|COMING UP IN THIS EDITION
Rising rents on the horizon as government policy kicks in
Rent increases ineveitable as companies on charge the letting fee to landlords. Last week, one of Wellington’s largest Property Management companies made the headlines recommending to landlords that they increase rents by $6 a week to recover the cost of the letting fee as they are forced into on charging it to the landlord. Many criticised Oxygen Property Management for taking such an approach. However in our opinion, they were simply doing their job. To expect a company not to try and recoup losses that their clients may face due to landlords absorbing the letting fee is utterly naive and delusional. Read more.
COMMENT: War on tenancies should stop
Life for rental property owners may become tougher as Labour’s newbie Housing Minister Phil Twyford tries to “make life better for renters”, Stop the War on Tenancies founder Mike Butler warns. The current raft of proposed tenancy reforms comes on top of what is essentially a 10-year war against the owners of rental property. Concerns about this have prompted a group of us to establish a new lobby group, Stop the War on Tenancies. I have owned rental property in Hastings since 1990. One of our tenants has been in her flat since 1990, on a periodic tenancy, which started with a weekly rent of $130 and a bond of $260. The rent has increased but the bond hasn’t. Read more.
Fierce opposition to tenancy proposals
Nearly 100% of landlords who completed a simplified tenancy law reform submission form believe it should be possible to buy and sell properties without sitting tenants. This highlights widespread concerns about the Government’s proposal to increase the tenancy termination notice period from 42 days to 90 days in all circumstances, including the sale of a property, as part of their tenancy law reforms. But among landlords there is fierce opposition to many of the Government’s proposed reforms to the Residential Tenancies Act.
'Tenancy Fees' for landlords replace banned letting fees
Letting fees are back, now being levied on investors rather than tenants. A law change was passed at the start of this month to ban the fees, which are usually equal to a week's rent plus GST. The ban comes into effect on December 12. Housing and Urban Development Minister Phil Twyford said it would save tenants millions of dollars.But now property managers are introducing a fee to replace it, which will be charged to owners. It has led landlords to warn that rents might rise to cover the cost. Quinovic wrote to property owners telling them that the letting fees had covered the time and cost associated with finding and placing new tenants. Read more.
NZPIF lANDLORD OF THE YEAR 2018
Leilani Driessen, winner of the NZPIF Landlord of the Year 2018 is a ‘shining example’ for NZ landlords, says Tenancy Services. Tenancy Services presented the award at the annual NZPIF event, and was represented on the judging panel.
Not suprisingly, Leilani is a TINZ member. Here is what she has to say about TINZ...
"As a landlord running our family business, I need to be able to minimise any potential risks with the right tenant information from a trusted source. TINZ gives me an instant summary about a prospective tenant in a manner that is fast, good value and factually based. This allows me to make better, more informed decisions helping me to minimise those potential risks. It’s a fantastic service that I really just couldn’t do without – thank you."
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This months Winner of the Reds is...
Coromandel Beaches Rentals
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From the desk of NZPIF:
- Domestic war zones will increase under proposed tenancy law changes.
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