Tenant trouble pushes landlords to sell
Monday 27 January 2014
Many landlords are choosing to sell their properties because of bad experiences with tenants, says the president of the New Zealand Property Investors Federation.
By Susan Edmunds
Landlords told the Bay of Plenty Times today that they were putting their rentals on the market because it was not worth the stress of dealing with damage and unpaid rent.
"I have just had a string of dodgy tenants who have cost me thousands and, for me, it is just not worth it anymore. I would rather invest in the sharemarket where I can make a profit without the hassle. It's not just me, I know a lot of former property investors who do not see the point anymore,” Tauranga landlord Daniel Sycamore said.
NZPIF president Andrew King said there were a lot of investors who sold up because they could not handle the tenants. “It’s often painted that they are selling because of capital gains and they want to cash in but actually holding a property as long as possible increases your profit. You don’t want to sell.”
He said it was quite a widespread problem.
There have been many reports over recent weeks of rental properties being trashed. One $1m property on Auckland’s North Shore was left in disrepair by its tenants.
King said it was important that landlords sorted their budget so they did not have to let a property to the first tenant who came along. “If you don’t get good applicants, you don’t want to feel compelled to take the best of a bad bunch.”
He said for a lot of people cashflow was a problem, so they struggled when a property was empty and were more likely to accept undesirable tenants. He said getting it right from the outset was a major part in offsetting any potential damage.
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