and networking activities. While there might have been less wine tasting than expected, we're thrilled to share some highlights with you. Don't miss our highlights reel on the Propertyscouts New Zealand Facebook page.

Let's not forget our 2023 awards. The Supreme Franchise award, always hotly contested and highly anticipated, went to Propertyscouts Manukau this year. Congratulations to the Manukau team!

And now, let's recognise our other outstanding award winners (in no particular order, of course):

We’d also like to extend our gratitude to our 2023 sponsors (Bronze: Initio Insurance, Airify, Real Landlord Insurance, and Silver: TPS - Tenancy.co.nz). Their valuable support contributed to the success of this year's conference. As we closely partner with TPS (tenancy.co.nz) in property management, we appreciate their additional support as Silver sponsors for this year's event.

Is it harder for couples to find a rental than it is for singles?

In a recent Stuff article, the age-old debate about whether it's harder for couples to find rental accommodation compared to singles takes centre stage. The article features a couple who've been on a two-month-long quest to secure a rental in central Auckland. Unfortunately, they've faced multiple rejections, with landlords favouring single tenants over couples.

Despite being willing to pay extra for a rental that suits their needs, it seems that the perception of couples causing potential disturbances or breaking up and causing rent issues is deterring some landlords from renting to them. 

While it's illegal to discriminate against tenants based on their relationship status, the article delves into the underlying issues, from supply and demand imbalances to financial incentives for landlords. Propertyscouts was approached to offer insights into the legal aspects of rent discrimination, shedding light on why some landlords may prefer single tenants. Read the full article here.

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

Question: I’m seeking some guidance please on who is responsible to repair or replace various damage at a tenanted residential property. I engage a professional property manager because I am not local to my investment. However, irrespective of the damage I feel like the cost to repair anything and everything is put on me.

I have looked at Government websites but wonder if there is a difference in the real world. Eg, even if a tenant is responsible for fixing something, is it more common for property owners to do so to keep the peace?

In the past month the following has occurred at my property:

  • A damaged or broken window blind (only 18 months old)

  • A window pane that supposedly blew in during a storm (not the same window as the damaged blind)

  • A blocked shower drain

  • A blocked toilet.

There also appear to be a lot more beds in the house than necessary for the number of people that were understood to be living there. Potentially seven, up from three. Whilst I’m not opposed to more people in the property (within reason) this surely increases the wear and tear which should be reflected in an increased rent.

My property is negatively geared (though it would be back in the black if it weren’t for the current state of interest deductibility) so the regular repair costs are an unwelcome additional burden. Any guidance or insights are gratefully received.

Answer: Holding tenants accountable for damages can be complex as it often involves the need to establish how the damage occurred - a task that can be difficult.  It's important to remember that the burden of proof lies initially with the landlord, to prove the damage was not fair wear and tear.  Following this, the tenant must prove that the damage was either careless (and not intentional) or neither careless nor intentional. If the damage is neither careless nor intentional, the tenant is not liable. 

In each scenario you mentioned (window blind damage, window pane damage and blocked shower drain & toilet), for your tenant to be held fully liable your property manager would need to be able to prove intentional damage in each situation.  An example of this would be: an object was deliberately placed down the drain which caused the drain to block.

In regards to the increased number of occupants: under the Residential Tenancies Act 1986, tenants must not exceed the maximum number of residents specified in the tenancy agreement. It's crucial to discuss this concern with your property manager and ensure that the lease terms are adhered to.  They can issue the tenant with a 14-day notice to remedy the breach.  If the breach is not remedied they can commence Tenancy Tribunal proceedings.

To ensure a productive partnership with your property manager, it's essential to maintain open and clear communication with them, regularly sharing information, concerns, and expectations related to the services they’re providing.

A reminder on repairs and damage and who’s responsible for what…

If something is damaged or needs repairing at a rental property, tenants must notify the landlord. Tenants are not responsible for damage from burglaries, natural events, or fair wear and tear. If a tenant intentionally damages the property, they are responsible for repair costs.

For a more detailed breakdown of different types of damage, check out this handy rental property damage resource.

October 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 October 2023.

  • Landlords have, for the fourth month in a row, reported a growing trend of increased ease in finding good tenants.

  • Rents are still under upward pressure

  • Evidence is emerging of the election outcome affecting investors, with reduced concerns about the loss of deductibility of interest expenses, a surge in plans to sell properties for reinvestment, and diminishing anxieties regarding tenant legislation.

Additionally, there has been an increase this month in the percentage of current property investors expressing their intention to buy a property within the next 12 months, rising to 24% from the 21% reported in both September and August. This marks the highest figure recorded since precisely one year ago, just prior to the unexpected surge in inflation and additional hikes in interest rates, coupled with discussions of a potential economic downturn.

October Rental Market and Investment News Roundup

And of course, no newsletter is complete without a quick recap of recent news. Here are a couple of key updates in the New Zealand property investment landscape. 

National's election result sees property investor interest spike

  • The recent election result, which positioned the National Party to lead the next government, has led to a surge in interest from property investors, according to real estate agents. Buyers and investors have started showing more interest due to the change in government. Some overseas buyers, particularly from the USA and Australia, have shown increased interest in New Zealand properties, viewing the country as a safe haven during turbulent times. National's proposed policies, including allowing foreign buyers to purchase homes over $2 million with a 15% tax, have garnered both support and criticism, with concerns that they may lead to increased house prices. Additionally, National's plan to reinstate no-case evictions has sparked debate, with renters' advocates expressing concerns about its impact.

Conditions may be right for return of 'mum and dad' investors: Corelogic

  • Changing property market conditions could lead to a resurgence of "mum and dad" property investors, as data from Corelogic suggests a decrease in purchases by "mortgaged multiple property owners." Buyers investing in their first or second properties had seen the most significant decline and might be the first to re-enter the market as the environment changes, according to Kelvin Davidson, Chief Property Economist at Corelogic. Interest rates, National's policy changes like the shorter bright-line test and interest deductibility, and rising rents may alter the investment landscape. Property experts note growing interest and confidence among investors as they anticipate policy shifts.

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 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.

Quote to Ponder

"Success is not final, failure is not fatal: It is the courage to continue that counts." –Winston Churchill

Sign Up to Our Mailing List

Stay tuned for more updates and valuable insights in our future newsletters! If you want to receive these directly to your inbox - sign up to our mailing list here: https://mailchi.mp/a2ede027d1c3/sign-up     

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.

 

Property Owners

Tenants