Keep WOFs away from rentals: NZPIF

Property investors are calling for politicians to introduce tax deductibility for insulation and energy-efficient heating, not warrants of fitness for rental properties.

Friday, September 19th 2014, 12:00AM

by The Landlord

Many parties have campaigned in the lead-up to tomorrow's election on the need for a WOF system for rental properties.

NZPIF executive officer Andrew King said it appeared to make sense on the face of it but its unintended consequences would see tenants worse off.

He said increasing rental prices to pay for regular WOF inspections might lead to more over-crowding of rental properties.

King said Government should provide low income households with electricity vouchers over the winter months to encourage tenants to turn on their heaters, rather than implementing a WOF standard.

"Some say that cars have to have a WOF so rental properties should too. But if drivers can't afford the petrol, their warranted car isn't going to take them far,” he said.

"Many people have accused the NZPIF of not caring about tenants, but this could not be further from the truth. We just know that a WOF is not the answer to children living in cold damp homes."

King said studies had shown that Government saved $5 for every dollar spent on heating and insulation. “Obviously it makes good sense to invest Government funds into solving the problem. There is currently no tax incentive for rental property owners to insulate or install energy efficient heating. The NZPIF is seeking support for insulation and energy efficient heating to be made a tax deductible expense. This would help reduce the need for rental price increases, thereby reducing pressure on tenants and reducing upward pressure on the accommodation supplement.”

« Healthy lifestyle property market: REINZ

Free Investment Property Showcase Events: Auckland, Wellington and Christchurch »

Special Offers