Tauranga Property Investors Urgently Required

Mount Maunganui from Pilot Bay

The official start of Summer is only a couple of weeks away and once again the Bay is ready for a summer full of events and visitors. Even though we don’t have the annual cruise ships this year, there a many Kiwi’s exploring the country and we expect lots of these local tourists to explore our amazing Region.

As we have spoken about in previous blogs, rental properties are still in short supply in the Bay area (this includes rental properties in Tauranga, Mount Maunganui, and Papamoa areas). We have many fantastic tenants waiting for their ideal home, this includes houses, units, and apartments both furnished and unfurnished.

With low-interest rates now is a great time to think about property investment and a great time to rent out that bach or second home that doesn’t get used as often as you would like. The returns on investment are excellent, and with our flat-rate Property Management fee, we can guarantee what your rental return will be. Furthermore, we have a strict selection process for screening tenants and we have regular comprehensive property inspections using the latest property management software.

If you choose to use us as your Property Managers, we have a secure Landlord Access Portal that you can access anytime from anywhere. This portal will provide you with tenancy information, from income and expenditure reports to tenancy details, at any time.

Our expertise includes over 20 years of real estate knowledge for the Bay area. We are a privately owned and operated business and we pride ourselves on our fantastic and friendly service.

So, if you have a property you would like to rent, or if you are considering becoming a property investor in the Bay area, give us a call today. We can walk you through the steps of what you need to do, including any legal requirements, discuss rental returns, and set you up with the perfect tenants as soon as you’re ready!

Freephone 0800 333 221

REAL Landlord Insurance Offered to Connect Landlords

real landlord insurance logo

As professional property managers, we do our utmost to ensure all the appropriate measures are taking to avoid the need for insurance claims.  Unfortunately, there are factors out of our control such as ‘third parties’ and unforeseen events. If you don’t have Landlord Insurance you might like to call us and find out how it can help you keep your rental under control. We can send you some useful information about our recommendation, REAL Landlord Insurance, which we believe to be the best insurance policy offered to landlords in New Zealand. It is exclusively offered ONLY to owners who have their property managed by a professional property manager.

‘REAL’ have developed a Landlord Preferred Policy, which is designed for Landlords of residential rental properties that are managed by an approved Property Management Company, such as Connect Realty, it provides cover that compliments your house insurance including:

• Loss of rent (More than 97% of claims have been for the loss of rent suffered by Landlords)

• Intentional damage (your building insurance may not cover the entire loss caused by damage by the tenant)

• Legal Liabilities

…and much more.

This Landlord Protection Insurance is preferred by the Real Estate Institute and is underwritten by NZI, a business division of IAG New Zealand.

Please ask for a more in-depth handout that you can revise in order to better inform yourselves of the policy benefits. We also will talk to you about premium costs/charges and the uniquely tailored Building Cover available.

Your policy and renewals will be managed by us, to protect you.   So give the team at Connect Realty a call today to discuss insuring your investment property 0800 333 221.

Investment Property Maintenance

With the arrival of spring now is the perfect time to get your investment property looking its best, including lawns and gardens and any necessary repair work to outside areas.  A good place to start is removing any winter build-up of moss and mould around your rental property.  Driveways and decks can become very slippery and may be hazardous for your tenants, particularly areas that have been shaded over winter.  Driveways and decks can usually be waterblasted to remove moss and mould build-up. Products such as wet & forget are usually very effective for moss as is sugar soap for mould. Wash the exterior of your house, remove cobwebs and clean the windows to do away with any traces of the wet, cold winter. You might also need to fix minor problems such as decks or weatherboards that need replacement.

Property maintenance also includes ensuring your investment property is meeting all the necessary safety standards according to building code and Council regulations – particularly in relation to fencing around pools and laws about pergolas and decks. The Fencing of Swimming Pools Act states that all private outdoor pools must be fenced unless the walls of the pool are more than 1.2m above the ground, or the maximum depth is 400mm or less. The fence must surround the area immediately around the pool only. Gates should close and latch automatically. Older swimming pools are also required to adhere to the current standards, the most common reasons pool fences failed compliance is because they are not high enough, had gaps or gates that are not self-latching.

Another area where you need to be prudent is building consents. As a result of the Christchurch earthquake new building codes were introduced for decks, pergolas and other additions to your property. These new standards aim to protect residents and the public from ‘unsafe’ building practices. For your Tauranga, Mount Maunganui and Papamoa property please see the Tauranga City Council guidelines which outline when a consent is needed.

