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Those new revaluations may already be out of date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.

Tips from Quinovic Parnell to Help Prevent Your Christmas Gifts Being Stolen

The festive season can be the time of year when thieves target your presents – both in your home and vehicle.  With the warm weather we tend to get out and about more.  There’s invitations and celebrations this time of year too – so you could be leaving your home unattended more than usual.

We thought now would be the perfect time to offer you some tips.  They apply to home owners and tenants of rental properties:

  1. Keep Valuables Out of Sight in Your Car:  When out Christmas shopping ensure valuables and gifts are out of sight.  In the Christmas rush it can be easy to put everything on the back seat and rush to the next store without a moment’s thought.  Use your boot or parcel shelf.  Check gifts and valuables are out of sight and ensure you lock your car if you need to leave it unattended.
  2.  Place Your Gifts Out of Sight Until Christmas Day:  Put off placing your gifts under the tree until as close to Christmas Day as possible.  It’s a good idea to close the curtains so all presents are out of sight.
  3. Store Valuable Items in a Secure Place:  Make sure your valuable presents are away in a lockable cupboard, stored in a bedroom or in a secure locked garage.
  4. Keep Boxes and Receipts Out of Sight:  Your boxes and receipts should be out of sight from prying eyes and we suggest making sure they aren’t visible through windows.
  5. Get Your Online Gifts Delivered Elsewhere:  Online shopping is more and more popular.  Get your online gifts delivered to an address where someone is there all day, or at your workplace.
  6. Avoid Placing Gifts in One Place:  While it’s tempting to store all your gifts in one place, it’s a good idea to store them in multiple areas in your home.
  7. Be Careful How You Dispose of Packaging from Expensive Items:  With so many great offers around the festive season it can be the perfect time to buy a big ticket item or upgrade the television.  Take your packaging away for recycling to the local refuse centre, or break or rip it into smaller pieces which are unable to be identified.

We hope our tips have helped you to enjoy your festive season.

Quinovic Property Management Parnell Tips

Rental Properties that Accommodate Pets in Hot Demand

Allowing tenants with pets in your rental property can be a great opportunity for an astute landlord, as long as there are clear rules and boundaries up front.

Quinovic Property Management Parnell can help you to make the correct decisions for tenant and pet selection.

pet friendly rental properties

Some important considerations:

    1. Review your rental property and ensure what you are offering will be suitable for pets, and what type.
    2. Do you have a fully fenced property?  Do you have pet doors?  Do you live on a main road?  Will the home suit inside pets only, or can you cater for both inside/outside dogs/cats?
    3. What are the regulations for your apartment, townhouse or investment home?  Make sure you meet the requirements and know them before you enter into a tenancy agreement.
    4. Tenants and pets both need to be reviewed.  Make sure you check the references of the tenant but also meet the pet (especially dogs) to ensure you are comfortable with how it interacts with the owner.  If you are unsure of the breed of the animal, do your homework to ensure they will be suitable for your home.
    5. Most tenants with pets tend to be very grateful that you are considering them.  They still need to be checked, and you need clear rules around what you will and will not agree to.  You should record these clearly in the tenancy agreement and it should be signed by both parties at the start of the tenancy.
    6. Ask for a photo of the pet for your records, and a reference from someone who knows the animal.
    7. It is very important you have good property condition photos at the beginning of the tenancy, and you do regular inspections and reports to ensure you have robust records of any damage to the property, gardens, furniture etc.  Address issues before tenants leave as the bond may be insufficient to cover damage to carpets or walls from an inside pet.
    8. Marketing of the property should include what you see are the selling points such as secure, fully fenced backyard.  Highlight what would attract a tenant/pet owner, making sure you target what they could be looking for in the rental property.
    9. Be clear about what you are offering and agreeing to before the tenant moves in.  Record everything in the tenancy agreement including number of animals, type, name and whether they are to be inside or outside.  Do your homework!
    10. Get a bond for the property (four weeks minimum).  At Quinovic Parnell we also ask for an additional pet surcharge.  This is payable at the start of the tenancy and recorded in the tenancy agreement.  This covers deodorising of carpets and soft furnishings, and a commercial clean of the property at the end of the tenancy.  Further damage the pet may cause would need to come from the bond if necessary.

