Across New Zealand, there are many legislation and reform changes taking place to ensure that tenants renting properties are living in homes that meet the minimum housing standards, as well as having fair renting rights.
Most investors who are maintaining their properties and acting in accordance with the fair renting rights, will not be affected by these changes and we assume that a lot of the research, figures and statistics that are being shared in the media are based on private landlords renting their properties.
Recent research has revealed that 58% of people who rent are currently living in a property that needs repairs. The research has also revealed that tenants who rent are concerned about asking for repairs. This concern ranges from simply being ignored to being evicted, which has sparked the national reforms on renting.
It is more important than ever to ensure that your investment property is well maintained and that maintenance requests are actioned quickly.
Some of the new changes that will be relevant to investors for 2019 and most importantly is the insulation requirement deadline. All ceiling and underfloor insulation will be compulsory in all rental homes from 1 July 2019. As a landlord, you are responsible for making sure your rental is healthy and safe to be lived in by your tenants. Learn more about the regulations in this blog so you comply with the new standards. Learn more about the insulation deadlines by checking out our blog - The insulation deadline for rentals is looming
We feel confident that many of our investors will continue ‘business as usual’. However, if your property requires repairs and maintenance – now is the time to act and get prepared.
Tips for buying investment properties
Many key hotspots that are showing good investment returns can sometimes be found outside of your local area. What do you need to know if considering buying an investment property in Taranaki but you live elsewhere?
- Make sure you seek out professional advice
- Know the local vacancy rates
- Research any up and coming new developments
- Visit city council websites for local information
- What is the potential for growth in the area?
- Know the contractual difference, such as conditional and unconditional approvals, disclosure documents, strata or body corporate statements and cooling-off periods, to name a few
- Research is the key
- Get online and conduct comparative market comparisons of similar properties that you are looking to purchase to have a clear and educated idea of similar sale prices in the area and the weekly rent expectations
- And finally, if buying a property sight unseen, make sure you undertake the necessary inspections, such as a building or LIM report
If you are wanting to know more about owning a rental property then our Ultimate Guide to Owning a rental property is a great place to start. Download a copy today by clicking on the following link.
Our Property management team at McDonald Real Estate have a range of information to help you get on the property investment ladder.
