Monthly Landlord Newsletters

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

 

The Latest Ask An Expert from Within the NZ Property Investor Magazine | April 2024

Here’s our latest “Ask An Expert” column from the popular magazine - NZ Property Investor:

Question: I've listed my investment property for sale while it's still occupied by tenants. However, the tenants are resisting allowing open homes and viewings. My real estate agent claims that the law requires tenants to permit two open homes per week if the property is on the market. I couldn't find any such provision in the Residential Tenancies Act (R.T.A.). Can you clarify this for me?

Answer: The information you've been given regarding the requirement for two open homes per week while the property is on the market is incorrect. The Residential Tenancies Act 1986 (R.T.A.) does not stipulate a specific number of viewings per week. However, it does address the issue of showing the premises to prospective purchasers.

According to Section 48(3) of the R.T.A., tenants cannot unreasonably refuse access for viewings, but they can impose reasonable conditions on entry. It's essential to strike a balance between your interest in selling the property and the tenant's right to privacy and quiet enjoyment.

To navigate this situation effectively, I recommend the following steps:

1. Collaborate with your sales agent to create a prospective showing schedule.

2. Present the schedule to the tenant for review and feedback, ensuring that all communication regarding access goes through you, the landlord.

3. Aim for mutual agreement on the showing schedule, accommodating both parties' needs.

4. If agreement cannot be reached, the landlord may file an application with the Tenancy Tribunal to establish a binding schedule for viewings.

Remember, the landlord holds the responsibility under the R.T.A. to safeguard the tenant's peace, privacy, and comfort. Failure to uphold these rights may result in legal consequences.  Thus, it's crucial to handle viewings with sensitivity.

 

Mastering Property Maintenance: 5 Proven Strategies for Landlords in New Zealand

Our recent article titled "Mastering Property Maintenance: 5 Proven Strategies for Landlords in New Zealand" offers insights and tips for landlords in New Zealand to efficiently manage property maintenance. Propertyscouts, drawing from years of experience, provides five key strategies:

1. Invest in Quality Appliances: Prioritise durable appliances and systems over cheaper alternatives to minimize breakdowns and attract quality tenants.

2. Consider Regular Maintenance Checks: Adopt a proactive approach to maintenance with regular inspections to identify and address issues before they escalate.

3. Modernise Key Systems: Upgrade outdated plumbing, electrical, and heating systems to reduce the risk of failures and attract desirable tenants.

4. Stay On Top of Property Maintenance: Address maintenance concerns promptly to prevent minor issues from becoming costly disasters, enhancing property integrity and tenant satisfaction.

5. Cultivate Positive Tenant Relationships: Foster positive relationships with tenants through thorough screening, regular communication, and prompt issue resolution to ensure a harmonious rental experience.

By implementing these strategies, landlords can reduce costs, increase property value, and improve tenant satisfaction. Propertyscouts offers expertise in property management to support landlords in navigating the challenges of rental property ownership effectively.

Read the full article here. 

 

April 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. 

Bright-Line Test Reduction

• Good news for property investors! The bright-line test is being shortened to two years for all properties from 1st July 2024. This might lure back investors worried about capital gains tax. So take note - 5-10 year bright-line periods apply up until 31st March, but if you sell a property from the 1st April then the period applicable will switch to two years.

Recent Announcements on Interest Deductibility

• Recent announcements on interest deductibility reveal significant changes for property investors. Effective from 1st April, 2024, investors will be able to reclaim 80% of their property interest expenses, with full 100% deductibility expected by April 2025. These adjustments aim to incentivise landlords and lead to increased property retention among owners. This surge in supply could help stabilise rent prices, offering long-term advantages for both property owners and tenants alike.

Property Investment Updates:

• Sales activity is still on the rise! According to a recent report by REINZ, the total number of properties is continuing to increase (this is in comparing data from January 2024 to February 2024). This suggests strong demand from buyers nationally. Exceptions to this include the West Coast and Taranaki, which saw either a decrease or marginal growth. 

 

Quote to Ponder

"The best way to predict the future is to create it" – Peter Drucker

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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.