Life as a Landlord

[Wayne]

1000 % agree Donna.
I support you right to give any opinion you want.

Wayne does owe you an apology for turning it personal, in my honest opinion.

I was just trying to debate the same thing rather than changing the subject/scope part way through.
Opin all you want.

[McDuck]

I was just trying to debate the same thing rather than changing the subject/scope part way through.
Opine all you want.

My mate,(now passed away), once told me, to "play the man not the ball".
Considering all the work that Donna puts in, don't you think its a bit rich calling her lazy?
Your actual points are interesting and valid. But its just where it wanders over to personal insult.

You're always going to get people blaming everything on the political party they don't like.
Except Perry, who hilariously blames all politicians no matter what their leanings.

Me I just blame all Humonkeys, noting the similarity between human behavior and the chimp tea parties of old.

But sure, you play the game any way you want, who am I to set the rules.

[flyernzl]

"But residential renting is not really a business"

The question of whether renting out residential accommodation constitutes a business has long been a subject of debate. It's a matter of the duration and nature of the rental. If the accommodation is leased for short periods, such as a night or a week, the commercial aspects are clear, with motels and hotels operating in accordance with standard business practices, including the addition of GST to their charges. However, the scenario changes when individuals lease out houses or flats for months or even years. Such rentals do not allow for the addition of GST to the rent and are not considered a service. Consequently, landlords are unable to claim back the GST on their inputs either.

Despite the lack of commercial considerations in residential renting, landlords are met with taxation demands by the Inland Revenue if they happen to generate a surplus from their renting activities. This contradiction places landlords in a unique position within the political spectrum.
Thus residential landlords find themselves in a twilight 'other world,' where the regular rules of commerce don't seem to apply.

On the other hand, many individuals who rent out properties do not perceive themselves as 'in business.' Some see their rental properties as inherited assets or accidental investments, merely seeking to cover costs and maintain amicable relationships with long-term tenants. However, the situation often escalates when circumstances force them to sell the property, leading to sensationalized headlines and public outcry against landlords who have seemingly acted callously towards tenants.

Nevertheless, there exists a subset of landlords who acknowledge the business nature of residential renting, whether as a part-time endeavor, supplementary to their main employment, or as a full-time occupation. These landlords prioritize property maintenance, cultivate positive relationships with tenants, stay updated on legislative changes, charge reasonable rents, and actively engage in the industry. Their approach stems not from greed or altruism but from sound business principles.

Despite this, certain political commentators emphasize the need for landlords to demonstrate compassion, suggesting that landlords, inherently deemed wealthy, bear a Christian duty to assist the less fortunate. The peculiar singling out of the accommodation business for leniency remains a perplexity, especially when similar expectations aren't placed on other essential service providers.

The peculiar position that the residential rental business holds within the social and business landscape remains an unanswered question. Whether it's the perceived right to housing, the belief in landlords' wealth, or the ease of targeting a seemingly small and politically voiceless group, the reasons are varied and complex, laced with envy and resentment.

It is often said that the best managers are those who go unnoticed until they're no longer around. Similarly, landlords, like the unsung Joe, often find their contributions taken for granted or subject to criticism and animosity. However, the potential ramifications of policies aimed at driving landlords out of the business would leave a void that social housing and other initiatives may struggle to fill, inevitably impacting society and taxpayers.

[Sanya]

"But residential renting is not really a business"

Well written.

MBIE is unequivocal. If you collect rent on a rental home, you’re running a business and there are rules you’ll need to comply with.

Long term residential rent is GST exempt. Landlords don’t collect GST on rent and don’t separately claim GST on input costs. That’s a good thing as it simplifies book keeping and reporting.

If you choose to participate in the long term residential rental business you have to accept that politically – housing is a hot potato. This means government policy is and will remain volatile and yes, even unfair.

[donna]

I’m looking forward to seeing what David Seymour can do to reduce the timeframe to full interest deductibility.

cheers

Donna

[McDuck]

"But residential renting is not really a business"

The question of whether renting out residential accommodation constitutes a business has long been a subject of debate....GST ... landlords are unable to claim back the GST.. landlords are met with taxation demands... twilight 'other world,...accidental investments,...wealthy, bear a Christian duty .. leave a void that social housing and other initiatives may struggle to fill, inevitably impacting society and taxpayers.

A lot of ideas jumbled in there.

[Engineer]

I’m looking forward to seeing what David Seymour can do to reduce the timeframe to full interest deductibility.

cheers

Donna

Im looking forward to seeing what NZ First will do. I think WP used to consult Olly Newland on things property related.

[McDuck]

"But residential renting is not really a business"

The question of whether renting out residential accommodation constitutes a...

I always ask myself the same question.

"What this guys angle?"

So...what's your angle?

Do you want to happen?

[flyernzl]

What we really want is for property investors and landlords to stop being vilified, blamed and abused, and instead to be recognised as ordinary businesspeople who are providing a necessary and valuable service for society and subject to the same regulations and taxes as any other business, no more and no less.

[donna]

^^ Yes indeed. It is what it is and it will be refreshing to have a Government who appreciates the part we play in providing rentals.

cheers
Donna

[McDuck]

What we really want is for property investors and landlords to stop being vilified, blamed and abused, and instead to be recognised as ordinary businesspeople who are providing a necessary and valuable service for society and subject to the same regulations and taxes as any other business, no more and no less.

I was hoping for a more grounded and honest reply.
Once you start using the word " WE" you become spokesman for some imaginary group.
What's your angle.
What do you want exactly?

[Perry]

What we really want is for property investors and landlords to stop being vilified, blamed and abused, and instead to be recognised as ordinary businesspeople who are providing a necessary and valuable service for society and subject to the same regulations and taxes as any other business, no more and no less.

Perhaps ask who is doing the vilification?

That might make certain things (motives) rather obvious.

[Jeffa]

You can’t win being a landlord

for the past 6 years, landlords were vilified by the previous government

0kay then , try Air bnb?

Now property owners are vilified for making money from tourism

https://sunlive.co.nz/news/337618-houselessness-vs-airbnb-in-tauranga.html

I once commented on this forum

The best way to eliminate us the gentry class is the free market

Encourage landlords, over saturate the market, this forces landlords to lower rents, but like left wing economist Bernard Hickey said..

“The New Zealand economy IS the housing market with other less important things tacked onto it like dairy or tourism etc.”

[donna]

^^ well said. Kapiti is getting 1000 homes on land on Kapiti Road - Wellington Developer Ian Cassells has applied for resource consent. That will definitely boost the local economy.

cheers

Donna