Monthly Landlord Newsletters

Welcome back to the Propertyscouts Monthly Landlord Newsletter, where we update you on all things New Zealand property market, investor insights, seasonal reminders, and more.

OCR down to 3% - What this means for mortgages and house prices 

The Reserve Bank has once again cut the Official Cash Rate, lowering it from 3.25% to 3%, marking a total reduction of 2.5% over the past year. While lower borrowing costs would normally support the housing market, the impact so far has been limited. 

House prices have continued to drift downward for several months, consumer spending remains soft, job growth has stalled, and overall confidence is subdued. For landlords, the immediate takeaway is that mortgage rates may edge slightly lower in the short term, offering some relief for refinancing or new purchases.

Looking ahead, lower rates will gradually filter through the economy, helping households and businesses regain stability. For landlords, this could mean slow improvements in tenant demand, more stable property values, and opportunities to refinance at better rates. Read more here

The Cost of Waiting on Rent Arrears

A Christchurch landlord recently learnt the hard way that waiting too long on unpaid rent can be a very costly mistake. He was owed nearly $23,000 in arrears but walked away from the Tenancy Tribunal with just $6,150 recovered. That’s a $16,800 shortfall - all because he sat on the debt for too long.

What went wrong?

• Delay: Rent arrears started back in 2018. Instead of acting, the landlord trusted the tenant’s promises and did nothing for years.

• Tribunal ruling: When he finally filed in 2023, the Tribunal only counted arrears from the last three years. The rest was wiped out.

• Lack of records: To make things worse, the tenant claimed he’d paid $21,000 in cash. With no receipts or proper ledger, there was no way to prove otherwise.

Key lessons for landlords

• Act early - Don’t wait. Once arrears hit your “line in the sand” (e.g. two weeks), issue a 14-day notice.

• Document everything - Keep a tight rent ledger, reconcile deposits, and always issue receipts for cash payments.

• File at Tribunal sooner rather than later - If arrears aren’t improving, escalate before the debt snowballs.

• Protect yourself and your tenant - Delays don’t help struggling tenants either; they just make the debt harder to manage.

The Tribunal isn’t “anti-landlord” - they’re applying the law fairly. But if you sit back and let arrears mount, you risk losing a big chunk of what you’re owed. Read more here

Avoid Water Damage Claim Pitfalls

Water is one of the most expensive risks landlords face - and it’s not just about the leak itself. The real cost often comes down to how your insurance policy classifies the damage. 

Sudden damage, such as a burst pipe or overflowing bath, is usually covered in full under your policy and can run into tens of thousands of dollars. Gradual damage - like a slow leak hidden under the bathroom floor - is treated very differently. In most policies it’s capped at a much lower amount, sometimes just a few thousand dollars. Many landlords assume all water damage is covered, but if the problem has been developing quietly over weeks or months, it’s likely to fall under that limited “gradual damage” benefit.

That distinction can make a huge difference - the gap between a $50,000 repair being fully covered, or you personally footing most of the bill.

So, what can landlords do to protect themselves?

• Know your policy limits - don’t wait until it’s too late to find out what your cover doesn’t include.

• Inspect your property regularly, beyond just the obvious areas. Hot water cupboards, roof cavities, and aging plumbing are all common problem spots. 

• Make sure tenants know how to shut off the mains water - a  simple wrench could save you in damage.

With water, you often have hours, not days, before the situation escalates. Read more here

Quote to Ponder

“Opportunities are usually disguised as hard work, so most people don’t recognise them.”

- Ann Landers

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Disclaimer

Given the opinions expressed in parts of the email, it’s important that we make it clear that the contents are opinions and observations and made in good faith.  

Propertyscouts NZ (2020) Limited, trading as Propertyscouts, and its associated parties (including directors, agents, employees, officers or otherwise) have attempted to provide   this information to the best of their ability but do not make any representations or warranties of any nature (intended or implied) as to the accuracy of the information on this communication. All recipients of this communication should conduct and rely on their own enquiries in relation to the information on this communication.

The information available on the properties listed for sale, rent or otherwise, has been obtained from the vendor or landlord of the property and the appropriate professional service providers. We do not and cannot verify or guarantee the accuracy of the information obtained in relation to the properties.

The information and/or materials available in this communication are intended to be general information only and may be changed at any time, without notice to you. The information and/or materials in this communication should not be relied on under any circumstances as a substitute for legal, financial, real estate, or other professional and/or expert advice. To the maximum extent permitted by law, Propertyscouts and its associated parties disclaim all liability, responsibility, and negligence for any direct or indirect loss or damage suffered by any person arising from the information and/or materials presented in this communication or any information and/or materials that arise from it.