5 Things About Property Management That You May Not Know

25/08/2020
  1. In New Zealand, you don’t need any qualifications to become a property manager. Although, there is a property management paper that you can study to up skill and in future this will be mandatory. Other qualifications, such as papers in real estate or business can also be helpful in property management but are not essential.
  2. How much time is spent out of office hours doing property management. Property management is around the clock. We communicate with owners world wide so there are time differences, enquiries about properties all hours of the day, urgent maintenance call outs etc. Please be mindful if we don’t respond straight away as chances are you won’t be the only person trying to contact us.
  3. There are different ways to maximise rent other than market gains. This can be as simple as offering a chattel or a service to a tenant such as lawn mowing or providing a mower. Cosmetically improving the appearance of the property can also contribute towards maximising rent. This may be a fresh coat of paint or new carpet throughout. Small changes can make a big difference.
  4. The process of organising maintenance. When we are asked to organise maintenance by both owners and tenants it can be a difficult process. We send work orders to our suppliers as soon as we can and from there it is out of our control when the job is completed. Asking for quotes can also take longer as the quote then needs to be approved before the work can go ahead. When work is urgent we try our best to get it organised and completed for you ASAP.
  5. Behind the scenes of rentals. When rentals become available both tenanted and untenanted there is a lot that goes on behind the scenes. From advertising, arranging viewings, responding to every enquiry, doing the necessary checks on tenants etc. This can also result in a lot of time wasted when people enquire for viewings but don’t turn up. Please we ask that if you have enquired about a viewing but are no longer interested, let us know.

Go To Online Resources For Property Management

18/08/2020

For both tenants and owners, there are a number of online resources available to answer any of your rental questions.

Tenancy Services- www.tenancy.govt.nz is the number one online resource for both owners and tenants in New Zealand. Most questions have been covered on their website regarding tenancies through to disputes. You can also find any forms required such as bond forms or template tenancy agreements. If you cannot find the answer to your question on their website they are also available via phone or email.

Landlords for Kiwi Property Investors- landlords.co.nz covers all things relating to real estate and property management in New Zealand. It is a good online resource for owners, to get information on law changes, insurance or market updates.

Consumer NZ- when searching tenancy on consumer.org.nz they have a number of articles around tenancy rights when renting, landlord expectations and regulations etc. This website could be helpful for both owners and tenants.

If for any reason, none of the above resources are helpful feel free to give us a call and we will do our best to answer any questions you may have!

Everything You Need To Know About Property Management

11/08/2020

The who, what, when and why’s of Property Management.

Who can be a Property Manager?

Although, there are no specific qualifications required to become a property manager there are some useful ones. These include a certificate in real estate, certificate in residential property management or a bachelors in property. Skills are more important in a property management role to ensure you can communicate with all types of people. Some important skills include honesty, reliability, good listening and writing skills, being able to mediate and negotiate, good organisation and good judgment.

What is a Property Manager/ Property Management?

A property manager is someone that is hired to oversee the day-to-day management of investment properties. Responsibilities include organizing repairs and maintenance, ensuring rent is paid on time, all communication with tenants and routine inspections just to name a few. Property managers act on behalf of the owner to preserve the value of the property while generating income.

When and why is Property Management needed?

Property Management is used when owners are unable to put the time and effort needed into their investment properties. Managing rental properties can be a very time consuming task and some owners have larger portfolios which require more time and attention. Others may be leaving town or the country and cannot simply manage their property(s) themselves.

Exciting News!

04/08/2020

We are now in our new office space at 61 Leet Street. Yes, that’s the same address as before but we are now on the bottom floor at the right end of the building. With the new sign writing you won’t be able to miss us.

If you’re ever in the area or have any property management related questions feel free to come in for a chat!

Street View
Main Office Area
Main Office Area
Tony’s Office

So You’ve Bought An Investment Property.. Now What?

28/07/2020

Investing in property is a great way to generate a return and has two types of potential returns. The first being from rent paid by tenants and the second is the property increasing in value, called capital gain. Rentals can provide regular income while maximizing capital through leverage. Rent should rise over time whilst debt decreases.

First things first, get a pre-purchase rental assessment done before investing. For a small fee you can get the opinion of an expert who will point out the strengths and weaknesses of your investment. This will determine if the property you want to purchase will do well in the rental market and why.

The thought has probably crossed your mind to self manage. Cash flow properties can be hard to come by nowadays so saving money on management probably seems reasonable. However, property managers can be an essential part of helping you generate return. They can educate you on ways to improve the property in order to achieve more rent or problems to steer clear of. Property management is a tax-deductible expense therefore, you could save on income tax by hiring a property manager all while utilizing their expert knowledge in order to generate more return. Property management is a great way to enjoy the benefits of owning a rental without the stress and worry.

Purchasing your first or even your fourth investment property may seem like a great idea. However, always ensure you have done your research and had experts look into it for you before committing. Rentals can be costly but they can also be a great source of return.

Inside a T And T Property Management Inspection Report

21/07/2020
A sample routine and full inspection report

Inspections are a very important part of our job and when owning an investment property. For owners, these are usually required for insurance purposes, at least every three months.

Above is a snippet of what our routine and full inspection reports can look like. There are a number of features for each room in the property, all of which have a status to represent their condition. The comments section is where we describe any damage or additional information about the feature. Such as the brand of a chattel or a dent in the wall etc. Along with the written section of the inspection report we take photos of each room and closeups of any damage. We aim to take at least 10 pictures per room to ensure the owner has a full scope of the current condition of the property.

Routine inspections are a good way to monitor how the property is being maintained and to get on top of any issues before they become worse. Inspections also allow tenants to notify us of any wear and tear that needs rectified before it worsens.

