FAKE News? Even the Rental Market isn’t Immune

Do you believe everything you read about the Auckland rental property market?  It might be correct, but could be out of date, incorrect, or even worse – it could be fake news!
 
We have all seen the attention-grabbing headlines.  Here are some recent samples:
  • Landlords worried as government moves on compulsory heating in rental properties
  • It was like being in a coffin – Aucklander shares experience renting in NZ’s most expensive city
  • Landlords welcome new meth report: money on problem that doesn’t exist
  • Property predictions for 2018
  • Meth-testing in homes – don’t bother
  • Rental home heating regulations should be in force
  • $1.3 million spent on meth clean up in state houses – just $3,000 on mould
  • What’s squeezing the life out of New Zealand’s rental market?
  • Landlords reveal why your rent is rising
  • Buying property for the short-term rental market
So how do you sort out what might be accurate or truthful, and what might apply to your own situation?
 
For example:
  • Did you know the rental market slows down at certain times of the year?  This affects the time it takes to rent properties and rental returns. It can vary from city to city.
  • Do you know what the rental market is doing right now, suburb by suburb, or city by city?
  • Are queues of prospective tenants a myth or reality for Auckland? Or does tenant interest vary according to location, and the type of property you are trying to rent?
  • Do you know about legislative changes affecting rental properties that come into law on 4 April 2018?
  • Do you know about changes to the law for rental properties that will be compulsory from 1 July 2019?
  • Do you know what these new laws are and how they apply?  Or are you relying on what’s been speculated in, or even relatively ignored by the media?  Do you understand how these changes will affect you and your property?
  • Are you aware of what a PCBU is, and how this affects you and your rental property?  Landlords, property managers and tenants all have obligations to discharge as PCBUs. (A person conducting a business or undertaking).
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By not knowing, you risk significant fines for non-compliance.  With the correct information you can significantly enhance your returns or find great tenants quicker.
 
Get in touch with the experts in Auckland property management.  Quinovic Property Management specialises in managing residential rental properties.  We have been managing properties for over 30 years and know the rental market inside and out.  It’s all we do.   With a nationwide network of 34 offices, 180+ staff, an in-house property lawyer, and thousands of properties under management – you can see why.
 

Our Free Offer to You

At Quinovic Parnell we are offering to give you free, up to date, accurate, informed and customised information;  relevant to you.  If there are enough people wanting the same information, we will publish the questions and answers.
 
Follow the link below to get in touch with Quinovic Property Management Parnell, Auckland:
 

Are You Thinking of Buying an Investment Property?

Even if you are a seasoned property investor, but especially if you are relatively new to property investment, our advice is to “get advice”.

There’s much to consider:
  • Is it a good investment for me? Do the numbers work?
  • Do I know all I need to know about the property from a legal perspective?
  • What sort of rental return can I expect?
  • What improvements can I make to increase the value of the investment?
  • What type of features appeal to tenants; what are they looking for?
Here are a few tips that might help your decision making.

 

Bedrooms
The number of bedrooms is generally the first factor in determining how much a property will rent for. The bedrooms, the greater the rental income potential. Bedroom size is also important – they should all be big enough to accommodate a double or queen-sized bed.

 

Living Areas
The number of living rooms should be in proportion to the number of bedrooms. Usually, if there are four or more bedrooms, there should be more than one living area. Living areas are areas used for general living, ie – a space that can fit a couch, coffee table and TV. They also need to be far enough apart so that noise isn’t an issue. For instance, a house that has a combined lounge/dining upstairs and a rumpus room downstairs is considered to have two living areas.

 

Kitchens and Bathrooms
New or renovated kitchens and bathrooms are more appealing to tenants and “sell” rental properties. They also help maximise the sales price of properties when sold. Like bedrooms, the number of bathrooms can also influence the rental return.

 

Outdoor Living Area
Properties with an outdoor living area are easier to rent than those without any outside options.  Ideally, there should be enough space for a barbecue and seating for 4 to 8 people.  Yet anything is usually better than nothing.
Grounds should be low-maintenance and well maintained in the front and back. Consider the cost of lawn and garden maintenance and who you think should be responsible – you or your tenants.

 

Rental Property Investment

Presentation:
Properties that need repairs and maintenance aren’t appealing to tenants.  Property presentation is also a very important consideration.  As the property owner, home maintenance inside and outside is your responsibility, not your tenants.  It makes economic sense to ensure your property is presented in the best possible way.

