Questions to consider before becoming a landlord

While the dampening effects of higher interest rates and higher tax rates as interest deductibility changes are further phased in are being felt there are positives for investors such as cheaper property prices and more properties for sale, meaning they can find one that fits their criteria.

However, residential property investment and deciding to become a landlord is a complex and time-consuming exercise.

Real estate agency Barfoot & Thompson, which sells about a third of Auckland homes, says there are some things investors should ask themselves before becoming a landlord.

1.Are you up-to-date on all regulations, legislation and laws related to rental property? As a landlord, it's important to understand the often complex legislative changes regarding rental properties, and ensure that you are kept up-to-date on these. You will need to ensure that your rental property is up to code, and make sure your paperwork and processes are in line with the law.