There are new changes to the RTA which every landlord, private AND professional, needs to know, understand and implement. If you want to find out what these changes are, Google them for yourself. This article deals with what this mean to the rental property arena.
Here's my two bob's worth. The days of the old "she'll be right", No. 8 wire, DIY landlord are coming to an end in New Zealand. I think that you'll see some or all of the following:
1. More rentals will be managed by professional Property Management companies
2. The private landlord will become a rare sight
3. The little property management operators with a small rent roll working out of the back bedroom will become extinct
4. Real Estate offices, although viewing property management as a profitable add-on to their business during market drops, will work out that it's just not worth keeping the operation running
5. Property Management fees will rise
6. Rents will rise - possibly by as much as 10%
7. Your responsibilities as a landlord will be much more onerous, requiring compliance with all kinds of new rules.
Please don't think I'm trying to frighten you with all this. I'd rather start a discussion and find out what other people think. If you have any input to this discussion, email me at firstname.lastname@example.org
However, there's a perfect storm brewing in the rental property management field, and it won't be long before someone gets dragged kicking and screaming through the courts at great expense.I'd try my hardest to avoid that...