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.

2024 Propertyscouts Network Conference in Nelson

This year's Propertyscouts franchisee conference in Nelson was a resounding success, basking in sunny days that truly lived up to the city’s reputation. Our franchise owners enjoyed a power-packed couple of days filled with insightful talks, engaging workshops, and the opportunity to connect with our diverse franchise network, sharing ideas and learnings. We’ve put together a highlights reel capturing all the memorable moments—be sure to check it out on the Propertyscouts New Zealand Facebook page!

A huge congratulations to our 2024 award winners…

Propertyscouts New Plymouth - Outstanding Growth and Supreme Franchise Awards 2024

Propertyscouts Dunedin - Best Team Work Award 2024

Propertyscouts Invercargill - Ratings Superstar Award 2024 (NEW award)

Sharon Mitchell (Propertyscouts Invercargill) - Administrator of the Year 2024

Chantel De Beer (Propertyscouts Whangarei) - Property Manager of the Year 2024

Ronan Quirke - Rising Star Award 2024

We’d also like to extend our gratitude to our generous sponsors. A big thank you to our Bronze package sponsors: eKnows (eknows.co.nz) and Property Compliance NZ (PCNZ - propertycompliance.co.nz). Special thanks to our Silver sponsors: TPS (Tenancy.co.nz) and Safe & Healthy Homes Solutions (shhsolutions.co.nz). Your support was invaluable in making this year’s conference a success!

 

What’s Next for Interest Rates? A Look Ahead

There’s a buzz in the air about a potential 75 basis point cut in interest rates next month, though experts are anticipating a 50-point drop is more realistic. While significant cuts have happened before, we’re not quite in the same boat as we were during the global financial crisis or the pandemic. The Reserve Bank is aware that rates do need to come down to around 4% to help get the economy going. Whether we will see a sudden drop in rates is uncertain - but at Propertyscouts, we’re optimistic about the possibility of a decent tapering of rates in the coming months. 

 

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

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 a recent entry below: 

Question: I rented my property to a beneficiary a year ago, and they arranged to have their WINZ benefit redirected to me for rent payments. This seemed like a guaranteed way to ensure the rent was always paid on time, so I included a clause in the tenancy agreement stating, "WINZ PAYMENTS: All payments made by WINZ are to be paid directly into the Landlord’s Account." However, the WINZ payments have now stopped, the tenant hasn’t been in contact, and rent is two weeks overdue. Can the tenant do this? Can I contact WINZ?

Answer: Many landlords, like yourself, are initially reassured by the idea of WINZ benefit redirections, assuming it guarantees regular rent payments. While it often does, it’s important to understand that tenants can unilaterally stop these payments at any time, which unfortunately undermines the perceived security.

The clause in your tenancy agreement is unenforceable. Landlords cannot dictate the source of rent payments, whether from WINZ or any other source. The RTA requires only that rent is paid in full and on time; it doesn’t matter where the money comes from.

Given the current situation, your immediate step should be to try and contact the tenant. If unsuccessful, issue a 14-day notice for rent arrears as soon as possible. If the rent arrears reach 21 days, you can apply for termination of the tenancy under section 55(1)(a) of the RTA.

Unfortunately, WINZ won’t discuss the tenant’s situation with you as you aren’t authorised to access their personal information. In future, consider the risks associated with WINZ redirections and perhaps think about requiring a guarantor to add an extra layer of security.

 

November 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. The following includes some of our key takeaways from our keynote speaker, Brad Olsens’, talk ‘Greener Shoots in 2025’ at our recent Propertyscouts Conference.  

Cautious Optimism Amid Market Shifts

While the economic outlook is showing signs of improvement, landlords should tread carefully. High property prices combined with an abundance of housing stock may lead to a temporary stabilisation or even a decline in property values. It's essential for investors to brace for potential fluctuations and consider the impact of oversupply on their investment strategies.

Navigating Supply and Demand Imbalances

As we anticipate population growth and increased housing construction, the demand may not keep pace, leading to a saturated market. Investors should take this opportunity to reassess their portfolios, considering diversification or repositioning properties to align with emerging market needs. Understanding local demand dynamics will be critical for maintaining property values and ensuring rental stability. 

Strategic Planning for Long-Term Success

With heightened competition in the property management sector, long-term strategic planning becomes paramount. Building strong relationships with tenants can result in lower turnover rates, which will be key in a competitive market.

Capitalising on Economic Recovery

Business confidence is on the rise, indicating a gradually improving economic environment. Property investors should closely monitor interest rate trends and take advantage of favourable fixed mortgage rates to reassess and optimise their financial strategies. This presents unique opportunities for growth, especially in acquiring undervalued properties as the market stabilises.

By incorporating these insights, landlords and property investors can strategically navigate the current challenges while remaining optimistic about future opportunities in the New Zealand property market.

 

Investor HotSpot: New Plymouth

This month, we're casting a spotlight on New Plymouth, Taranaki’s coastal gem with serious long-term investment potential. While recent price trends reflect a dip, New Plymouth has a track record of impressive growth, showing a median house price increase from $315,000 to $619,750 over the last decade—an average annual rise of 7%. With median rents now around $560, rental income also presents a solid opportunity.

Population projections are another compelling factor. New Plymouth is expected to see an 11.5% population boost over the next 25 years, promising a steady demand for rental properties.

With the current buyer’s market offering slightly reduced prices, now could be an ideal moment for investors interested in capitalising on New Plymouth's enduring appeal and growth prospects. Reach out to our team for a personalised look at the New Plymouth investment landscape!

 

Investment Opportunity: Multi-Unit Block in Moturoa

6 units plus a separate two-bedroom dwelling, just steps from New Plymouth’s Coastal Walkway. Generating $3,550 per week ($184,600 annually) with secure tenancies.

Moturoa’s sought-after location close to schools, shopping, and public transport enhances tenant appeal. 

For details, contact the team at Propertyscouts New Plymouth.

 

Quick Start Franchise Opportunities

We still have a variety of Quick Starts available - key areas to note are some amazing opportunities available in Auckland, Tauranga, Taranaki & Palmerston North. 

Enquiries are coming in fast, so make sure to chat to Ryan Weir by emailing ryan@propertyscouts.co.nz if you're interested. 

 

Quote to Ponder

"An investment in knowledge pays the best interest." - Benjamin Franklin

 

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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.