Property Management

Editorial: State house damage

Bad tenants are a landlord's worst nightmare. Their penchant for vandalising property, sometimes just before absconding without paying the rent, has soured many an apparently sound rental accommodation investment. This is a source of woe not only for some individual investors but, increasingly, the country's biggest landlord, Housing New Zealand. New figures reveal that more than half of its 60,000 properties are being damaged by tenants each year. And that the cost of the damage - $18 million in the latest year - has risen by 68 per cent in the past year. And that, worst of all, of the $43 million worth of damage in the past three years, only $5 million was recovered from tenants.

Tuesday, October 05th 2004

Such a recovery rate would be unacceptable to a private landlord. Nor should it be tolerated by Housing NZ. Its tenancy agreements state that where damage to a property is not the result of normal wear and tear, the tenant is responsible for carrying out, and meeting the cost of, repairs. Clearly that is not being policed and enforced adequately, even if, as Housing NZ says, "damage" has been reclassified to incorporate work done to bring vacated properties up to scratch.

Reversing the trend will probably require a combination of carrot and stick. Incentives for tenants to keep their properties clean and tidy could be contemplated. In all likelihood, the cost would pale alongside the escalating sum being paid to repair vandalism. As well, errant tenants must be pursued more assiduously. Heightened co-operation between Government departments would be a good starting point. There should, for example, be greater use of the sort of device that sees rent arrears captured by Work and Income paying part of a beneficiary's income directly to Housing NZ.

Read More - Opens in a new window

Most Read

Unity First Home Buyer special 3.99
SBS FirstHome Combo 3.99
ICBC 4.25
TSB Special 4.39
Co-operative Bank - First Home Special 4.39
SBS Bank Special 4.49
Unity Special 4.49
ANZ Special 4.49
Westpac Special 4.49
Kiwibank Special 4.49
Co-operative Bank - Owner Occ 4.49
Kainga Ora 4.49
ICBC 4.59
Nelson Building Society 4.67
Unity Special 4.69
ANZ Special 4.69
BNZ - Std 4.69
Wairarapa Building Society 4.79
Westpac Special 4.89
SBS Bank Special 4.89
Kiwibank Special 4.89
Co-operative Bank - Owner Occ 4.89
ICBC 4.99
Kainga Ora 5.15
Westpac Special 5.49
ASB Bank 5.69
TSB Special 5.69
BNZ - Std 5.69
SBS Bank Special 5.69
Co-operative Bank - Owner Occ 5.69
AIA - Go Home Loans 5.69
Kiwibank Special 5.79
China Construction Bank 5.99
SBS FirstHome Combo 3.29
AIA - Back My Build 3.34
SBS Construction lending for FHB 3.74
CFML 321 Loans 3.95
Co-operative Bank - Owner Occ 4.99
Co-operative Bank - Standard 4.99
Heartland Bank - Online 5.30
ICBC 5.39
Kiwibank - Offset 5.65
Kiwibank 5.65
Kainga Ora 5.69

More Stories

Wednesday, January 07th 2026

Queenstown not off the radar for first home buyers

First home buyers are not being deterred by Queenstown’s soaring house prices.

Record levels of first home buyers taking out low deposit loans

Tuesday, December 23rd 2025

Record levels of first home buyers taking out low deposit loans

About half of all first home buyer lending has been done at a less than 20% deposit in recent months.

Buyers sitting on the sidelines in best time to buy in a decade

Thursday, December 04th 2025

Buyers sitting on the sidelines in best time to buy in a decade

Stable house prices, low interest rates and plenty of houses to choose from are still not enticing buyers.

Differing views on 50-year mortgage

Tuesday, December 02nd 2025

Differing views on 50-year mortgage

US president Donald Trump recently raised the idea of 50 year mortgages; but New Zealand advisers say such long loans won’t take off in New Zealand.