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.

Welcome Property Management Experts, Propertyscouts Riverside

Introducing Propertyscouts Riverside, the latest franchise in Hamilton's growing property market led by Heidi and Tiaan. Heidi has a wealth of experience in residential and commercial property management, with Tiaan bringing expertise in commercial project and contracts management. They have both completed full Propertyscouts training with company director Ryan Weir, and are excited to be starting on their journey with the franchise. Heidi shares:

“I am excited to start this journey with Propertyscouts. We’ve had really good support so far, and I know going into it we are a family and a good team.”

Whether you're an experienced investor or a first-time landlord, Heidi and Tiaan promise exceptional service tailored to your needs. Contact Propertyscouts Riverside today to know you have the experts managing your next rental enquiry. 

Click HERE to read the full scoop on the new franchise, as well as some investor insights for their area. 

Proposed Legislative Changes In the Works

With the new National-led government coming into power late 2023, we have been keeping a close eye on proposed changes as they come into play. Here’s out update on what’s already changed and currently in the works:

• The introduction of pet bonds, not currently written into law, is being put forward as a bill to parliament this month. Part of the proposition is that tenants need to seek permission from landlords to keep pets, with landlords only able to refuse a request on reasonable grounds. Whilst great news for pet-owning tenants, this is a significant change for property owners to be aware of. 

• The government has agreed to restore interest deductibility on residential investment properties. Initially introduced at 80% deductibility, this is set to increase to 100% deductibility moving into April 2025. 

• From the 1st July 2024, New Zealand's Bright-Line periods are reducing from 10 years to 2. When you sell will affect what rules apply, so make sure to head to the IRD website for all up to date information. 

• A bill is being put forward to parliament this month to update tenancy laws affecting periodic tenancies. Mainly, this bill would see the re-introduction of 90-day ‘no-cause’ terminations and updates to both tenant and landlord notice periods. These changes are expected to come into effect from early 2025.  

Recent 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 currently, covering:

• A significant 27% majority of investors believe finding good tenants is straightforward, marking the second highest level ever recorded.

• Interest from investors in purchasing properties from within their own developments is decreasing

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

Propertyscouts is a designated Property Management Expert in the popular magazine - NZ Property Investor. Our Managing Director, Ryan Weir, recently entered a response to their recent 'Expert Advice Q&A'. View our May entry below: 

Question: I manage a house with a tenant who owes a lot of rent and recently got a tenancy tribunal order terminating their tenancy in two weeks. However, I'm considering giving them a probationary period to improve. Despite their poor communication and payment history, they're still in the property and making excuses for the arrears. Re-renting the property could be challenging, potentially leading to a long vacancy period. How long can I use the termination order if I decide to give them a chance to catch up on rent, but they don't improve? Will the termination order become obsolete if I extend their chance beyond the termination date?

Answer: According to the Residential Tenancies Act 1986, you can't file a possession order if it's been more than 90 days since the date of the tenancy tribunal order. Specifically, Section 64 (sections 2 and 4) of the RTA outlines this timeframe. It's crucial to consider this limitation if you're contemplating extending the probationary period for the tenant.

May 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. 

Are Interest Rates On The Move? Key Insights for Property Owners

• With interest rates showing their first signs of ease, there's cautious optimism among property owners for managing their mortgage repayments. However, economists caution against premature excitement, citing persistent domestic price pressures as a potential hurdle. A recent RNZ article reports that this is on account of the discrepancy between domestically-generated inflation, which remains above forecasts, and weak tradables inflation, indicating ongoing risks in the market. While interest rates are expected to hold steady for the coming months, the growing preference for 1-year fixed mortgage rates reflects a consensus that cuts may become more feasible as we approach 2025.

How Are National Property Prices Tracking? 

• As highlighted in a recent Opes Partners report, the property market in New Zealand is showing signs of recovery, with prices across the country generally on the rise. Since peak prices in November 2021, prices had been dropping. Moving into 2024 however, we have started seeing gradual increases again nationwide. Opes is anticipating these will continue to increase, but at a slow and steady rate. There is some variability based on regions, so make sure to read their full report to see how your area is tracking. 

Quote to Ponder

“With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future.” - Carlos Slim Helu

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.