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Those new revaluations may already be out of date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?

Quinovic-Property-Management-Parnell-Propety-Investment

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 for Rental Property Investors

Property investing can be a risky business.  Follow our tips to maintain a long-term reliable rental income from your investment property.

Purchase Quality Fixtures & Fittings

Under-budgeting, and purchasing low quality appliances is a mistake many property owners make.  Low quality fixtures, fittings and appliances often require regular maintenance more frequently, and need to be replaced after a much shorter period.  This causes the cost to be more expensive than if a quality item was purchased in the first place.

Tenant-Landlord Relationships

Maintaining a professional relationship with your tenants is a great way to encourage them to stay longer and take good care of your property, helping maintain a reliable rental income.  Good communication and goodwill goes a long way in maintaining good landlord-tenant relationships.  Tenants generally expect enquiries and requests to be answered in a timely manner, and appreciate you being friendly and co-operative – remember goodwill reflects goodwill.

Preventative Repairs

Does the roof need to be repaired?  Are the windows leaking?  Is the property secure?  Look out for any preventative repairs required during property inspections to reduce the occurrence of damage over time.

Investing Badly During Renovations

When landlords decide to invest in a rental property it’s often with the goal to increase its rent income and tenant demand.  Yet all too often people fail to invest in quality products that will earn profits in the long-term.  Though it’s tempting, try to avoid cheap, low quality paint, wallpaper, carpets and tiles.  These have a habit of wearing out quickly.  Discerning tenants look for better quality and you may be cutting some of the best tenants out of your market.

Quinovic Property Management Parnell Gives Tips for Rental Property Investors

Price-Rent Ratio

Don’t make the mistake of sealing the deal and purchasing investment properties without fully understanding the financial situation.  Take the time to first consider what the cash flow will be, how the property will help your financial position, and what initial maintenance may need to be done to attract good tenants.  Analyse the gross yield and net yield of the property, then calculate what you will earn after all the costs are taken into account.  You may even find the property isn’t as profitable as you first assumed.

Managing the Property

Managing properties is more than just being available to answer tenant calls all day every day.  Make sure you keep on top of the paperwork too.  Often we hear about landlords who let rent arrears get out of control with thousands owned.  A simple spreadsheet and swift contact with the tenant can help you keep on top of rent arrears, maintenance costs, endings of tenancies, help you measure the financial success of the property, and remind you when the rent value can next be looked at.  Thus creating a less stressful investment and a more confident investor.  Another common mistake made by self-managing landlords is the avoidance of properly checking and recording the condition of a property, at the beginning and end of each tenancy, and at regular property inspections, then letting damage go by without claiming the repair cost from the tenant.

Find Out More

To find out more about property management get in touch with Quinovic Parnell – experts in property care and return.  Click on the link below:

Get in touch with Quinovic Property Management Parnell

Are You Satisfied with Your Auckland Property Manager?

We often hear stories from property owners who pass their Auckland rental properties over to us after a bad experience with their previous property manager. Today we share with you some of the feedback we receive from our satisfied property owners and Quinovic Parnell tenants:

  • “Wonderful professional service – 100%.”, G.A., Parnell
  • “Gordon is very professional and always contactable – 100%.”, A.G., Parnell
  • “I am very happy with the service and communication – 10 out of 10.” J.H., New Lynn
  • “Professional management, only escalates things to me when necessary;  I have no need to get involved – 100%.” D.V., West Harbour
  • “Gordon has been helpful and professional – 9 out of 10.” C.D., Remuera

Quinovic Property Management Parnell Satisifed Owners and Tenants

  • “I would like to express my appreciation for the excellent service you have provided as my property manager.  I appreciate your friendly and efficient professionalism every time we communicate about my tenancy.  I commend and recommend you to everyone I meet.” V.T., One Tree Hill
  • “Lynette has been thoroughly professional and very helpful in dealing with my tenancy.   Her level of service was not something I have previously encountered as a tenant and 2 or 3 minor issues have been dealt with very quickly and unobtrusively.  Regular inspections were notified well in advance and carried out with no disruption.  Lynette is just the person you’d want to be dealing with.” A.M., Parnell
  • “I just wanted to thank you for being incredibly accommodating.  Thank you for being such a wonderful landlord over the past two and a half years – it has been a pleasure.  We both really appreciate all you have done.” TMR, Parnell

How good is the feedback you are giving to your Auckland property manager?  Follow the link below to get in touch with Quinovic Property Management in Parnell today:

Quinovic Property Management Parnell

 

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.