As this must be making many landlords nervous, especially as much of the news coverage has contrasted landlords’ financial concerns against tenants suffering health.
So what are your options as landlord of a typical New Zealand property facing the financial costs of renovating?
Renovating your property will introduce pressure to raise the rent to cover the investment. But before weighing up the costs of renovating, landlord’s need to be aware that there is a significant, hidden cost to the ‘do nothing’ approach.
If your tenants are unable, physically or financially, to maintain a reasonable temperature in your property during winters, then the value of your asset is declining every year with structural and cosmetic damage resulting from moisture and condensation. Much of this damage may not even be visible as it’s occurring within the walls.
So when you consider the cost of renovating, remember to add the benefit of improved durability of your property assets.