Donald Trump is sworn in as President of the United States this week and the world as we know it will be a different place. Borrowing interest rates are rising and NZ banks are having to borrow more overseas to fund existing lending commitments according to this news item.
Tag Archives | Pedersens Property Management
Ten year tenancies are back in the news and also in the discussion on PropertyTalk.com. On the news site stuff.co.nz an article reports Auckland Property Investors Association (APIA) have called for a change in the fixed term tenancy agreements offered to residential tenants.
Property investors are buying fewer properties therefore there is less new rental stock in the market. While this will be pleasing the orchestrators of the recent LVR rule changes competition among property managers is now much tighter.
Tenants need to know they are now on notice regarding smoke alarms. The Tenancy Tribunal fined a Hamilton tenant for tampering with smoke alarms this month setting a new case-law precedent for future cases. Landlords and property managers have taken notice of this outcome and it can be said the Residential Tenancy Amendments Act 2016 (RTAA) effective 1 July 2016 is now very much part of Tenancy Tribunal legislation ‘tool-kit’.
In the media a couple of reliable sources confirm rent increases have not risen alot over the last twelve months – so where are the greedy Landlords? Property sales and prices continue to forge ahead with gusto while rents remain static thus widening the gap between sales and rents according to the latest Trade Me Property Rental Index.
Talk of longer commercial-like tenancies for residential properties is creating a lot a discussion among property investors. Do Landlords want longer tenancies? Shorter tenancies offer Landlords the opportunity to adjust the level of rent to the market rate or higher on properties that have fallen behind and there is more control with more property inspections and renovations can be carried out between tenancies.
Over the years Dame Rosanne Meo has lobbied for a law change so all Property Managers are regulated. The Real Estate Agency Authority (REAA) is arguably doing a great job with the Real Estate Agency Act and while property managers within a Licensed Agency are regulated under this Act there are hundreds of property management managers that are not.
Auckland rents have increased by 28 percent in last 5 years, while property values in this region have sprinted ahead at 63 percent. In the regions, rent increases over the same period from August 2010 have also moved upwards by 20 percent. Property values outside of Auckland have also increased by the same amount – 20 percent.
Homeowners could become property investors as a result of Auckland Council’s easing of density limits in selected areas of Auckland. Glenfield on the North Shore is earmarked as an area suitable for the new density limit with homes able to occupy as little as 200 sq metres. Under this new limit a homeowner in Glenfield with say an 800 square metre section could remove their home and build four townhouses before they could build just two.
All eyes are now on the rental property market and the remarkable shift from homeownership by the age of thirty, to living in rented accommodation long term.
The question now being asked by many commentators is: Does the Residential Tenancies Act 1986 (the Act) support long term renters or is it only good for the ‘flatters’?
Rental income growth is moving at a much slower pace than property value growth throughout New Zealand. This is actually a relief too. Imagine rents growing at 15 percent per annum? I know ‘a dream come true’ for Landlords well until tenants fail to pay the rent or fixed tenancies becomes a thing of the past.
Landlords may come off badly if Auckland Council go ahead with their proposed bylaw to charge homeowners with rubbish in their front and back yards. To be clear here they’re not talking grass that hasn’t been cut for a couple of months complaints.