How do the new tax rules work for short-term rentals?
In the past, if an old place is bought for renovation or demolition, it would be rented out cheaply to keep it occupied for a year or two until consents and contracts are ready, then maybe 6 months work before the owner could move in.
I understand the short-term rental must now be less than 12 months, so the house must be left empty after that. But would the owner have to take up residence immediately to comply with bright-line rules, and then move out again during renovation?
There are so many things that used to be straightforward but now become a minefield.

masturbidder - 2021-04-02 16:02:00

Article in the Herald Online today by Troy Bowker around 'main home' changes. Paywalled. Earlier article in Stuff round similar issues.

Minefield - yep. The RTA is ridiculously complex now. Do you think this government's changes are actually designed to make landlords so confused they will sell up? Probably working, though the property management industry will flourish. And not to the advantage of tenants.

https://www.stuff.co.nz/national/politics/300260832/how-the-
government-is-changing-rules-for-renting-out-your-main-home-
and-the-brightline-test

artemis - 2021-04-02 16:10:00

Again, tenants are the losers.
Houses will stay empty while waiting for renovation instead of giving someone a budget rental for a year or so.
Maybe the house is not pretty and there is preparation work by surveyors and architects but many families appreciate the chance to live and save, even dogs are allowed sometimes.

masturbidder - 2021-04-02 16:43:00

Some of my best performing rentals were dogs

funkydunky - 2021-04-02 17:22:00

This message was deleted.

kittycatkin - 2021-04-02 19:32:00

Many empty houses could not be legally rented out because, although they are fine for owner-occupiers, they are quite unfit for tenants and would require several thousands of dollars spent to upgrade to 'Healthy Homes' standards.

Also, many older properties are constructed in such a way that it would be impossible to make them compliant. You cannot fit ABS brakes and airbags to a Morris Minor.

flyernzl - 2021-04-17 23:42:00

flyernzl wrote:

Many empty houses could not be legally rented out because, although they are fine for owner-occupiers, they are quite unfit for tenants and would require several thousands of dollars spent to upgrade to 'Healthy Homes' standards.

Also, many older properties are constructed in such a way that it would be impossible to make them compliant. You cannot fit ABS brakes and airbags to a Morris Minor.

Rubbish ! I am doing work on old homes for the Healthy home rules and can get most of them to comply . Just depends on how much the owner is willing to pay .

martin11 - 2021-04-18 08:08:00

And if it’s not physically possible, there are exemptions.

sparkychap - 2021-04-18 08:18:00

Maybe it would cost a couple of thousand, but it doesn't take long to make a couple of thousand in rent.

tygertung - 2021-04-18 08:33:00