Rental Market Update

Posted on May 25, 2019 by Quinovic Parnell

It has been an interesting last few months for our rental property owners. Here’s a recap for you.

Healthy Homes

The Ministry of Housing and Urban Development have finalised their standards and timeline for Healthy Homes. The next compliance deadline is set for 1 July 2021 and introduces standards for heating and ventilation, moisture, drainage and draughts. We have already started auditing our rental properties for compliance, and your property manager will be in contact with you over the next few months should your property require any modifications prior to the 2021 deadline. In the meantime, if you have any specific questions or feedback, please contact your property manager.

Compulsory Insulation in Rental Properties

The deadline of 1 July for ceiling and underfloor insulation is fast approaching. We are happy to report that because we started the process about 18 months ago, at the end of April 93% of our rental properties were compliant or had been issued with exemption certificates. As at today’s date, this has increased to 99% compliant or exempt.

This means we know exactly what insulation is present in the roof and under the floor (the two compulsory insulation areas) in 99% of our managed properties and we can meet the mandatory legal requirement to include accurate and up-to-date information about insulation in all our tenancy agreements. We think this is a fantastic result and want to thank all our owners for working with us to achieve it.

If your property is one of the few that have been assessed as being non-compliant, please contact your property manager today. Time is most definitely running out for you and your property! Don’t risk the possibility you will have to pay your tenant $4,000, which is the amount you may be fined.

Smoke Alarm Testing Programme

Our new arrangement with smoke alarm testing company SATS, who have taken over the installation, testing, servicing and management of smoke alarms in our rental properties, is now well underway. So far, we have been very happy with the quality, accuracy and responsiveness of their service delivery.

If you are one of the few owners who initially ‘opted out’ of the SATS ‘special offer’, and you have decided to assume personal liability for the annual, and between tenancy testing and maintenance of the smoke alarms in your rental properties, we would urge you to reconsider.

At the cost of just $99 per year, per property, SATS smoke alarm management and service plan will take on the legal responsibility for ensuring the smoke alarms are always functioning.

If you would like to discuss this further, please contact our Principal Mary Vinsen:
P: 09 373 4353
E: mary.vinsen@quinovic-parnell.co.nz

Meth Testing Rental Properties

Meth usage in the community continues to make news headlines. Below is a link to a NZ Herald article that appeared this month describing how New Zealanders spend nearly $1.4 million cash on methamphetamine every single day, based on police analysis of three months of drug testing of wastewater.

https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12226590

Quinovic Parnell has a zero tolerance towards illegal substances being consumed in our rental properties, and we operate an ‘opt-out’ approach to meth testing – this means we will test your property between tenancies unless you tell us not to.

If you would like to know more about our meth testing programme, please contact our Business Development Manager Kerry Kirwan:
M: 022 010 8005
E: kerry@quinovic-parnell.co.nz

Capital Gains Tax

The Prime Minister’s announcement on 17 April that none of the Tax Working Group’s capital gains tax recommendations will be adopted, came as a huge surprise to most of us.

NZ Property Investors Federation Executive Officer Andrew King describes the Government’s decision as the right decision to make. But he does note the Government is planning to target speculation and land banking and says he is concerned that there will continue to be a confusion of rental property owners with speculators.

“We hope the Government realises that they need private landlords, who provide about 85% of rental properties, and that hurting landlords will also hurt tenants at a time we have a rental crisis.”

At Quinovic we view this decision as being a very positive move for the property industry generally, and we hope it will bring a greater level of certainty to the rental property investment market going forward.

Increasing Rental Returns

Rents are continuing to rise, and over the last 12 months, within the Auckland Region the average annual increase ranged from 1.2% on the North Shore to 5.4% in Franklin.

As the chart below shows, Auckland rent increases tended to be stronger in the region’s northern and southern edges than they were in Auckland’s central and western districts. However, the overall rental growth of 2.8% between the first quarter of last year and the first quarter of this year, was well down compared to growth of 4% achieved in the previous 12 months.

Information dated 27 April and sourced from www.interest.co.nz

What does this all mean for you and your property? Quinovic Parnell actively manages the rental returns of all our managed properties to ensure they are keeping up with the rental marketplace. Under current tenancy legislation we can review rents every six months, and your property manager does this review in consultation with our Business Development Manager who is our in-house rental appraisal specialist.

Your property manager will contact you at the appropriate time with a suggested rental increase (if appropriate), but if you wish to know more about rental values specific to your property, or indeed anything else about rental pricing and rental returns, please contact Kerry Kirwan:
M: 022 010 8005
E: kerry@quinovic-parnell.co.nz

Thinking of Buying a New Rental Property?

