April opened as a game-changing month for property investors and the broader Ray White Property Management network, as market conditions have shifted fast, and new opportunities highlight that those making strategic changes now stand to gain the most.
Ray White New Zealand’ s Head of Property Management, Zac Snelling, says that in just the first four months of 2025, landlords have navigated two waves of tenancy law changes, enjoyed a sharp drop in borrowing costs, and welcomed the full reinstatement of interest deductibility.
“ At the same time, Reserve Bank( RBNZ) data shows mortgage lending and refinancing activity at record highs – proof that property owners and investors are wasting no time positioning themselves to maximise cashflow in an improving economy.
“ As tax, legislation and compliance hurdles give way to stronger incentive for private rental investment, our Ray White Property Management team has something extra up its sleeve this April, too.”
“ As tax, legislation and compliance hurdles give way to stronger incentives for private rental investment, our Ray White Property Management team has something extra up its sleeve this April, too.”
Zac Snelling Head of Property Management Ray White New Zealand
RETHINKING RENTALS
New Zealand’ s rental market has experienced significant change in the last 12 months, with an increase in listings and, consequently, tenant choice.
“ Year-on-year, and depending where in the country you are, stock levels are up roughly 25-30 per cent, which ultimately gives tenants the heightened luxury of time in making their letting decisions,” Snelling says.
“ In the current market, landlords must be both proactive and flexible in their leasing strategies to help minimise vacancy periods and secure quality tenants.”
While more properties are currently available on the market for rent, Snelling says average rental rates for residential properties across the country have increased by five per cent year on year – making for confusing analysis of recent rental data.
“ This isn’ t necessarily a sign of market growth, but likely the long tail of historic rental pressure, which highlights the need for property owners to employ correct pricing strategies.”
LEGISLATION REINFORCES KEY PRINCIPLES
The latest amendments to the Residential Tenancies Act( RTA) took effect in January, with further amendments introduced on 20 March.
While the latest changes may seem minor, Snelling says they reinforce key principles for landlords and introduce new compliance risks. Noteworthy updates include *:
• No-smoking clauses: These are now enforceable under conditions via the Tenancy Tribunal. Landlords should ensure their tenancy agreements are updated accordingly.
• Stronger protections for family violence victims: Tenants can now exit leases more quickly under these circumstances.
• Rent reduction orders are now capped at 12 months, adding more certainty for landlords.
• No-hearing dispute resolutions: Certain cases can now be resolved based solely on submitted documentation. This makes thorough record-keeping essential.
• Digital communications: Serving notices via instant messaging is now possible under specific criteria. Missteps in communication can lead to disputes, so landlords must tread carefully.
• Email maintenance: Parties to a tenancy agreement must retain an active email address for two years after the tenancy ends.
• Tribunal decision limits: Capped at $ 100,000 per tenancy decision, reinforcing the importance of wellprepared legal and financial strategies.
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