Taxes and compliance are boring topics – but you still need to take them seriously. We’re trying to make sure our owners are complying with all the right regulations, which means answering your questions, sourcing tradies and checking your smoke alarms.
However, we can’t do it all on our own. If you own a rental property, you need to stay compliant in several important areas:
Smoke alarms: Your property must have a working smoke alarm. We check all smoke alarms when we inspect your property and we’ll let you know if it needs replacing.
Insulation: Ceiling and underfloor insulation will be compulsory from mid-2019 in any property where it can practicably be installed.
Insulation statements: All new tenancy agreements should be accompanied by an insulation statement. We can organise someone to come and assess your property’s insulation to declare that it is sufficient (or cannot be installed). Failure to make a statement or making a misleading statement can lead to a $500 penalty.
Heating: A heat source may be compulsory but it can be tricky in an apartment – heat pumps aren’t always an option. We do not recommend plug-in oil heaters; we do organise regular checks by an electrician to ensure the plugs and cables are safe, but this is an expensive exercise. Talk to your property manager.
Tax: Inland Revenue is dedicating significant time and money to pursuing property investors under the bright-line test. Land Information New Zealand shares its data with the IRD, which uses that data to look at every property transaction. Check with your lawyer and tax advisor when you are buying or selling any property to fully understand your tax obligations.