What Property Managers Can Do For You

House for rent picture to illustrate property manager blog

Use a Property Manager for your investment. Photo/ FreeDigitalPhotos

If you have recently purchased an investment property in Tauranga, Mt Maunganui or Papamoa and don’t want the hassle of finding and managing tenants yourself, then our Property Management service is a great option for you. Connect Realty Property Managers let you enjoy the benefits of property investment without the stress.

Why Use Property Managers?

Buying a residential investment property is the first, and often the easiest, step of property investment. Once you have purchased your new property you then need to ask yourself – are you ready for the trials and tribulations of tenancy?

The process of tenanting a house can be more complicated than people appreciate. Firstly, you must advertise, meet and screen people, to make sure you get the most suitable tenants. Next you have to negotiate your way through contracts, agreements, money transactions and more, to ensure you have an appropriate rental agreement with your tenant. Lastly, there are the property inspections and maintenance work that will need to be regularly carried out to ensure your property remains in the state you bought it.

Sounding too complicated? If you’re not careful, managing your own investment property can turn into a full time job. That is why most people hand the management over to an experienced property management company such as Connect Realty.
Connect Realty property managers have a passion for the business, and provide a high quality property management service to clients.

Connect Realty Property Management Services Include:

  • A free Rental Appraisal on the potential rental value of your property
  • Marketing of your property on four web sites
  • A strict selection process involving stringent screening of tenants
  • Landlord Access Portal software that enables online access for landlords 24 hours a day, 7 days a week, from anywhere in the world.
  • Flat fee rate for landlords with no hidden costs.
  • Regular property inspections using Inspection Manager software to take photos of a property, add comments, and update new information – including any maintenance requirements. This information is then used for ongoing routine inspection
  • And much more.

    Choose Connect Realty

    Connect Realty provide a professional property management service to clients in Tauranga, Mt Maunganui and Papamoa. The are registered with the REAA and licensed and also members of REINZ. They will obtain the maximum returns with minimal expenditure, making sure your investment is not under rented. In fact they are so confident that you will appreciate their service that they offer a “3 month money back guarantee” if you are not completely happy.

    So call them today to get the most out of your property investment – 0800 333 221

    Investing in a Bay Of Plenty Property

    Despite current housing issues in New Zealand, residential property investment remains a popular option for people looking to secure their financial futures.

    cartoon image of house with investment graph

    The most important calculation in Property investment is what return your property will give you, in other words its “yield”, which measures the future income stream of an investment.

    An investment Property’s “yield” measures the property’s income earning potential on an annual basis and does not relate to the capital gain of a property. Yield is usually calculated by multiplying the annual weekly rent by 52 (weeks of the year) and then dividing this number by the purchase price.

    For example, if a property cost $300,000 and was expected to be rented for $350 a week:
    $350 x 52 = $18,200 / 300,000 = .0606 or 6.1%.

    6.1 % is the yield for this property.

    Of course this number does not take into consideration insurance, maintenance, property management fees, rates etc. However, it is a useful measure to compare the different investment properties you may be considering.

    Once you have an acceptable “yield”, you can then take a closer look at the cash flow forecast and any potential risks. Some investors like to buy houses with a low yield but which are capable of improving. This can increase the property’s capital gain and allow them to increase rents and therefore increase the yield.

    If you are considering investing in housing in the Tauranga, Mount Maunganui and Papamoa area, you would be wise to read the ANZ Monthly Property focus for housing trends and data. This monthly publication provides an independent appraisal of property market developments such as housing trends, interest rates, and the demand Vs supply of housing in New Zealand.

    Housing affordability figures are also released in The Regional Economic Activity Report 2014, published by the Ministry of Business, Innovation and Employment.

    Other interesting sites to check before buying your property are the Real Estate NZ website, which publishes a monthly Property Report, and the Real Estate Institute of New Zealand (REINZ), which also releases a monthly Residential Market Report.

    Current data suggests that if you are in a financial position to purchase an investment property in the Bay of Plenty – you will have an easy job of finding suitable tenants for your property. This is due to a housing supply shortage and the fact that most renters are currently unable to afford to buy a home.

    Once you purchase an investment property, call Connect Realty Property Managers for your free rent appraisal and Property Management service. We have many tenants looking for quality homes to rent in the Tauranga, Mount Maunganui and Papamoa areas.