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:

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