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Changes are coming…
Interest tax deductibility. We mentioned in the last news snippet, the interest tax deductibility rules for residential property have changed and interest limitations are being phased back out.
From the 1st April 2024 – 31st March 2025 you can claim 80% of your interest as an expense and from the 1st April 2025 onwards it will be back to 100%.
Bright-line. The bright-line property rule has also changed. From 1st July 2024 the bright-line property rule will only apply if the property is sold within 2 years of purchasing. (Pre July 1st 2024 the current bright-line periods continue to apply).
As always, please check your own personal circumstances with a Financial Advisor, as these rules are complex and have exemptions and quirks. You must ensure that you receive advice tailored to your financial position before making any decisions.
Residential Tenancies Act updates
The Amendment Bill is being developed by the Ministry of Housing for introduction to Parliament in May 2024. IF the Bill passes, it could become an Act in late 2024.
The bill includes the following;
(1) Reintroducing 90-day ‘no cause’ terminations for periodic tenancies, meaning owners can end a periodic tenancy without requiring a specific reason.
(2) Reintroducing owners’ ability to give notice to end a fixed-term tenancy at the end of the term without requiring a specific reason.
(3) Notice periods for when an owner wishes to either move back into their property or have an unconditional agreement for sale requiring vacant possession will revert back to 42 days. This is a changes from the current 63 days and 90 days respectively.
(4) Returning tenants’ notice period for ending a periodic tenancy to 21 days.
(5) Making it easier for owners to accept tenants with pets by introducing pet bonds which will be 2 week’s on top of the current 4 week’s bond collected. Owners will still need to consent to tenants having a pet, however consent can only be withheld on ‘reasonable grounds”. You can read the Beehive’s announcement Pets.
For further information on RTA Amendments read more HUD updates.
Well done Seren – Property Manager of the Year 2023
We recently attended the PMC (Property Management Conference) in Wellington. It was great learning for us and gave some fantastic insights as to how we can better serve our customers.
We were tickled pink when our own Seren Ball picked up the award for Property Manager of the year! Go Seren – we are very proud of you.
We won!
We mapped out all 27 of our regular business processes and one by one we are looking at how we can improve each one. Which technologies are available, when efficiencies can be made and where we can offer more sustainable/environmentally friendly solutions. The first one we looked at was our tenant finding process. How to give both property owners, existing tenants and prospective tenants “the greatest rental experience in NZ”. Here’s a brief look at the changes we made;
- Property Readiness – Work it, work it…
We work with the existing occupants (either owner/tenants) to ensure that the property is “ready”, decluttered and we also have a small amount of props (throws, plants, jugs, towels and fruit) to add some flair and colour.
- Adverts – Attract interest early
Our adverts give prospective tenants enough information about the property to be confident enough to apply in advance of the viewing (not mandatory of course).
- We stand-out – We use our own template frame with a logo in order to stand out from other adverts
- We only use professional photography
- We have embraced technology and have a 3D walkthrough on all listings (where permission is granted) in order to showcase the property.
- Viewing – Get close and personal
All attendees interested must book in for one of our twice weekly viewings and we keep in touch. They receives a links, texts and phone call reminder to attend and meet us! During the small viewing we CHAT. We establish who would like to proceed quickly. By using our 2 person team structure coupled with evening working it means the PM can be at the viewing and whilst their partner at the office will following-up and starting to process applications for the interested parties. All this can happen within 30 minutes of the viewing and it does!
- Instant Feedback – Faster approvals
Contact with the property owner enables faster approvals. After every viewing, from the viewing, the owner receives a video about how the viewing went and when to expect completed applications.
- Strategic Planning – As per the plan!
At the end of each week, we have a quick report that summarises the week of the campaign and identifies the pre-agreed strategy for the following week for the owner. We have a 4-week strategic plan for every listing (which aligns with a tenant’s notice period). The customised plan includes changes, tweaks and incentives to keep the campaign hot!
We’re so happy that this simple but effective idea has been recognised and as such we are proud to have been announced amongst the finalists in the 2022 Westpac Awards for Excellence in Innovation.
Regulation confirmed, meth standards sorted and more changes to Healthy Homes…
Big News – Minister of Housing Megan Woods made three big announcements this month. Here’s a quick summary of what coming;
- Property Management will be regulated by May 2026.
As you know The Rental Bureau petitioned and made a submission in favour of this, as we want our great standards to be shared by everyone in the industry. It means that all PMs must be qualified and licensed to practice – we are very happy and very ready for this!
- Submissions for one recognised meth standard.
Again – super happy as since the Gluckman Report came out, there have been discrepancies between what is considered to be safe. The Tenancy Tribunal recognises the Gluckman’s minimum standard less than 15mu to be safe, however many insurance companies and the official guidelines are still working to 1.5mu leaving tenants, owners and PMs unsure how to proceed. This clarity is long overdue and very welcome!
- Healthy Homes – 12-month extension.
The reason behind this extension is that state housing officials have been unable to meet their own deadline, and it’s understandable this has caused some unrest to say the least. However, the reality for our clients is that only 15% have periodic tenancies that were signed prior to July 2021. The remainder have the security of renewed fixed terms, which meant healthy homes compliance was triggered. We have 1% of our clients who will benefit from the extension and remain “compliant” the rest of you are job done and can sit back and relax!
