Rental house of horrors

Unwary landlords can find themselves caught up in a host of financial complications and be burned when they discover the cost of owning a rental property.

Property tax expert Mark Withers is warning the new wave of "accidental" or "reluctant" landlords - homeowners renting out their properties because they can't sell for an acceptable price - to beware of traps.

If things aren't set up properly, tax deductions can be disallowed.

Property manager Mark Claridge of Quinovic says there has been a "huge increase" in private landlord numbers as homeowners have tried and failed to quit their properties in the slumping market. Those moving to Australia also swell the "reluctant landlord" ranks, Property Investors Federation president Martin Evans says.

To read the full NZ Herald story click here

Posted: 28 Dec 2008

News articles