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  1. #1
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    Question New Property Legislation circa 2020.

    With the latest legislation re rental property are the land lords out there worried about whats in store for them from this piece on anti landlord legislation.

    What ways are there available to get around this draconian anti landlord legislation ?

  2. #2
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    Landlords, if concerned, have a bit of time to make adjustments. Over half of landlords are Property Managers and they will have a decent handle on what can be done now, and what the changes will mean going forward. Small self managed portfolios will run into trouble if they don't keep up to date with the increasing complex requirements, including tax.

    Some of things landlords can do now -

    - issue 90 day termination notices for even slightly risky tenants (already happening anecdotally)
    - increase rents to a level that is not significantly higher than the market
    - beef up their tenant selection process
    - check their inspection regime is fit for purpose
    - don't buy or build new
    - sell and bank the CGT free gains
    - SKI - spend the kids inheritance.

    If the rental pool shrinks then landlords should be happy. Rents will go up and only the best tenants will have any chance.

  3. #3
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    Quote Originally Posted by artemis View Post
    ...

    If the rental pool shrinks then landlords should be happy. Rents will go up and only the best tenants will have any chance.
    If the number of rental properties goes down...what happens to those properties no longer being rented out?

    I guess many could be sold to Kiwis returning from overseas. Some could also be sold to those who have postponed home ownership due to affordability issues.

    However a mixture of new rules and Covid could exacerbate NZ's housing chronically neglected housing supply and affordability. So I guess the new Covid crisis could well exacerbate the largely untackled pre-existing accommodation issues?
    Last edited by Bjauck; 08-08-2020 at 11:54 AM.

  4. #4
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    Quote Originally Posted by Bjauck View Post
    If the number of rental properties goes down...what happens to those properties no longer being rented out?
    Often hear people say well the homes are still there so what's the problem.

    Apart from the probability that rentals often house more people than own homes, quite a few ways to remove from the general rental market. For example leave vacant or remove from compliance with the Residential Tenancies Act (eg convert to short term rental, convert to non-residential, rent to family).

    Plus if new developments don't go ahead some rentals withdrawn will not be replaced. 2018 Colliers reported 49 Auckland apartment developments were cancelled for various reasons. One would have been reduced demand due to restrictions on overseas buyers. New apartments have generally been more targeted to renters than owner occupiers.

    Apparently we already have a housing shortage. The government has just announced a new underwrite scheme to help developers that have trouble getting finance. Might help but won't go far.

  5. #5
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    This is actually good news for long-term landlords as it will mean much higher rents. It will also mean marginal tenants will struggle to get properties as landlords will take a lot more care making sure they have an A1 tenant who has no credit issues with no Tribunal hearings whatsoever. This is one of the reasons why the waiting list for public-housing grows . Love this government

  6. #6
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    Best way that I know is to give tenants only a three month lease, if they turn out to be good tenants renew the lease for another three months and if they are again good tenants renew the lease for another three months etc, IF the tenants turn out to be dud/bad tenants terminate the lease by not renewing the lease.

  7. #7
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    Quote Originally Posted by whatsup View Post
    Best way that I know is to give tenants only a three month lease, if they turn out to be good tenants renew the lease for another three months and if they are again good tenants renew the lease for another three months etc, IF the tenants turn out to be dud/bad tenants terminate the lease by not renewing the lease.
    To attract a tenant wanting long term accommodation, you would need to explain to them that you will renew if you find them acceptable. Then if you do not renew their lease you may have a problem explaining why. It isn't that simple.
    As always the best solution is proper vetting of the tenants. Don't rely on property mangers to do that if you can avoid it. But even the best landlords get caught occasionally.

  8. #8
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    Quote Originally Posted by whatsup View Post
    With the latest legislation re rental property are the land lords out there worried about whats in store for them from this piece on anti landlord legislation. What ways are there available to get around this draconian anti landlord legislation ?
    Ms Collins has said today a National led government will repeal this, so there's a hint.

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