NELSON PROPERTY INVESTORS ASSOCIATION
AUGUST 2016 NEWSLETTER
PO Box 198 Nelson
Our sixth meeting of the year is being held at the Honest Lawyer on Tuesday 30 August. Meeting proper at 7:30 pm and the before function dinner at 6 pm. Andrew King the Executive officer of the New Zealand Property Investors Federation is speaking. Andrew has spoken several times at our meetings. He attended Nelson College and knows Nelson well. I have never before seen a time when landlords and property investors were being criticised and penalised for all sorts of problems with the housing market like they are at the moment. Andrew is responding to the attacks with almost daily media releases. He often appears on radio, TV and other media putting our view across. A number of new banking and government penalties are in the pipeline and Andrew is well placed to explain these to you before you get caught. Of course he is first and foremost an Auckland property investor and is well placed to comment on what is happening up there along with what is happening around the country. Members are encouraged to come, listen, learn and be encouraged by what Andrew has to say. The Federation has recently introduced a number of exclusive member only deals with suppliers. I have asked Andrew to explain these as well.
If you are coming to the meal please email Glenn by return email.
THE MARKET
The news media is full of stories about the “good” times. Vacancies on Trademe have just about dipped below 100 in Nelson which I think must be an all-time low. Clearly those less desirable applicants with histories of not paying their rent and other nasty stuff are struggling to find gullible landlords.
The first sign of a gullible landlord is one who does not do credit checks. Nelson PIA has a deal with TINZ to carry out checks at very favourable rates. When becoming a client of theirs you need to include your membership number from your membership card. This entitles you to free annual membership and low individual check costs.
Despite the government and banking penalties being imposed on investors trying to discourage the provision of rental housing for those unable to afford a home of their own our world continues onward and upward. These policies are actually helping existing investors by pushing up rental prices and discouraging the building of cheap rental accommodation to keep the pressure on our market. Less completion is always good for those who have something to sell.
A MESSAGE FROM OUR NICK
I mentioned in the last newsletter about an email I had from Dr Nick Smith MP. So it was with great pleasure he has replied again to my bleating.
Here is what I wrote and how he replied.
Glenn,
Thanks for your further advice on drugs and tenancy law issues in your email of 24 June.
There are two areas of work on this. I am pushing Standards NZ as hard as I can to get an agreed testing and clean up methodology. I do worry that it has gone a bit over the top and costs in some cases falling on landlords and homeowners are way in excess of the risk.
I am also looking at further clarification of the law around evictions on drug use. Andrew Bailey, the new MP for Port Waikato, has a members bill on this issue. I will keep you posted on progress.
Best wishes
Hon Dr Nick Smith
Nelson MP
Ph: (03) 547 2314
From: Glenn Morris [mailto:glenn@glennsvacancies.co.nz]
Sent: Friday, 24 June 2016 10:47 p.m.
To: Nick 4 Nelson
Subject: RE: Nelson PIA newsletter and meeting
Nick
Good to hear from you … again.
Goodness knows how you cope with the mad world we live in and the demands on your time.
I must have been a man before my time.
In my submissions to the 2010 RTA amendments I made a number of submissions. My suggestions on the abandoned goods was accepted pretty well as submitted so I was pretty pleased with myself on that count.
I made another significant submission which was rejected (as these things are from time to time.) In hind sight it should have been inserted and would have served us all well today in the current environment.
You might like to add this little clause into your tool box when talking over things with my friends in MBIE.
“If landlords can prove that there are illegal drugs in a rental the tenancy adjudicator shall issue a termination order.”
The problem the select committee had was they thought I was asking the court to deal with a police (criminal) matter. Drugs have two sides to them. They have the criminal aspect which correctly lies with the Police and the criminal courts.
But they also have a social side related to health, finance, and condition of the property. Drugs influence how tenants act and this can and has always caused properties to be damaged. Landlords are screaming now about the damage to their properties and the risks drug using tenants place landlords at risk of being fined in the tribunal due to contamination. Leave the criminal courts to deal with bad people.
Save our bacon by making the RTA deal with the civil issue of drugs.
We do not want drugs in our properties but we are not agents of the government. It is way harder for the police to get a drug conviction. The evidence required for a conviction in the criminal court is much harder than the evidence required for the tribunal. Many times adjudicators tell landlords in front of them to go to the police. The police cannot and will not help us. They are not servants of the landlords helping us to run a business. Make the tribunals deal with the civil side of drugs.
We are heading for a major social disruption to the rental market if landlords keep being stung with massive clean-up bills and fear of being fined for doing our normal work.
Some Mum and Pop investors will give up being landlords and leave the business to professional landlords like myself. I do not think this would be good for New Zealand society.
Glenn
So folks that is all I have time to write this time. I hope to see lots of you at our next meeting on 30 August.
A major meeting with MBIE is coming up on 11 October.
I am expecting over 150 attendees so we will be returning to the Suburban club for this meeting. As soon as your personal invitation comes via MBIE or from me do not forget to book your free seat.
Regards and happy landlording.
Glenn
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