At Quinovic Property Management over the past 30 years we’ve learned a lot about rental properties. We’ve helped residential property investors maximise the potential of their rental assets.

 Are you looking for independent, honest advice based on experience and knowledge?
Get in touch with Quinovic Property Management Parnell by clicking on the link below:

Residential Property Owners Need Protecting Too

How protected are you as an owner of a rental property?
The government has signalled we are about to see changes in residential tenancy legislation. This includes banning letting fees paid by tenants.  There is still very little legislative protection for owners of rental properties.
This lack of protection was evident recently.  The NZ Herald reported the company owned and run by Auckland property manager David Sharma, operating under Ray White Henderson, owed 67 landlords more than $350,000 in unpaid rents The number of landlords owed money by Sharma has since increased and is now confirmed as being 72 and growing.
 
The liquidators reported that most rental payments owed to rental property owners dated to January and February of this year.  There were no company assets available for immediate recovery.  The company’s bank accounts were overdrawn.  The chances of any of these property owners seeing their overdue rental monies anytime soon is pretty non-existent.
 
So how was this allowed to happen?  Aren’t there legislation and rules to prevent these sorts of things from occurring?
 
Unfortunately, the answer is ‘no’.  Up until 2008, property management was an activity for which a real estate licence was required and overseen by the Real Estate Institute.  Yet when the Real Estate Agents Act came into effect, a real estate licence was no longer required.   This very low barrier for entry meant a lot of new people entered the industry, cutting corners and service delivery.
 
Why aren’t the rental monies at least deposited into a trust account? Again, because it’s not mandatory for property managers to operate one.
 
It is a question every rental property owner should ask their property managers. It’s not only the smaller players who don’t run trust acounts for rental monies. Sharma is a good example of this. Although his business traded as Property Management Out West Ltd, it was under the branding of Ray White Henderson.
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At Quinovic Property Management, we view a trust account as imperative.  It protects our owners’ money and the integrity of our property management services.  All our rental monies come into a centralised trust account.  Then they get disbursed directly and automatically to our rental property owners.  This system means no rental monies are received or controlled by our individual branches.
 
At Quinovic Property Management Parnell, we ensure investment properties are professionally managed to the highest standard.  We can also give you peace of mind, knowing your rental income is protected.  We assist Auckland rental property owners put plans and strategies in place.
 
Have your Auckland rental property managed by Parnell’s property management experts.  Discover how much your rental property could be earning with a rental appraisal.  Follow the link below to complete our online form:

Some Facts About Meth Testing of Rental Properties

Methamphetamine and other drugs are becoming an increasing problem for rental properties.  Alarmed?  We explain why you shouldn’t be.

Quinovic Property Management Parnell has a policy in place to help manage this threat on behalf of rental property owners.

Why you should test for methamphetamine before each tenancy

  1. We test 2 to 4 days before a tenancy starts.  This creates a baseline for future tests.
  2. It is the landlord’s responsibility to provide a clean, tidy and safe home for their tenants.  Completing the test meets tenancy law requirements.
  3. If you fail to test before a tenancy, you could find it difficult to prove contamination was due to the current tenant.
  4. The rental property becomes uninhabitable if contamination is found during a tenancy. The tenancy must end immediately.
  5. As a landlord, you are not responsible to supply alternative accommodation. It’s always good to help if you can.
  6. If a tenant can prove the rental property was contaminated before their arrival, they may apply to the Tenancy Tribunal for a refund of all rent paid. This has occurred more than once in New Zealand.
We don’t wish to frighten anyone off from being a landlord. Engage the professional services of Quinovic Property Management Parnell today. We will ensure you meet your legal responsibilities.
Follow the link below and get in touch with Kerry Kirwan to discuss us managing your Auckland rental property:

Tips for Renting Your Property

That Will Save You from Disaster

We’ve put together some tips when you’re renting your property to tenants.

Reference Check

Always ask prospective tenants for references and always call their referees.  If you rely on your own assessment of prospective tenants, this can lead to problems down the track.

Credit Check

Referees may be reluctant to make negative comments about a colleague or friend.  It is vital that you also carry out a credit check on prospective tenants.  Most debt collecting agencies can conduct credit checks.  You need to ensure you get the tenant’s permission first.

Tenant Check

To name a few, the following should be undertaken:

  • Background checks
  • Social media
  • Police
  • Credit
  • Verification of ID

A professional property management company will undertake these and more on your behalf.  Remember to get written permission from tenants first.

