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.

Winter is Coming: Get Ahead of the Rainy Day Blues

Brrr! Winter is here, and like us, you’re probably already feeling its effects. But don't let the cold weather get you down! As a landlord, there are some extra steps you can take to make sure your property—and your tenants—are ready to face the chill. Keen for a disruption free winter? Chat to your property manager about the following checklist: 

• Service for heat pumps: Making sure these are all running smoothly & have had a good clean ahead of winter helps them to run as smoothly as possible ahead of their biggest season. 

• Seal the deal: Make sure you’ve sealed up the gaps around doors, windows and pipes. This keeps the house warm & dry, keeping your property warm, dry and mold-free. 

• Check your gutters: With the extra rainfall on the way, you’ll want to make sure your gutters and downspouts are all clear. Preventing water damage caused by blockages and overflow. 

Getting on top of this upkeep now can help ensure less disruptions for you over the chilly winter season. 

 

Government Scraps Plans to Regulate Property Managers : What’s Next?

You heard that right – the government just did a U-turn on its plans to regulate property managers. It’s a big deal and something we’ve got to talk about.

If you’re a bit behind on this one, to cut a long story short the government decided to chuck out the rulebook they were drafting up to keep property managers in check. That’s leaving many scratching their heads about where things are headed in our industry.

Our director Ryan Weir recently had a chat with The Post about this hot topic. He shares some thoughts that represent the Propertyscouts take on the matter. Diving into: 

What we understand:

• The draft bill had some holes in it, like the exclusion of a register for DIY landlords.

• Turns out, the numbers didn’t add up when they crunched them with the cost to benefit analysis revealing a poor ratio. This was the big challenge for the Government in pressing play on proposed changes. 

What doesn’t stack up: 

• With no regulations in place, it’s like hitting pause on progress in our industry.

• Without rules for property managers, too many landlords are having their rights neglected. Resulting in costly mis-management of their valuable property investments. 

In short, while we would’ve liked to see a more comprehensive bill put together, we think the right response would have been to improve and push it rather than ditch it. 

So, What’s Next?

Whilst disappointing, it’s not all doom and gloom. There’s a silver lining for landlords out there who want to know their properties are being properly managed. At Propertyscouts, our commitment is guaranteed, and you can rest easy knowing your property is being managed by someone who’s an expert at what they do, and fully invested in your success. Furthermore, groups like the Residential Property Managers Association (RPMA) hold their members to high standards, like what the government was aiming for. Many of our property managers are part of this, and all of us at Propertyscouts are bound by a code of practice and a code of ethics. 

 

Proposed Changes to the RTA Good News for Landlords

In a move set to invigorate the rental market, the new RTA Amendment Bill 2024 promises significant relief for property investors. This Bill aims to roll back several restrictive measures introduced by the previous government. Here’s a quick overview of the key changes and what they mean for you:

Reintroduction of 90-Day 'No Cause' Terminations: This allows landlords to end periodic tenancies without needing a specific reason, offering greater flexibility and control over their properties.

Fixed-Term Tenancies: Landlords can now end a fixed-term tenancy without providing a reason, making it easier to manage rental agreements.

42 Day Notices: These notices are back, allowing owners or their family members to reclaim their property.

Pet Bonds: Landlords can require a pet bond of up to two weeks’ rent. This measure helps mitigate potential pet-related damages, giving landlords more confidence to allow pets in their properties. Do note, however, that you will now need grounds to refuse tenants with pets. View more information on the grounds for refusal on The Tenancy Services website.

These proposed changes are designed to remove barriers for landlords. By boosting investor confidence, we expect to see an increase in rental property supply, which will also benefit tenants with more options in the market. This Bill represents a positive shift, encouraging landlords to re-enter the market and providing much-needed relief to both investors and renters alike.

 

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:

• Buyer interest amongst investors low despite a change to interest rates and government legislation to encourage investment

• Falling house prices a growing concern for investors

• Interest in new property development amongst investors is declining, expected to have a direct impact on the construction industry

 

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

Propertyscouts is the 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 recently rented out my property to a new tenant, and during the initial viewings, the property showcased some chattels, including a large (and heavy) wall mounted mirror that complements the space. However, a month into the tenancy, the tenant has requested to remove the mirror to hang their own art. I'm unsure of my obligations regarding this request. Do I have to bear the cost and responsibility of removing, storing, and re-installing the mirror? I've never encountered such a request before, and I believe the wall-mounted mirror adds value to the property.

Answer: You're facing a common dilemma many landlords encounter. Regarding the tenant's request, you have two viable options. Option one involves agreeing to remove the mirror at your expense, enhancing your relationship with the tenant but you are bearing the cost and effort. However, I recommend option two, which is treating the situation as a "Tenant's Request For A Minor Change".  This is outlined in the Residential Tenancies Act (section 42A).

Formalising the request through this process shifts responsibility and costs to the tenant. Have the tenant submit a written request, to which you respond outlining your reasonable conditions, including the requirement to return the mirror to its original position by the end of the tenancy.

Ultimately, according to the RTA, the mirror will need to be removed, but following this process ensures clarity and fairness for both parties.

 

June 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. 

Resale values taking a slight dip, conditions ripe for first home buyers

• The resale performance of residential real estate has seen a slight dip in the first quarter of 2024. This is likely the result of mortgage pressures and tighter margins for investors.  Chief Property Economist Kelvin Davidson noted that these elements are swinging the market back in favor of buyers. 

• In the current economic climate, conditions are ripe for first home buyers to make their move. With a slowdown in building development and many older property investors selling up in the face of rates increases, there's a noticeable shift towards a buyer's market. 

Could build to rent provide relief for investors and tenants alike? 

• Whilst resale value is taking a dip and the first-home buyer is enjoying the swim, rental demand and subsequently rental prices remain high. Rent-to-build developments, already popular abroad, are starting to gain more traction locally. These multi-apartment builds could promise an economic option for property investors, with many tenants preferring comfort and modernity over spaciousness. 

 

Quick Start Franchise Opportunities

Ever wondered what it would be like to run your own property management business? With Propertyscouts' quick start franchise opportunities, you can dive into New Zealand's booming property management industry with immediate revenue and full support. No previous experience is necessary—just your enthusiasm and eagerness to learn!

Get in touch with Propertyscouts director Ryan Weir by emailing ryan@propertyscouts.co.nz to learn more. 

 

Quote to Ponder

"Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence." - Helen Keller

 

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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.