Legislation has been passed confirming a permanent exclusion for new and existing build-to-rent developments from the interest limitation rules. Build-to-rent properties are medium-to-large scale, multi-unit residential housing developments that are built to provide long-term rental accommodation.
10-year fixed-term tenancy offer
Landlords must offer a 10-year fixed-term (or more) tenancy agreement for a build-to-rent property. Tenants are not required to accept the 10-year fixed-term tenancy and can negotiate a shorter fixed-term or a periodic tenancy. Only tenants that agree to a 10-year build-to-rent tenancy can terminate the tenancy with 56 days’ notice.
Eligibility for exclusion
To be eligible for exclusion from the interest limitation rules, a property must meet the requirements as outlined in the Income Tax Act 2007.
Harcourts encourages all landlords to rush out and build 20 or more new dwellings on a single block each ☺, however if this isn’t within your capabilities (wouldn’t it be great if it was?), but you are looking to increase your investment portfolio, contact your Harcourts property manager who can put you in touch with one of our highly skilled sales consultants.Read more on build-to-rent and the permanent exclusion from the interest limitation rules: https://www.tenancy.govt.nz/starting-a-tenancy/types-oftenancies/build-to-rent-tenancy/