Rotorua Property Investors' Association

021 122 8895

News & Updates

Recent updates


Landlords are people too

A NZ Property Investors Federation (NZPIF) survey has found that rental property owners are affected by the Covid-19 situation just like tenants and other New Zealanders”, said Sharon Cullwick, Executive Officer.

“A little-known fact is that New Zealand rental property providers do not own vast numbers of properties. The average number is less than two, with 90% of providers owning just one or two rentals to help them through retirement,” she said

A vast majority of rental providers have a main source of income that isn’t rent. However, the NZPIF study found that 59% of providers have lost either part or all of their main income.

Of those that have had their income affected, 46% have had some loss of income, 33% have lost all their income but have received some government assistance, and 21% have lost all their income and have not received any assistance.

The survey shows that Government initiatives, through income supplements and fast-tracking welfare assistance, have helped to keep tenants in their homes.

However, 6% of tenants left their rental property as soon as lockdown began and a further 2% have stopped paying rent with no warning.

Landlords have reduced the rent for 5% of their tenancies and deferred rental payments for a further 1.5%.

For landlords who have lowered the rent, the average reduction was 43% or $210 per week.

Expenses, such as rates, insurance, repairs etc account for 30% to 50% of rental income before mortgage payments are even taken into account. Many landlords simply cannot afford not to have rent coming in.

The Covid-19 situation is the fault of neither tenants or landlords. All will be affected in different ways and the NZPIF recommends good and honest communication to keep people in their homes.

Tags: mddiarelease

Sponsors & Partners