FAKE News? Even the Rental Market isn’t Immune

Do you believe everything you read about the Auckland rental property market?  It might be correct, but could be out of date, incorrect, or even worse – it could be fake news!
 
We have all seen the attention-grabbing headlines.  Here are some recent samples:
  • Landlords worried as government moves on compulsory heating in rental properties
  • It was like being in a coffin – Aucklander shares experience renting in NZ’s most expensive city
  • Landlords welcome new meth report: money on problem that doesn’t exist
  • Property predictions for 2018
  • Meth-testing in homes – don’t bother
  • Rental home heating regulations should be in force
  • $1.3 million spent on meth clean up in state houses – just $3,000 on mould
  • What’s squeezing the life out of New Zealand’s rental market?
  • Landlords reveal why your rent is rising
  • Buying property for the short-term rental market
So how do you sort out what might be accurate or truthful, and what might apply to your own situation?
 
For example:
  • Did you know the rental market slows down at certain times of the year?  This affects the time it takes to rent properties and rental returns. It can vary from city to city.
  • Do you know what the rental market is doing right now, suburb by suburb, or city by city?
  • Are queues of prospective tenants a myth or reality for Auckland? Or does tenant interest vary according to location, and the type of property you are trying to rent?
  • Do you know about legislative changes affecting rental properties that come into law on 4 April 2018?
  • Do you know about changes to the law for rental properties that will be compulsory from 1 July 2019?
  • Do you know what these new laws are and how they apply?  Or are you relying on what’s been speculated in, or even relatively ignored by the media?  Do you understand how these changes will affect you and your property?
  • Are you aware of what a PCBU is, and how this affects you and your rental property?  Landlords, property managers and tenants all have obligations to discharge as PCBUs. (A person conducting a business or undertaking).
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By not knowing, you risk significant fines for non-compliance.  With the correct information you can significantly enhance your returns or find great tenants quicker.
 
Get in touch with the experts in Auckland property management.  Quinovic Property Management specialises in managing residential rental properties.  We have been managing properties for over 30 years and know the rental market inside and out.  It’s all we do.   With a nationwide network of 34 offices, 180+ staff, an in-house property lawyer, and thousands of properties under management – you can see why.
 

Our Free Offer to You

At Quinovic Parnell we are offering to give you free, up to date, accurate, informed and customised information;  relevant to you.  If there are enough people wanting the same information, we will publish the questions and answers.
 
Follow the link below to get in touch with Quinovic Property Management Parnell, Auckland:
 

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 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

 

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

More on Rent Arrears…

Having written last week on “How to Achieve Zero Rent arrears” I was amazed to discover two friends whose rental properties had fallen into serious arrears while being managed supposedly by professional property managers. Sadly we hear the same story time and time again so this was just another example (two more actually) Why would any landlord accept tenants who fall behind in their rent payments. Well example number 1. Owner of a very nice 5 bedroom home under-rented, managed by a property manager who was under resourced to cope with the business, did no inspections in a year, did not review the rents and allowed rent to be in arrears to the tune of $9000?? The question is why? Why does an owner put up with it? They said they didn’t want to lose the tenant in case they couldn’t find another one?? But worse still, they didn’t want to terminate the agreement with the property manager because the property manager was a friend and was cheap!!  Example number 2. Property investor with several rental properties, some managed by property management company and some self managed.  The self managed properties lost $16,000 in rent arrears in one year? Why? The investor could not be bothered to check his bank statements nor did he review rents or inspect the properties. Needless to say we will be offering to turn the situation around in both cases including chasing the rental arrears. As a property investor myself and owner of Quinovic Property Management Parnell I know there is a better way. Contact us Mary Vinsen or David Vinsen and have your property or properties managed professionally.