Did you know we offer a free rental appraisal service? As a specialist in residential property management, we have no vested interest in the selling side of real estate. This means that our rental appraisals are often viewed as being more independent and accurate than those supplied by the real estate firm selling you a property. If you are in the market for a new rental investment (or if you are thinking about buying one), we can undertake an appraisal at the pre-purchase stage, before you make a final decision.
We can also help you with information on what rental property features tenants are looking for, and which ones they are willing to pay a premium for.

If you would like to know more about rental appraisals, or if you have any questions about the Auckland rental marketplace, please contact Kerry Kirwan:
M: 022 010 8005
E: kerry@quinovic-parnell.co.nz

Needing Specialist Help and Advice?

Over the past nearly 20 years Quinovic Parnell has been operating, we have developed a network of professional contacts covering all aspects of buying, owning, developing, renovating, even selling, of rental properties. Unlike many of our competitors we don’t accept commission for passing on sales leads. This means that when we recommend a network partner to you, it’s because we genuinely believe they will do a great job.

Our networks include:

Professional advisors like solicitors, accountants and valuers – all of them specialists in residential rentals.
Mortgage brokers who can assist you with a wide variety of refinancing options – even if your own bank says ‘no’.
Builders, architects, landscape and interior designers who can help if you are looking to upgrade or renovate your rental property.
And if you are looking to buy or sell – experienced and successful real estate agents who understand the nuances of your type of property and location, or who can work with you to find the you the perfect rental investment to purchase.

Please ask us, we are always happy to refer you to one of our network partners.

Click Here to Contact Quinovic Parnell

Property Management Newsletter for November 2014: Investor eye rent rises; Immigration boom to sustain market

Posted on November 20, 2014 by Quinovic Parnell

Property Investors eye rent rises
Many of Quinovic’s property investors – especially those with properties in Auckland – are reviewing their rents as they approach the end of another year of increases in property values and council rates rises.
Recent surveys of landlords have shown a majority intend to put up rents. Our Property Managers are keen to assist any clients considering increases by sharing their information and insights about local market conditions and providing advice on acceptable rents for specific properties.

Many property investors already dealing with rising insurance costs have also been hit with significant council rates increases, which were a significant contributor to increased housing costs for the September quarter, according to Statistics NZ figures released in late October. Housing rentals were up 2.2 per cent for the quarter, while the cost of newly built houses jumped by 4.8 per cent.

Meanwhile, low quarterly and annual inflation figures provided some reassurance for property investors as economists agreed the Reserve Bank was likely to hold interest rates steady for some time.

September quarterly inflation of 0.3 per cent was lower than expected, and annual inflation was down to just 1 per cent – the lowest since the lowest the middle of last year.

And a year on from the introduction of the LVR 20 percent deposit rules, Reserve Bank Governor Graeme Wheeler credited the restrictions with dampening house-price inflation and credit, and reducing consumer price inflation pressures. Mr Wheeler did not predict when the LVR rules would be lifted or relaxed.

A useful round up of current and predicted future mortgage interest rates by Bernard Hickey at interest.co.nz, on October 21, noted that banks had been cutting their two and three year rates by more than 50 basis points since the beginning of August. “Two year mortgage rates have fallen clearly below 6% and now around 100 basis points below advertised mortgage rates”.

Bank economists were recommending fixing over floating rates with 2-3 years fixed being the most attractive.

Immigration boom to sustain property market:

Immigration has, in recent years, been a key driver of the rental property market and investors will be welcoming news that demand for accommodation by new arrivals to New Zealand shows no sign of dropping.
Record immigration numbers were released last month and the Government is stepping up its drive to attract skilled workers, including expat Kiwis, from countries such as the UK and Australia.

Figures for the 12 months to September revealed an unexpectedly high inflow, which the Government said was being driven by international students, particularly from India, and more people returning home from Australia.

Immigrants totalled more than 105,500 for the 12 months and the net loss of 6000 people to Australia was the smallest since 1994. The record net gain totalled 45,400 people compared to the previous record, in 2003, at just 42,000.

Meanwhile, Government will hold a series of job expos in the Australian state capitals starting this month in Perth and Sydney. Organised by the Ministry of Business, Innovation and Employment, together with international employment event organiser Working In, the job fairs aim to encourage more Kiwis to return home and Australians to settle here to help fill emerging skills gaps and support thriving New Zealand-based businesses.

Tertiary Education, Skills and Employment Minister Steven Joyce says some New Zealand employers, particularly in the construction, engineering, and ICT sectors, are finding it hard to recruit sufficient numbers of skilled and experienced workers. These targeted job expos build on the success of similar events in the United Kingdom and Ireland and will expand the pool of potential candidates for New Zealand
employers wanting to grow their businesses.

