APIA Blog

RSS Feed

The Faafoi announcement: 4 things for landlords to do right now

Monday, November 18, 2019

IMG CREDIT: Interest.co.nz

Yesterday afternoon the government outlined the next phase of its housing agenda which involves overhauling the Residential Tenancies Act once again. While we have come to expect significant changes to the RTA under this government, we consider that which was announced to cause such major disruption to the landlord-tenant dynamic as to further tip the balance of power away from landlords who, let's not forget, are the legal owners of these rental properties. 

Therefore, we feel that it is important for organisations like ours to offer a guiding voice for landlords during these stressful times: 

1. Keep calm: Expect to panic 
It is important to know that one press statement doth not a law make. Yesterday’s announcements merely put forth the government’s intentions - a wish list, so to speak. They are not statements of law. The legislative process is not yet trigged. There isn't yet a bill in front of Parliament. Until that happens, there are still a lot of salient details unknown to the public.
 
We’ve been here before. Every time anyone in the Beehive breathes a word against landlords, the internet voices become predictably irrational. Expect a wave of ‘experts’ making doomsday prophecies based on the flawed premise that all tenants are by definition bad and act with malice. They are not and they do not. Expect to be told that the end is nigh and that you should have dumped your portfolio yesterday. Both untrue.
 
Soon enough, new ‘industries’ will emerge offering solutions and guarantees that look to completely circumvent the new risks you now face. Some of these industries are legitimate, others are simply leveraging off your fear.
 
You are going to feel a raft of emotions most of which are not going to be super great. We recommend that you take no drastic actions and make no major decisions about your rentals when you find yourself gripped by fear and uncertainty. Remember this: There is no bill yet. 

2. Stay sharp: By all means, keep panicking

To be clear, we are not here to lull you into a false sense of security. Some of these changes Kris Faafoi talks about are nothing short of catastrophic for landlords. We don’t just want you worried, we want you to worry enough to take action. And we will be with you all the way. Our goal from here is to channel your anxiety into constructive actions and productive outcomes. 

The next few months are going to be confusing and emotional for a lot of us. Focus and act on the facts, not innuendos or hearsay (and there will be plenty of those around). Find your sources of truth and make sure you know what you should know. Things to know right now include: a clear summary outlining the substance of the proposal written by APIA Vice President, Peter Lewis who attended the actual announcement as well as a clear commitment from the NZPIF to continue with its advocacy efforts to push back against the harshness of these changes. 

Sign up to our newsletters (sign up for a free subscriber account if you are not already a member), follow us on Facebook, or join our members-only private Facebook group.  The NZPIF also pushes out regular communications to landlords and Tenancy Services has a newsletter to keep landlords up to date. 


3. Speak up: If you don't, no one else will
Trust us when we say this, now isn't the time to be cynical. Sitting out by staying mum is a sure-fire way of giving away the house (pun intended!). Start getting your head around the absolute imperative to speak up if you want a future in property investing. 
 
In the coming weeks, we will be developing and releasing resources to help you vocalise your views. We will be helping you with engaging with your local MPs, making submissions in response to the eventual bill, writing to media outlets and participate in social media dialogues. The time has come for landlords to speak up in a loud, clear and unified voice. Speak up and be with us. 

4. Carry on: Remember, business as usual 

The Faafoi announcement yesterday was nothing short of disappointing. Still, that doesn't take away from the fact that many of you reading this still have rental properties to run and tenants to look after. Don't let what you fear could come affect your ability to deal with what is already in front of you. Keep up with your inspections, keep crunching those numbers, reviewing your rents, chase up late-payers, talk to your team and improve your business practices.Many of us have worked far too hard for far too long to get to where we are today. It would surely be a big crying shame if we allow ourselves to be derailed and deflated just because Kris Faafoi stood at a podium and said a few words yesterday. 

So, chin up. Keep calm, stay sharp, speak up and carry on. 

If you agree with our message, please forward and share with your network.

Recent Posts


Tags

bond form property management parry v inglis financial advisers act subdivision buyer's agent ask an expert tenancy issues Standards New Zealand wins sale and purchase anz gluckman report off the plan property personal growth banking Property (Relationships) Act asbestos rta rental wof meth management CoreLogic shower dome initio clnz trespass property maintenance How to Kris Pedersen Mortgages and Insurance cash-flow investor Question and answer Landlording beginner investor interest rates market debt enforcement worksafe Investment tip p lab market rent damage investment strategy Market report meth contamination fixed-term tenancy housing bubble ocr government Sponsored post HSWA scotney williams building HHGA auckland council CCC renovation Editor's Choice extractor fan speculator education DTI TCIT property value structure relationship productivity nzpif watercare LIM housing affordability rent arrears HHS Gluckman income RBNZ RTAA 2019 inspection rent election 2017 cgt boarding house business tenancy tribunal maintenance ring-fencing Must knows holiday house warm up new zealand skill shortage Guest blog development water bill interest only buying landlord privacy unitary plan sublease buying rules negotiation twg report ird airbnb wealth creation cat heating bond rta reform insurance Tribunal case study rental market Holler tenant robert kiyosaki ventilation property cycle mortgage first home buying Investor story positive cash flow auckland finance lvr minor dwelling trust return trademe smoke alarm capital gain warren buffett television data security heater Must know Jeff Bezos letting fee tenancy services rent increase insulation equity tax principal and interest house prices sale and purchas bad tenant reserve bank winz advice short-term rental Q&A legal letting partners termination

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited