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Short Term Rental ?? - can you still do it

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  • Short Term Rental ?? - can you still do it

    Well the property market has stopped, and I am stuck with a development type property that I am picking will not sell for a year or more.
    Maybe 18 months, but it is still on the market.

    I am thinking, I should rent it out for some extra income.
    Looking at doing a trademe add myself, rather than an agency, and putting up the old tenancy agreement.

    But because all my rentals in south Auckland are leased to social housing providers.
    I haven't kept up with the rules around short term rentals.

    Has this been outlawed ???
    Are you able to advertise as short term rental, minimum 6 months, open ended, at a cheaper rate, and then advise in due course the tenancy is at an end.
    From what I have read, could this be impossible now.

    It is already on the market, so if its sold, I can pass tenants on to new buyer.
    But if they want vacant possession, how long is settlement out, is it 6 weeks ???

    The house has a heat pump, good solid house, but is 1948 so may need some top up insulation (LOL, when NZ is back on its feet).
    So in that regard, I am wanting to encourage people to rent it with these good points:

    1. Smokers okay
    2. Dogs okay
    3. One week bond, and 2 weeks in advance.

    What does everyone think.

  • #2
    Only one weeks bond?
    Can't interrupt fixed tenancy with vacant posession.
    And if the new law gets in and the tenant refuses to leave?


    • #3
      I don't believe short term tenancies have been outlawed. This would truly be insane, given short term tenancies are mutually desirous in some circumstances.

      Expected laws will result in fixed term tenancies automatically converting to periodic unless both parties explicitly agree otherwise. I imagine (though have no confirmation) that this agreement can be in writing at the commencement of the tenancy. This would be the most sensible application of this law change.

      Either way though, if the new law gets in, fixed tenancies will become periodic, but you are still able to terminate a periodic tenancy in event of a sale. I believe the notice period of 42 days is remaining in such a case, have not read anything to the contrary.

      In your case I would suggest putting a six month fixed term tenancy in place, allowing it to convert to periodic, and then issuing the 42 days when it's sold if the purchaser wants vacant possession.

      You're crazy to take less than 4 weeks bond, given the risks to landlords in our current political and economic environment.

      Watch for GST issues, if you're registered with respect to the development.
      AAT Accounting Services - Property Specialist - [email protected]
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      • #4
        My understanding is the notice would be 90 days.


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        • #5
          Thanks guys, found a great tenant who will work with me on the property, six months fixed period then goes into periodic, no open homes but sign still up and agent can view.
          They will do a bit of work on the house and I will pay for the materials, as cant get tradesmen in obviously.
          In these crazy times we all need to start thinking outside the square on what strategies we need to apply to get through.
          A lot of business and also people I know, going to struggle big time or possibly go under.

          On positive side, in 6 months when we can tour NZ, and tourists are still banned.
          Should be a lot of fancy hotels all around NZ most beautiful places, that are incredibly cheap to visit.
          But probably on to their new owner as todays owner possibly gone under.


          • #6
            How is your new tenant going to relocate, given the lock-down restrictions?


            • #7
              Originally posted by Perry View Post
              How is your new tenant going to relocate, given the lock-down restrictions?

              A PM told me that horse floats are the new tool for household relocation. Move as a bubble and all is good.


              • #8
                What a nag.

                So a rental removal truck would do? Or not do?


                • #9
                  Originally posted by Perry View Post

                  So a rental removal truck would do? Or not do?

                  Most folk don't have the heavy vehicle licence needed to lawfully drive a removal truck Perry.


                  • #10
                    True, for the big 'uns; but there are modest short-wheel-base 'trucks' that only require a car licence. They will take an average house lot of 'stuff.' I know from experience. (Even though I have a licence for the big 'uns.)

                    The point is - what a farce. I Internet-ordered six-of-something last week. I was told that only three per order was allowed. So I place two orders for three items, each. Done! All six are on their way.
                    Last edited by Perry; 05-04-2020, 07:25 PM.