Legal Changes For Landlords – What Investors Need to Know | Ep. 180

In this episode, we are joined by Sarina Gibbon from the Auckland Property Investors Association (APIA). APIA and the New Zealand Property Investors Federation are currently representing the interests of landlords and property investors as part of the proposed changes to the Residential Tenancies Act.

Sarina walks us through the significant changes and what they mean for landlords, including:

• The end of 90 day no cause notices
• The process landlords and property managers will need to follow to evict a problem tenant in the future
• Some of the unintended consequences of the bill, e.g. the eviction of quality tenants before this bill passes, as protection for landlords

Our conclusion is that while the purpose of the act appears to be to safeguard tenants, the unintended consequence is that landlords will:

• increase rents to 'price' in the additional risk of not being able to get rid of problem tenants
• evict tenants before the bill to secure lower-risk tenants
• be less willing to take on a tenant that is considered risky, like younger tenants with little record of renting
• exit the lower-end of the rental market and move to the higher end, further increasing the shortage of affordable rental accommodation at the lower end of the market.

We also mention the property investor quiz. This 7-question quiz will give you a simple, 'yes', 'no' or 'maybe' answer as to whether you are in the financial position to invest in property.