Property investors say they are being left out of pocket, ignored by measures intended to help support the rest of the New Zealand economy.

As part of its response to the Covid-19 disruption, the Government has imposed a rent freeze on the market for at least the next six months. Landlords who try to raise rents in that time face a $6500 fine.

Tenants will also not be able to be evicted during the lockdown period unless both parties agree, or in limited circumstance - such as when a tenant is more than 60 days late with rent. Prime Minister Jacinda Ardern has said she wants the names of landlords breaking the rules.

Tenants who had previously been told to leave – or who had given notice – can stay. But tenants can terminate their tenancies if they wish.

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Housing Minister Megan Woods said it was not giving tenants a free pass for bad behaviour.

"It is not acceptable for tenants to abuse the current situation by refusing to pay rent when they have the capacity to do so, causing significant property damage, or significant anti-social behaviour. Tenants are still fully liable for their rent payments and any damage as we ensure that landlords do not increase the burden on tenants."

But landlords say they are being called on to provide social welfare services without benefiting from any Government support.

New Zealand Property Investors Federation chief executive Sharon Cullwick said a rent freeze was appropriate, and it was right that tenants should not be forced to leave during a lockdown.

SUPPLIED Hawkes Bay landlord Sharon Cullwick

But there was no protection for landlords.

"Tenants can give notice and vacate the property during this time if they wish to do thus leaving the landlord with no income and ongoing costs. Also it could be difficult to obtain another tenant as rental viewings are not considered an essential service."

She said many landlords had sent notices to tenants about upcoming rent increases earlier in the year to cover the cost of improving their houses to Healthy Homes standards – but now those increases would have to be put on hold.

"The penalties on landlords are enormous and uncalled for. We should also point out that during this time the bills still have to be paid by someone, whether that be a landlord or a tenant."

A mortgage holiday is being offered by banks to borrowers who struggle to pay their loans but interest still accrues through this period.

"We understand that many people are really hurting at this time," Cullwick said.

"Some of these people are landlords who have always tried to supply good quality housing for their tenants. We would like the Government to consider housing as an essential service and to include landlords in the measures to ease the current difficulties rather than just talking about heavy penalties."

Landlords generally do not qualify for the wage subsidy scheme offered by Government to other businesses. A spokesman for the Ministry of Business, Innovation and Employment said they could if they paid themselves wages and experienced a drop in income. But Cullwick said most landlords had a small portfolio and did not earn enough to pay themselves. "I might know a dozen people who pay themselves a wage."

One investor, Chris Isherwood, came home from overseas when the Government indicated New Zealanders should.

But he had nowhere to live because he now could not ask a tenant to leave.

He was worried he could end up with no income if tenants chose not to pay.

"I have not had any need for welfare in the past and have diligently worked my business over the last 17 years into a position where I can live independently, without need of handouts and freed up my full-time job for another person. I have not been a burden to the health system and keep myself fit and healthy.

"Until I put my business into management a few years ago, I had built up good relationships with tenants being a fair and caring landlord

"I know this is a tough time for everyone and I will get through it regardless. This situation is however grossly unfair to landlords that rely on their rent for income. I never miss my tax payments, however, I am not receiving any benefits from my tax. This is not good enough and fundamentally wrong. On the face of it this is a breach of my human rights, don't you think?"

Another landlord, who did not want to be named, said he had a number of properties vacant because tenants moved out before the lockdown. Others had stopped paying rent.

One tenant stuck in China was $6500 behind in rent.

"I now have to spend money going to Tenancy Tribunal to request their bond monies back but tribunals hearings are about to be suspended or there is a queue of two to four weeks for hearings. I have to store all the tenants' personal belongings at a cost until the Tenancy Tribunals allow me to dispose of their belongings and recoup those costs.

"Meanwhile I have to keep paying the bank loan and rates and insurance and body corporate fees and ground lease rent and property management fees and operating expenses of the apartment…Worst-case scenario, I will have to sell the property in a falling market or declare bankruptcy and allow the property to sell in a mortgagee sale."