Thanks to new legislation introduced over the last few years there has been increasing costs for landlords. As a result, many landlords often wonder if they’re doing the right thing using the services of a Property Manager, and think they can save money by carrying out the service themselves. However, we believe that one of the main reasons for using our services is because of all the new rules and legislation. In fact, in New Zealand the use of property management firms is increasing due to the complexity of owning rental properties.
The Ministry of Business, Innovation and Employment (MBIE) recently published an article on the responsibilities of landlords – MBIE Article. This is a very important article for landlords to read and is a great reminder that rental property ownership is the same as running a business, and like all businesses there are rules and regulations to adhere to. Failure to comply with the rules may result in hefty fines.
In fact, landlords can be fined up to $4000 for failure to comply with the Residential Tenancies Amendment Act 2016. Here are some examples
- smoke alarms are now compulsory in your rental home and you must fit the right type in the right places,
- all your new tenancy agreements must now include an insulation statement disclosing if there is insulation, where, what type and its condition – you must make all reasonable efforts to provide this information so tenants know what to expect,
- you will need ceiling and underfloor insulation, where reasonably practicable, by July 2019, though some exclusions could apply.
One of our services is keeping our landlords informed about current and new legislation, and managing the process of compliance. We use a variety of contractors who are reliable, consistent, and offer value for money. We also carry out regular inspections so items such as smoke alarms can be checked.
We also ensure our landlords are fully aware of their rights and responsibilities. We pride ourselves on managing quality homes to quality tenants, and we have Landlord Insurance available to help protect your investment. We also have market leading software systems that deliver up to the minute reporting so you can have peace of mind that your investment is being looked after.
Our experience is that landlords are less likely to go it alone as soon as they read the new Tenancies Act and get a true taste of what’s required of them. We believe that owning a rental property is not a passive investment and using the services of a property manager is the wisest move.