Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

The Effect Of The Covid-19 Regulations On Landlords

The NZ Property Investors Federation (NZPIF) has just organised the first of a series of surveys of rental property owners and property managers to see how they are being affected by the Covid-19 lock down. There were 621 respondents in this first survey. Between them, these respondents manage 6,056 rental properties.

“The results of this survey after the first week of the Covid-19 lock down disprove the assumption that anyone who owns a rental property is rich and tenants should be allowed to stop paying their rent”, says Sharon Cullwick, NZPIF Executive Officer.

Private individuals provide 85% of rental properties in New Zealand. While most of these people have other jobs or businesses that are their main source of income, there are also those who rely on their rental income to put food on the table to feed their own families.

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

The majority of tenancies, 81%, have not experienced any change. However, 6% of tenants have left their rental property and a further 2% have stopped paying rent.

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.

For the 166 landlords who have lost rental income, the average amount lost after only one week in lockdown is $1,059.

Regarding the personal incomes of these landlords, 41% have not been affected by the lockdown position. However, 59% have lost all or some of their regular income from jobs, contracts or business.

Of those that have had their income affected, 47% 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.

While a majority of respondents are financially secure for the moment, 21% will need assistance if the lock down continues for more than a month and 5% need assistance now.

Rental property providers are ordinary New Zealanders who are sharing in the loss of income like other sectors of society. Many will be part of the front-line staff serving our communities so well through this crisis.

We are all in this together. Landlords are doing what we can. As we are keen to know the ongoing effect of the Covid-19 regulations on the rental market, the NZPIF will conduct this survey weekly.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

QV: Tax Changes Yet To Dampen Red-Hot Housing Market

Just over a month has passed since the Government announced measures aimed at dampening the rampant growth of the property market, and yet the latest QV House Price Index data shows the market hit a new high in April. The average value increased 8.9% nationally ... More>>

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>