Follow the link below to get in touch with Quinovic Parnell about us managing your Auckland rental property:  Quinovic 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

Quinovic’s Top Reasons to Move into an Apartment

The Auckland apartment market is growing, and each month we are offered more options to buy.

Is it time to review the pros and cons of moving into an apartment?

Key Questions You Should Ask Yourself:

  1. If I was to downsize from the family home and move into an apartment – could I keep the family home and rent it out?  What would the rent be and whom should we use to manage the home?
  2. What if I sold the family home and with those funds could I buy maybe one or two apartments and also have enough to buy another townhouse or apartment for myself?
  3. Or maybe I move into the holiday bach and rent out my new investment apartments/townhouse or home? What if I sold the family home and with those funds could I buy maybe one or two apartments, and also have enough to buy another townhouse or apartment for myself?

Auckland apartment lifestyle, rental property, Quinovic Parnell, Quinovic property management

  • Location, Location, Location:  Apartment living is all about your location – moving into the city or its fringe, will give you easy access to public facilities like libraries, art galleries, town hall, theatre and public transport.
  • More Affordable:  Your apartment can be more affordable – even with a body corp fee to pay.  Gone is the maintenance of the home, gardens, insurance, and maybe the removal of the balance of the mortgage.  This can mean you have funds left over to live your life as you desire.
  • Lock Up and Leave:  Travel is more affordable than ever.  With the ability to lock up and leave – you have the opportunity to just leave, knowing there is a building manager you can contact if needed – and who will also take an interest to make sure all is well, whilst you are away.  Escape the weekend or head overseas – you have choices, especially if you have downsized and now have some surplus funds.
  • Choice Over Facilities:  Always wanted a heated pool, spa, sauna or gym?  Choose an apartment that will supply what you want – and share the cost of running these facilities with the apartment owners.  It’s great when you don’t need to leave home, and have these wonderful facilities on your doorstep.
  • Share Costs:  Yes you have a body corp which runs the complex and it is wise to be involved and show an interest in how it works.  The advantage is you have like-minded people sharing the decision making and who help to keep a well maintained building – your new home.
  • Opportunity:  Apartment living gives you a chance to review how much of your money will be invested in the family home.  Should you take some of that equity and make it work in an investment home/apartment or townhouse – or do you just use it to travel and see the world?

If you are looking at property management of your investment – get in touch with Kerry Kirwan from Quinovic Parnell today on 0220 108 005.

Is DIY Part of Your DNA?

Approximately 25% of New Zealand residential landlords use a property manager from a property management company.  In Australia it is around 80% and in the UK it is even higher.

Why are we different to other countries, and what is it costing us?

One reason we are out of step compared to other countries is we are a national of DIYers.  A do it yourself attitude is a dangerous one when it comes to property management.

Relatively speaking, New Zealanders are naive, and continue to bring a DIY attitude to not only property investment, but all kinds of business enterprises.  It is why so many owners started out with big ambitions, and now find themselves stuck in a rut – working hard for little return, and seeing no way forward other than to work harder.

Smart business people allocate time and effort to where it will make the biggest difference, and engage others to do the rest.

Quinovic Property Management Parnell, rental property Auckland, property managers Parnell

Almost every new client who comes to us after having managed their own rental property has been leaving money on the table, often for years. The reasons are many.

Ambitious business owners aim high.  New Zealand has plenty of world beaters who got there by not only working hard, but thinking smart and surrounding themselves with great people.

We would like to see property investors flourish in this country, achieving the returns and long term wealth that’s really possible.  Regardless of how you are growing your wealth – how much more could you create with the support of committed experts who are out to have you win?

Talk to Kerry Kirwan from Quinovic Property Management Parnell about us managing your Auckland rental property:
P: 09 373 4353
M: 0220 108 005

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

NZ Herald Article re: Auckland Apartment Rents

An article yesterday in the New Zealand Herald by Anne Gibson suggests apartment rents in Auckland City will rise due to immigration and the growing economy driving up demand for rental accommodation.  At Quinovic Parnell in Auckland, we have seen apartment sale prices increase and rents stay much the same, however agree it is a matter of time before market rents start to catch up.

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Are you an Auckland property investor?  Get in touch about a consultation so you can explore how we can add value to your Auckland property portfolio.

Get in touch with Quinovic Parnell today:

Contact Quinovic Parnell in Auckland

Talk to Mary or David Vinsen, or speak with our Business Development Manager on 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.

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