If you have any questions relating to this blog please feel free to phone on 0800 333 221, as your Property Managers we are more than happy to give advice or put you in contact with the correct agency.

Property Investment in 2020

The following article is copied from the Bayleys newsroom, published in 3rd July 2020:

“Where to for property investors?”

Where the effects of border closures on rental demand are offset by record-low interest rates, Bayleys property reporter Katharina Charles investigates what the new ‘sweet spot’ for investors looks like in a COVID-19 economy.

Fears New Zealand’s COVID-19-related border closures would have a disastrous effect on our rental market are beginning to abate as latest data from Statistics New Zealand shows residency visa approvals are returning to normal numbers.

The news is positive for property investors that have endured an uncertain few months given rising unemployment, the introduction of emergency regulation, and ongoing compliance relating to the Healthy Homes Bill and proposed changes to the Residential Tenancies Act.

While an increase of policy targeting property speculation has given some investors pause for thought, investment into residential property remains the favoured mode of wealth creation for Kiwis attracted by long-term capital gains and the tangible nature of residential assets.

Influence of COVID-19

Trade Me Property spokesperson Aaron Clancy told Good Returns that the company’s latest rental data indicated the wider New Zealand rental market was beginning to return to pre-COVID levels, despite of continued restrictions at our borders.

“Kiwis returned to their new normal in May, and we saw both supply and demand for rentals bounce back after a turbulent few months,” Clancy told the publication.

Where vacancy rates hit double digits across areas like Auckland’s central city, Rotorua and Queenstown, the rental picture has become a little brighter following renewed business confidence and further financial relief announcements by the government.

“So far it looks like both tenants and landlords have confidence in the market,” Clancy said.

Tenant preferences drive rental decisions

Where the absence of international students and short-term travellers has hit the apartment sector particularly hard contributing to temporarily higher vacancy rates, the trend toward owner-occupied stock has offered a cushion for the blow.

Attractive rental yields are still being achieved across the country, aided by the long-term trend of rising weekly rents and record low interest rates which have made borrowing for a mortgage more affordable than ever before.

For investors, a property that attracts quality tenants is the most desirable attribute, and today, tenants are searching for modern properties in well-located areas with access to amenities and transport routes.

Home sweet home

Where presently there is a shortage of residential property on the market for sale, property owners are likely to hold on to quality assets. However, as rental returns and the possibility of capital gains are more attractive than bank deposit rates, we expect to see a good appetite for continued investment.

The consensus across the investment market-place appears to be that the loss of specific tenant groups such as short-term holiday renters and international students are being offset by returning expatriate Kiwis searching for rental properties, and movement of New Zealand residents seeking employment and lifestyle opportunities.

As these New Zealanders return home and displaced employees move locations in search of job opportunities, Bayleys expects that well-positioned one-bedroom apartments in suburban and city-fringe locations across main centres, as well as three-bedroom homes, will yield the best rental results for property investors over the next 12-months.

This article can be found at the following link:

https://www.bayleys.co.nz/news/residential/where-to-for-property-investors

Tips for Selecting a Property Manager

When selecting the right Property Manager to manage your investment property it’s important that you consider the following factors:

  • That your Property Manager accurately appraises your rental property to ensure you are getting the best return on your investment.
  • That the turn around time to rent your property to quality tenants is fast and efficient, keeping your vacancy period to a minimum.
  • That your Property Manager understands the importance of good service and presentation to attract the right tenant, who in turn will pay the rent on time and respect the property.
  • That your Property Management company knows the importance of thorough tenant screening and also induction processes, to ensure new tenants are well educated on expectations and tenancy laws.
  • That the Property Manager believes that the rent must be paid on time every time and educates the Tenant accordingly.
  • That all repairs and maintenance issues are dealt with promptly and effectively, as they are observed or reported by the Tenant.
  • The property is kept well maintained and that there is a high level of cleanliness at property inspections, and that they quickly follow up any issues with the Tenant.
  • That the Property Manager ensures the property is vacated satisfactorily to a high standard of cleanliness, comparing the property to a comprehensive written condition report and a variety of digital photos taken at the tenancy start.

If you feel your current Property Manager is not providing this service please feel free to contact our team at Connect Realty 0800 333 221. Our business and reputation are built on providing a professional, thorough, and accountable service. If you have a property in Tauranga or other parts of the Bay then we can offer all the management services you need.