How scary is the new ring-fencing legislation? Well, just ask any property investor, most of whom are ma and pa investors with less than three rental properties and they’ll tell you it’s outright frightening. They are the investors, most likely to be among the 116,000 already declaring a loss on their properties and times look […]
Tag Archives | rental properties
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’.
Demand is up for rental properties in most areas except Canterbury where the median rent has fallen over the past twelve months by two percent. Increased supply of property in Christchurch post-rebuild has meant less demand for rental accomodation and the median weekly rent is now back to where it was three years ago according to Trade Me Rent Price Index.
Reports that Landlords are attempting to increase profits from overcrowded rental properties has been refuted by Andrew King, Chief Executive of NZ Property Investors Federation in a news item on NZHerald today.
Yesterday a news item suggested maybe overcrowding was an initiative by greedy landlords to maximise profits with student accommodation in Auckland.
A changing residential rental property environment in New Zealand means that the time is ripe for landlords and tenants to consider longer term residential leases that are similar to commercial lease arrangements with rights to assign, sublet, and renew.
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.
Statistics suggest Landlords are not increasing rents unrealistically. While there was a flurry of activity at the end of 2014 and the being of 2015, the past five months have seen only small increases in weekly rents. The Trade Me Rental Price Index is a reliable guide of weekly rent price variation due to it’s monopoly status as the primary channel utilised by property managers and private landlords for marketing rental properties.
Renting is a choice for many people who just don’t want the hassles of homeownership and their lifestyle doesn’t suit it. There is a rise in single households too, so owning the kiwi dream of a typical three bed standalone in suburbia is not on their radar now nor any time in the future.
There are professions that require extensive travel and with today’s global economy people are a lot more transient, moving cities, countries at very short notice.
In the last five years the average weekly rent has gone up $70 a week from $340 – to $410. It has also climbed 6.5% from February 2014 to February this year according to Trade Me’s Rent Price Index. While you’d expect larger weekly rent rate increases in the Auckland region they were rather modest at just 5.6% with Wellington at 5% and Canterbury at 7.1%.
The huge property value growth has sparked a lot of talk lately about increasing rents and some journos have gone as far as to say Landlords are exploiting the housing shortage.
According to the EPA, some 75% of all solid waste could be recycled, but less than half that actually is. As Americans focus more and more on ‘greening’ their lives, recycling is turning into something that people are actively demanding (rather than grudgingly submitting to like it was 15 years ago.)
Not all property management horror stories are with properties managed by landlords. Property Management companies can also get it all wrong causing the landlord unnecessary pain even when they have done the right thing and handed their rental property over to a professional property management company.