The NZ Property Investors' Federation (NZPIF) is an industry organisation representing rental property providers. We view tenants as our customers and therefore of critical importance to the rental property industry. As such, while we represent rental providers, we carefully consider the effect of policies on our tenant customers as well.
We are generally supportive of policies that enhance tenants' living conditions or solves problems they are experiencing. Realising that this usually involves higher costs, we want any new policies to address real problems both effectively and cost efficiently. This is because providing rental property is a low cashflow return investment and therefore the costs of new policies tend to put pressure on rental prices to rise. This is not in the best interest of landlords or tenants.
Private rental property providers supply the vast majority of rental properties in New Zealand and mostly provide good quality homes at rental prices lower than tenants owning the home themselves.
The NZPIF believes that the supply of rental property is essential and private owners are the most efficient providers of quality properties at a lower cost than Government, social or large institutions. Private providers tend to charge lower than market rental prices to tenants, provide a more personal service and do not have expensive management layers undertaking the many roles required in providing a rental property. They tend to accept lower returns because they are focused on long term ownership for a better standard of living in old age.
For all these reasons, we are against any new policies that make it harder and more expensive to provide rental properties, especially where there is no corresponding benefit for our tenants. We are also against policies that provide higher levels of Government funds to either state, social or institutional rental housing providers. Assistance for tenants should be based on their needs and not who their landlord is.
Economic Analysis of Rationale foro Non Deductable Interest for Residential Property Investments