Maximising Profits: Landlord Financial Guide

Whether you own one investment property or multiple, various financial factors can influence the return on your investment and its long-term viability. 

It’s essential for all landlords to understand these factors to ensure their investment performs optimally and to make informed decisions about their property investment future. 

Landlords now face an ever-changing landscape of lending rules, loan-to-value ratios, interest deductibility changes, and more. In this environment, professional advice and experience are more valuable than ever. This guidance can come from various professionals, including accountants, mortgage brokers, or financial advisors. 

This guide aims to provide an overview of the key factors that can impact financial performance in the residential property investment market and to emphasise when landlords should seek professional advice.

Investment Guide Chapters

Switching to Ray White

Looking to experience the Ray White property management difference?

We can help whether you’re currently managing a property yourself or already have another company managing your property.

It’s natural that there can be some discomfort involved with changing agencies, which is why we have tools in place to help manage the process for you on your behalf – the first step is simply getting in touch with us.

Airbnb vs Long Term Rentals in Tauranga and the Bay Of Plenty

Airbnb and similar platforms can be seen by some landlords as an alternative option to obtain income through their investment property rather than a more traditional residential tenancy. Before considering this route of income generation, landlords must ensure they are aware of the tax implications that are possible, and that these may vary betweenregions.

If you are weighing the pros and cons of short-term accommodation versus long-term tenancies as the primary income method for your investment property, these implications warrant your investigation.

Many councils across New Zealand are considering or have already implemented new rates specifically for property owners who utilise Airbnb. For instance, properties under the jurisdiction of the Auckland Council have experienced significant rate increases when used for Airbnb purposes, which can erase the profits gained from this short-term accommodation method of generating income.

While renting a property on Airbnb may seem straightforward, it is equally easy for the IRD and local council to monitor your activities in this area.

GST Registration Requirements

Unlike long-term residential accommodation, short-term accommodation is a taxable supply for GST purposes, and landlords should be aware that once the property falls into the GST net, there will be tax implications.

A property will fall into the GST net if:

• Short-term rental income from

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