When tenants cause damage
The much publicised insulation deadline of 1st July is fast approaching. Making homes warmer and drier for tenants is highly desirable and a legal requirement. All rental properties must be compliant in relation to underfloor and ceiling insulation by this date. Non-compliant landlords and their property managers face a stiff fine of up to $4,000 for failing to have the insulation in place. The fine will be paid to the tenants and the landlord will be issued with a Notice to Remedy the breach.
Having an independent assessment is the best way to ensure the property complies with the new regulations and also removes any subjective views. Insulation installers will assess your property and quote if it requires a top up or a new installation. Most charge a nominal fee to provide a certificate of compliance. Some will refund the cost of the assessment if the quote is accepted. Alternatively a building inspector will give a totally objective report but this will come at a cost of around $110 + GST.
So you have been debating if you should go long term rentals or short term holiday letting? We have some compelling reasons why you would choose the former.
The lack of long term houses for tenants is a hot political topic. In a bid to address this, QLDC is looking at changing legislation to prevent property owners renting short term. Even if this does not go ahead (and it looks like it will), future similar legislation could result in the same thing - a sudden increase in the supply of rental homes. As the owner of an investment property you should want to be positioning yourself in the market before short term properties potentially flood the market and impact rents. It is happening in Taupo. Read more ...
I have seen many property owners switch from short term rents to long term because of the erratic cash flow that accompanies holiday letting. It is either feast or famine. Great if your house was booked for Challenge Wanaka, A&P Show weekend and Warbirds but what of the in-between times? Long term rentals translate to an even cash flow.
Thirdly, if you rent short term, do you know who made the booking? Is it really for Mrs X from Ponsonby or is it for her school leaving son and his delightful friends? There is a lack of scrutiny of guests on many booking sites.