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Outline Expectations in the Tenancy Agreement

The tenancy agreement is the place to outline what you expect from your tenants.  It must clearly state if there are to be no pets, parties or smoking, the maximum number of occupants, and so on.  Failure to make specific conditions clear can lead to dispute.  If the matter goes to the Tenancy Tribunal, an unclear agreement puts you in a precarious position.  Neither party can sign away their rights under the Residential Tenancies Act.  Even if both parties agree to a clause at the time of signing a tenancy agreement, this clause may not be upheld if a dispute is taken to the Tenancy Tribunal.

Opt for a Fixed-Term Tenancy Over a Periodic Tenancy

You may find a good tenant who is going to pay the rent and look after your property.  If you sign them up for a periodic tenancy instead of a fixed term tenancy, they could give 21 days’ notice and leave.  This gives you very little time to find a new tenant, and it could cost you in lost rent.

A fixed term tenancy enables you to find new tenants before the current tenants move out.  This could potentially save you thousands of dollars.  It also enables you to protect against the property becoming vacant at a time of year when tenanting could be difficult, ie – November/December or mid-winter.

Take the Maximum Possible Bond

Many private landlords feel that no bond, or only two weeks bond is necessary.  It’s very easy for a property to be damaged, which could leave the owner out of pocket.  Tenants are given the right to live in an asset worth hundreds of thousands of dollars.  It is advisable to insist on taking the maximum bond possible of four weeks.

Lodge the Bond with the Department of Building and Housing

Always lodge the bond.  Not lodging the bond with the Department of Building and Housing is illegal.  If a tenant takes you to the Tenancy Tribunal, could be a fine for you of up to $1,000.  The actual amount is at the discretion of the adjudicator.  You could lose many hours dealing with the tenants and attending the hearing.

Talk to Kerry Kirwan about Quinovic Parnell managing your rental property:

Quinovic Property Management Parnell

Are You a Reluctant Landlord?

You marketed your home for sale, it didn’t sell at your price – now you want to move on

Auckland property sales appear to have slowed.  At Quinovic Parnell  we are seeing frustrated vendors turning to the rental market when their property hasn’t sold for the expected price.

Many of these property owners are frustrated and disappointed.  They have gone through the sales process, and the effort required – both physically and emotionally.  Often they have moved on in their minds from owning the property and are having to rethink what to do.  They may have already purchased another property, and visualise being there.

Can you fully embrace an entirely new way of thinking from home owner to property investor, and treat it like a business?  You could rent your home out until the Auckland property market supports a good sale.

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Perhaps you have decided to go ahead and become a landlord.  Our professional experience and expertise in residential rental property is critical to making sure you get things right.

Here are some of the things that anyone considering becoming a landlord needs to think about.  All good reasons to have experts who deal with these each day do the work for you:

  • Your legal obligations
  • Letting, tenant screening, acceptance, bond collection and lodgement
  • Professional distance when managing the relationship with tenants
  • Rent collection
  • Repairs and maintenance
  • Rental appraisal and rent increases
  • Regular inspections
  • Advertising and marketing
  • Record keeping

Do you have the time to deal with situations when they arise?  We do!  We have the time and the experience to do the important things that ensure the best care of your property, and the best return.

Get in touch with Kerry Kirwan today to discuss us managing your property:

  • P:  09 373 4353
  • M:  0220 108 005

Why use a professional property manager for your rental properties?

Quinovic Parnell AucklandWith so many New Zealand landlords wanting to rent out their own rental properties we’d like to share a few of our property rental experiences with you.

Why should you use a property manager?

With our experienced property rentals team and proven monitored property management systems, we have the knowledge to avoid potential rental problems and minimise any potential tenancy downtime and expense to you as the property investor. At Quinovic Property Management Parnell, rental property management is our business. The team at Quinovic Parnell is well reputed in the Auckland property market. Almost all of our business is generated by referral from happy landlords.

Are you receiving up to date market rental?  
We are able to ensure you are receiving the best possible rent in today’s rental market; we have a strong reputation for improving the performance of your real estate assets and rental portfolio by reviewing your weekly rent scope regularly.
Our property managers ensure we get the very best of tenants for your property hence avoiding ongoing problems.

Quinovic Parnell Rental Properties Team are available 24/7 for those late night and early morning calls from tenants with problems leaving you to focus on your core business, and day to day life.

For more information or to talk to one of our Property Managers today, please get in touch with Kerry Kirwan today on 0220 108 005.