“For many people Australia and New Zealand are becoming one labour market. We’ve donated lots of our people to work over there in the last 20 years. Now with our economy doing better, it’s time to get more people moving back the other way.”

If you are wanting to talk to an experienced property manager, contact Quinovic Parnell

Book Now – Auckland Property Investment Seminar

Posted on November 9, 2014 by Quinovic Parnell

PROPERTY INVESTOR SEMINAR – HELPFUL TIPS

Property Investment Topic s We’ll Discuss

Your Property Rental Investment Strategy – Planning Ahead
Finances & Considerations With Respect to Your Property Investment – Achieving Your Goals
Tax & Considerations – Maximising Your Returns

Click on image for pdf Invitation

Karen Tobeck (Monteck Carter Chartered Accountants),
Heather Samu (Mortgage People) and David Vinsen (Quinovic Parnell) invite you to attend:

Karen Tobeck – Karen is a chartered accountant, business advisor and partner in the firm of Monteck Carter, also she holds a Master’s Degree in Taxation Studies. Through her clients she has gained a huge amount of experience
working with small to medium sized businesses, and investors with respect to accounting and taxation issues.As a business owner and property investor herself, Karen is well experienced and qualified to give advice on tax effective structures and what you need to put in place to achieve your goals.

Heather Samu – With 25 years’ experience in banking in roles including branch manager and business banking manager, Heather has helped thousands of Kiwis
achieve their home loan goals. Experienced and committed to negotiating the absolute best package her clients – for their short-term needs and longer-term financial health
– Heather is a keen advocate for Kiwis making the most of home ownership goals and knows just how to make it happen.

David Vinsen – David has a portfolio career, spanning a number of Chief Executive,Trustee and Directorship roles, which all have common themes of responsibility, integrity and trust. With his wife Mary he owns Property Management Company, Quinovic Parnell, 2013 Top Performing Franchise. He is chair of Parnell Community Trust, a non-profit community services provider with 80 staff. David has extensive leadership experience; currently contracted as the Chief Executive of the Imported Motor Vehicle Industry Association; previously President of the Motor Vehicle Dealer’s institute, where he was the Fidelity Fund’s longest serving Trustee. He has been an investor in property, including residential, commercial, light industrial and resort businesses, for over 30 years.

Refreshments from 4.30pm
Tuesday 18th November 2014, 4.30 – 6.00pm
Eastside Cafe, Eastside Business Park
15 Accent Drive, East Tamaki

Limited spaces available
RSVP here

Quinovic Property Management February 2011 Newsletter – Flight to Quality

Posted on March 8, 2011 by Quinovic Parnell

Flight to Quality

Investors around NZ are increasingly turning to Quinovic’s experienced and professional property management teams following extensive changes to the Residential Tenancies Act (RTA) last October, says Quinovic Managing Director Ross Davey. “While the changes were welcomed by the sector, they have increased landlords’ responsibilities and smart investors are aware that they risk significant penalties for wide-ranging offences under the Act,” says Ross. “They realise it’s more important than ever to choose a well established, reputable management company with good systems and good people. “The RTA amendments have certainly lifted the bar and any

investors attempting DIY portfolio management need, at the very least, to familiarise themselves with the changes and appoint a NZ-based agent if they’re going to be overseas for more than 3 weeks.” Ross says “corner shop” operators may be able to offer budget fees but lack the knowledge, experience and systems needed to safeguard property investments worth hundreds of thousands of dollars. “There’s definitely a ‘flight to quality’ happening out there. “At the very least it’s important to have property managers available round-the-clock, as the Christchurch earthquake showed, and to avoid entrusting your assets to individuals that may have a conflict of interest,” says Ross. “Quinovic is now in its 23rd year as a specialist residential property management company and we ensure our franchise owners are very high calibre individuals who are passionate about property and well informed. We provide national software support for our internal software and have a strong management team of experienced people to provide support

For a copy of the newsletter please click on the link below

NEWSLETTER February 2011

Quinovic Residential Property Management Newsletter – February 2011

Posted on March 4, 2011 by Quinovic Parnell

Population growth will fuel demand for rental accommodation, the Centre for Housing Research says in its Auckland Housing Market Assessment. The total number of dwellings in greater Auckland is expected to increase by almost 100,000 units, or 40%, to 601,420 in 2026 with the biggest growth in older and smaller households. Demand for rentals will increase much faster than demand from owner-occupiers, with a 63.5% increase from 151,180 to 247,160 rental dwellings.

You can download the full report …

Please click on the following link to read the 02 February 2011 Quinovic Newsletter