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Treat rental properties as a business
The need for landlords to treat their rental properties as a business is highlighted by three new Tenancy Tribunal rulings. Tenancy Compliance and Investigations Team (TCIT) acting national manager Peter Hackshaw says they proactively assess and investigate landlords to ensure they are treating their rental properties as a business and complying with their responsibilities. He says that tenants need to trust that their landlords are doing what they need to do under New Zealand’s tenancy law from the start of the relationship. MBIE’s tenancy compliance team, which was established in July 2016, focuses on significant or ongoing breaches of the RTA which pose a significant risk to vulnerable tenants. (Source: Landlords.co.nz)
Yields creeping upwards
After ma ny years in the wilderness, yields on rental properties are picking up – which should appeal to those trying to adapt to the changing property investment landscape. Property value growth around New Zealand has slowed significantly in recent months and that prompted CoreLogic to analyse what it means for returns on investment properties. CoreLogic senior property economist Kelvin Davidson says that after a long period where average property values rose more quickly than rents, which meant gross rental yields fell, the situation has been reversing a little in recent months. (Source: Landlords.co.nz)
Property investors applaud decision not to implement capital gains tax
A Government decision not to implement a capital gains tax has been welcomed by property investors as "the best thing" it could have done. Andrew King, executive officer of the NZ Property Investors Federation, said there was a lot more going on for investors. Some had work to do to improve their properties, there were potential property management rule changes under the Residential Tenancies Act, ring-fencing and loan-to-value restrictions. Ardern said the Government still planned to explore options for taxing vacant land, including directing the Productivity Commission to include vacant land taxes within its inquiry into local government funding and financing and seeking a review of the current rules of taxing land speculators as a high priority for the work programme. (Source: Stuff)
CGT is dead - What’s next for the property market?
Former CEO of the Property Institute of New Zealand, Ashley Church offers a list of possible changes to the property and renting market. The Governments Healthy Homes legislation becomes operative, for investors, on July 1, 2021 and will set minimum standards for heating, insulation, ventilation, moisture control and draught-stopping in rental accommodation. Even without a CGT, rents can be expected to continue increasing because of the imposition of other costs, in particular, the ringfencing of tax losses which will represent an ongoing cost to landlords, will force many investors to seek to recoup these losses through increased rent. (Source: One Roof)
illion Tenancy Tenancy Risk Score
Unique to the Property Management industry illion Tenancy introduced a new benchmark for tenant checking. Using a combination of credit bureau data plus tenancy data into an easy to read, easy to understand, comprehensive and accurate Tenancy Risk Score (TRS). Along with your TRS will be the Tenancy Risk Report showing the relevant information which is contributing to the score. Here's how the TRS works
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