Auckland’s New Property Millionaires

The residential rental housing market is seldom dull.  What an eventful few weeks we have had!

Did you check the new Auckland property revaluations recently?  On the first day of online access 120,000 people checked 10.3 million Auckland Council property revaluations.

Auckland Council pre-empted a lot of increases.  They announced the average house price rose 46% to $1.076 million since the previous revaluation three years ago.

In June 2018 Auckland Council sets its new rate level.  It will be clear then how these increases translate into rent increases.  It is likely we will see upward pressure on residential rents.  Property owners and investors will attempt to maintain equilibrium in their rental returns.

Those new revaluations may already be out of date

Most property owners are aware the Auckland housing market has been cooling.  It also means it is likely some properties may be worth less than their new revaluation.

Real Estate Institute of New Zealand (REINZ) figures released for year ending October 2017 state the Auckland median property sales price fell 3.2% year-on-year to $850,000. This is the biggest fall since December 2010, and the lowest median price in the last 16 months.  Yet it might not be as grim as it first seems.

There has been a glut of apartment sales in what was the old Auckland City Council area. This brought down the median value for the whole Super City region.  And it depends on how you measure “price”.  REINZ also do another calculation using a House Price Index (HPI) formula.  For the Auckland City legacy area, this only resulted in a decrease of 0.8% year-on-year.  HPI looks at the mix and value of the properties sold, not sales price alone. This makes an allowance for all those apartments.  Feeling better?

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Hold Don’t Sell

The slowing down of Auckland residential property sales has seen a lot more properties which didn’t achieve an acceptable sales price, convert to rental properties.  Depending on property equity, many reluctant landlords with a well-managed rental were surprised at the achievable returns.

Quinovic Property Management Parnell offers free residential rental appraisals.  You might be surprised at what you can achieve.  Get in touch with Kerry Kirwan to discuss your circumstances by clicking on the link below:

Contact Kerry Kirwan at Quinovic Parnell for a Free Rental Appraisal

It’s not always smooth sailing being a residential property landlord.  In November 2017 the Dunedin District Court overturned a ruling known as the Vic Inglis Tenancy Tribunal decision.  The Tribunal ordered Vic Inglis, the rental property owner, to refund his former tenant over $10,000 in rent.  This was due to having non-compliant alterations in his rental property.  Common sense prevailed.  The District Court ruled that although the technical breach was “unlawful”, as the tenant had not suffered from the breach, she must pay back the sum she had received.

Where a rental property has no full Code of Compliance sign-off, Tenancy Tribunal adjudicators will be able to base their rulings on the degree of unlawfulness and harm caused to tenants.  This should help ensure that resolutions are fair to all parties.

We say landlords should ensure their rental property complies with all building regulations and not knowingly take risks.

On a Positive Note for Tenants

Housing Minister, Phil Twyford, announced Government plans to pass the Healthy Homes Guarantee Bill by Christmas.  Insulation requirements will be compulsory from 2019.  At Quinovic Parnell we have been talking to our rental property owners about insulation requirements for some time.

The Labour Government has indicated there will also be minimum standards for heating which is likely to be in the form of heat pumps.  Confirmation of insulation and heating requirements will be within six months of the Bill enacted.

Keeping Your Rental Property in Good Shape

There is already a lot going on for residential property investors when it comes to maintaining their properties to an acceptable standard.  Are you aware there big changes?

From 1 July 2019 all rental properties are required under legislation to have ceiling and underfloor heating, with EECA, the government agency responsible for energy efficiency and conservation, being tasked to promote the government’s Healthy Homes Programme.  Investors who own rental properties need to stay up to date with their legal obligations, EECA’s websites are definitely worth reading.

Below are a couple of links to websites you could check out:

Setting up your rental property in advance of this increasing compliance focus gives a strong foundation for not just keeping it in good shape, but also in protecting those who live in it, and you as their landlord.  There will always be a cost to do this, however if ignored the cost can be much greater.

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There are obvious day-to-day things that are front of mind when it comes to a healthy home including:

  • Keeping your home warm and dry
  • Saving on power bills, etc

However, there are less obvious aspects that can be overlooked, especially after a property has been rented for some time.  No one wants to wake up to the news that their property has been the cause of a tragedy.