Full inspections are done at the beginning and end of a tenancy. These are more thorough and in depth. They will note any existing or new damage or wear and tear to the property. The move in inspection report is used as a reference for the exit inspection to determine if any damage or wear and tear was existing or happened during the tenancy.

If you are a current owner or tenant or an owner looking into our services and have any questions regarding our inspections, please don’t hesitate to get in touch, we’d be happy to help!

How To Get The Most Out Of Your Rental Property

14/07/2020

There are a number of ways you can maximize profit from your investment property. Sometimes this involves spending money to make money. Below are some suggestions that we believe will add value to your property and in turn achieve higher rent.

  • Don’t initially set rent too low- rent can always be lowered but it can’t be increased for at least 6 months after signing up a new tenancy. Aim high initially and if there is little interest then there is the option to reduce the rent.
  • Improve the appearance of the property- the way your property looks cosmetically will play a big role in tenanting and achieving top rent. A fresh coat of paint, new carpet and new kitchen or bathroom are popular features for prospective tenants. Modern, renovated properties always tenant faster than dated homes.
  • Good quality advertising- good quality advertising is essential in the tenanting process. Clearer pictures help to show prospective tenants exactly what the condition of the property is. Angles and lighting are also very important in making rooms appear larger and brighter.
  • Make sure the house is appealing for viewings– if a property is dirty or cluttered it is hard for prospective tenants to imagine it otherwise. A clean and organised home is always more appealing for viewings.
  • Sell the property not just show– during viewings make sure to boast the property and sell all of it’s best features. Features that aren’t noticeable to viewers such as how warm the property is or how sunny the rooms are.
  • Screen tenants– tenanting houses with suitable tenants is important when it comes to generating return. Tenants that pay rent on time, maintain the property to a reasonable standard and cause minimal to no damage and have done so in the past are key. It is crucial to screen tenants and do the appropriate checks to ensure your investment is being let to reliable and trustworthy people.
  • Take advantage of rent increases at the end of tenancies and every 6 months- market rent is always changing therefore, staying on top of these changes is a good way to get the most out of your rental. When a new tenancy begins or every 90 days the rent for rentals can be evaluated and increased.
  • Allow pets– allowing pets may be a daunting thought, but for rentals these properties usually generate the most interest. Animals can also be reference checked to ensure they will cause no damage to the property.

Terms Everyone In The Property Management Industry Should Know

23/06/2020

There is more to property management than what meets the eye. Below is a list of common terms related to property management that everyone in the industry should know.

Arrears- outstanding debt owed by tenants, can be in the form of rent or invoices.

Bonds– a security deposit held at the beginning of a tenancy to cover any damage or arrears that may occur during the tenancy. Bonds need to be lodged with the tenancy services at the start of the tenancy and will be released at the end if everything is fine.

Fixed Term Tenancy– a fixed period that a tenant has opted to occupy the property for.

Periodic Tenancy– a lease that has no end date and continues until the owner or tenant give notice to vacate.

Rent in Advance– rent in advance comes into effect at the beginning of a tenancy usually to cover the first one or two weeks.

Residential Tenancies Act– first and foremost this is a term that all property managers should know. The act protects tenants and landlords in New Zealand and is very important to follow in property management.

Subletting– when a tenant rents the property to a third party tenant for a period of their tenancy agreement.

Tenancy Services– for any rental related queries the tenancy services website or helpline is a good place to start.

Tenancy Tribunal– helps solve issues between tenants and landlords that can’t be solved by yourself. They work as a mediator to come to a resolution.

Property Management Explained in Less Than 150 Words

23/04/2020

For us, property management is the overseeing of residential properties on behalf of another party or entity.

We act on behalf of the owner to:

  • Make contact with tenants
  • Arrange maintenance and repairs
  • Preserve the value of the property
  • Ensure the property generates the income it deserves
  • Complete routine inspections for insurance
  • Market the property

We look after the day to day management of rentals so you don’t have to!

Summary of the changes made to the Residential Tenancies Act during Covid-19

09/04/2020

Freeze on rent increases – the prime minister has announced a freeze on all rent increases for the next six months as of 23 March 2020. This includes rent increases that had already been issued but would come into effect during the six month period, these notices are now void. 

Moving into a new rental property – if you have already given notice to leave your current rental you are now able to withdraw that notice. You should consider staying in your current property if possible. However, as a tenant you retain rights under the Act, this means that you can move if you wish but you have to follow the Ministry of Health guidelines and the Alert System when doing so, such as not getting any outside assistance. 

Paying two sets of rent when a new lease has been signed – if your new tenancy was to be periodic, you can give 21 days’ notice on it. You may have to pay two sets of rent during this time but you should try and come to an arrangement with the landlord. If the tenancy was to be fixed term, you should try to come to an arrangement with the landlord. It is encouraged that landlords be flexible and considerate during these times. 
If no arrangement can be made you can apply to the Tribunal under the grounds of unforeseen hardship to reduce the term of tenancy.

Does a rent freeze mean tenant’s don’t have to pay rent – tenants are still required to meet all rental requirements outlined in their tenancy agreements to the best of their abilities, this includes paying rent.

Freeze on vacate notices – landlords are not able to end tenancies during the lock down period, regardless of when the notice was provided except for very limited circumstances. In order to end a tenancy both parties need to agree or circumstances where a tenant has substantially damaged the property, assaults or threatens the landlord, their family or neighbours, abandons the property, engages in significant antisocial behaviour such as harassment or is 60 days behind in rent. 

If you have any other questions regarding the changes made to the Residential Tenancies Act please don’t hesitate to get in touch with us and we’d be happy to answer them for you.