National to look after investors

A National-led Government will re-look at amendments to the Residential Tenancy Act and try to redress the balance of both tenants’ and landlords’ needs.

Thursday, September 11th 2008, 12:00AM

by The Landlord

In introducing its housing policy paper, National says it will address core policy and legislative issues that have given rise to housing supply and housing affordability problems.

Housing spokesperson Phil Heatley says the party is concerned that Labour and the Greens are making it more and more difficult for landlords to provide housing and to provide it with lower rents.

“We are concerned introducing a capital gains tax, not allowing rental income losses to be written off against income tax and making landlords pay for accidental damage by tenants or damage by their guests, are all actions that will force landlords to put up rents to compensate.”

National will examine the current process of securing long-term rental agreements to make them easy to set up for both tenants and landlords.

Heatley explains much has been made of more people renting for longer because the cost to buy their own property has sky-rocketed. “National suspects that the current law already allows long-term rental agreements – say up to 20 or 30 years – without the need for change. However, if new law is necessary, National is determined to make sure that such agreements can only happen if both parties fully agree.”

National will make sure renting out is not too tough for the thousands of mum and dad property investors who provide houses for almost a third of the population. To avoid forcing up rents or a massive withdrawal of much needed rental accommodation, National will ensure the cost of property damage is not passed on to landlords when they have no control over the day-to-day activity in a house or over who visits.

Heatley believes no one will consider becoming residential landlords if they are overburdened with tax and regulations. “We will retain the status quo on capital gains tax and will retain deduction provisions for those whose rental property runs at a loss, as these provisions are also available to a number of other investment types.”

He adds that Labour has gone very quiet on these two points “because their friends, the Greens, want to change both capital gains and LAQC tax laws if they are a part of any new government.”

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