Here at Quinovic Property Management Parnell, we take our responsibilities to look after our tenants very seriously, and this includes having robust systems in place to make sure ongoing maintenance is taken care of, such as:

  • Electrical and gas work is properly certified
  • Appliances are serviced regularly
  • Heat pumps are cleaned regularly
  • Chimneys are checked and swept regularly
  • Smoke alarms are checked and serviced
  • Insulation meets the required standards

As well as the primary focus being the safety of tenants and their families, our maintenance programmes reduce the risk for landlords, including where there are any insurance claims, that these are approved.

For more advice or information about our residential property management services, follow the link below to get in touch with Quinovic Property Management Parnell:

Quinovic Property Management Parnell

Reputable Property Managers in Parnell (Auckland, NZ)

Quinovic Property Management in Auckland has earned an enviable reputation for providing over 20 years of reliable property and tenant management for residential properties.

Our range of property management services is extensive, modern and well regarded by our rental property owners and investors.  As evidenced by the fact that our residential property management business tends to grow through word of mouth of our existing client base.

Specialised property account management ensures we can integrate all of the Quinovic property services to provide the complete management  service for you and your rented property.

To contact the specialist property management team call Quinovic Parnell.

Quinovic Parnell, rental property Auckland, property for rent, property management Parnell Auckland, Quinovic Property Management

A Rare Gem in Desirable Kohimarama! New Rental Property Listing!

Quinovic Parnell Auckland Property Management Specialists

Executive Home Available for Rent!

We have for rent a stunning, architecturally designed 3-bedroom home with 2 bathrooms and an extra living area.  This is a beautifully designed rental property with plenty of space, light and sun.  Located within a short walking distance of Kohimarama beach in Auckland, local shops, cafes and public transport….$1200/ week, available in the New Year.

Contact Kerry at Quinovic Parnell with your expressions of interest 0220 108 005

Property Management Auckland

Quinovic Parnell property managers have returned from their christmas break as have a number of property owners, and business is very busy. Many of our new clients read our blog about self managing rental property, rent arrears, choosing the right property manager etc last year and are now coming to us to take the pressure and worry off them. Fortunately we are very well resourced at Quinovic Parnell and have the capacity for lots of  new business this year. In fact there is a growing demand for rental properties and definitely a shortage of well presented and well maintained houses, townhouses and apartments.  We have already taken on new clients and as well as those who read our blog we have a number of referrals from current clients. Property management in Auckland should definitely be the job of a professional property manager who can ensure rents are paid on time every time, rents are reviewed and kept up to market, properties are maintained, tenants meet their obligations and legal requirements are met.

On another but related note. Owners of Quinovic Property Management Parnell, Mary and David Vinsen recently sold their house so they could move to Parnell and rent a property there. Ironically they had to look beyond their own property portfolio to find a suitable rental property because everything they had on file was rented long term. Luckily they have found a home and in the process found some new properties to manage. They are now looking for tenants wanting high quality elegant homes in the $1000 to $2000 per week rent bracket as well as more properties in the $500 to $1000 per week bracket.

Contact us

 

Avoiding Rental Property Traps

You’ve decided to rent out a property but are you aware of the pitfalls? While “letting agents” and some real estate agents can rent out your property for a fee paid by the tenant, that may be all they do. Mary and David Vinsen, new owners of Auckland-wide property management company Quinovic in Parnell, say many new landlords are unaware that owning rental properties requires proper and often time-consuming management. “Some property owners discover to their consternation that management involves more than just letting premises and hopefully collecting rent,” Mary Vinsen says. “For example, how do you ensure that your tenants are reliable rent-payers or that your property is maintained and left in the condition it was rented at the end of the tenancy?” she asks. “Who monitors condition, organises maintenance, collects and accounts for rent and expenses for end of year financials? Generally, not a letting agency! But we do.” Established over 20 years ago in Wellington, Quinovic is the largest privately-owned specialist residential property management group in the country with offices individually owned, and operated to a consistently high standard across the country. The company acquires tenants with proven credit histories and references, lets properties without charging them fees; and is on call to deal with any property-related issues. Property owners can access regularly updated confidential reports via the internet covering the property’s condition, maintenance and repairs, rental cash flow, inspection reports and photos and customised financial statements. “The peace of mind and freedom to live your live as you’d like costs only a small fee based on a percentage of income,” Mary Vinsen says. David Vinsen says that some clients are actually former tenants who found Quinovic administration “firm but fair” and eventually enlisted the company’s management expertise when they acquired their own investment properties. For a free rental appraisal, contact us David Vinsen or Mary Vinsen at Quinovic Parnell; ph 473 4353; or email enquiries@quinovic-parnell.co.nz