Top 4 Questions Landlords Ask Property Managers

Top 4 Questions Landlords Ask Property Managers blog title with image of house for connect realty

 

We have been in the Property Management business for many years, and over these years there have been some key questions that we get asked regularly by landlords and property investors.  So to make it easy for any potential investor or new Landlord, here are the top four questions we get asked:

1. What are your fees?

At Connect Realty we like to keep things simple by using one flat rate.  Traditionally other companies may charge you commission on: maintenance work, monthly admin fee, attending mediations, payment of insurance, completing inspections, payment of rates, advertising packages, credit checks, attending tribunal and payment of body corp fees.  Our rate includes everything and there are no extra fees for any of the above!

2. How Much Will My Property Rent For?

We offer a free Comparative Market Analysis report on the potential rental value of your property. Given our many years of experience in real estate and property management in the Bay of Plenty we know the market inside out.  We can advise you on current rentals for your property type and area.  Our experience has proven invaluable to our Landlords.

3. How Is Maintenance Handled?

We arrange regular planned maintenance, such as minor repairs and preventative maintenance, to minimise problems and ensure your property remains in peak condition.  To carry out this work we use a variety of contractors who are reliable, consistent and offer value for money.  Quotes can be obtained for most maintenance.  Clients can also stipulate a maintenance spending limit or choose to have no maintenance carried out without their approval.  In this case clients will be contacted for all maintenance issues.

The types of renovations, repairs and maintenance that should be carried out can generally be classified as urgent, short term and long term maintenance. Generally urgent and short term issues are those day to days issues which are essential for health and safety and to comply with provisions of the residential tenancies Act.

Long term issues are not considered urgent and clients can address and plan for these at some stage down the line, often between tenancies. These issues are generally communicated to clients after inspections.   Addressing these issues makes the property more tenantable and often improves the likely weekly rent. These issues might include replacing vinyl and carpet which may be damaged or old, repainting the home in attractive colours or patching a wall or room.

Our flexible property management service allows clients to have an agreement with us in advance with regards to who organises what maintenance when it is necessary.  This means you will always know where you stand and you will not have unnecessary costs that you were unaware of.   

4. How Do You Market My Property and How Soon Will It Be Rented?

Our marketing plans includes promoting your property on the main real estate websites www.trademe.co.nz and www.realestate.co.nz and our own website www.connectrealty.co.nz .

The average timeframe to secure tenants is 14-28 days. When tenants vacate they are required to give a minimum of 21 days notice and we begin marketing for new tenants immediately.  The majority of properties we manage have new tenants secured before existing tenants have vacated.  This is especially true in today’s market where there is a shortage of quality rental properties.

 

Hopefully these answers will help you with those key questions.  For any further property investment advice and/or information about the services we offer as Property Managers please call our office 0800 333 221.  We are always here to help.

Predictions for Tauranga Rental Prices For 2018

photo of tauranga for predictions of rental prices in tauranga connect realty blog

 

A question we often get asked, by both tenants and landlords, is will rents rise in the coming year?  The simple answer is yes, they will.  Here are some of the reasons why:

As you would have read over summer, Tauranga, just like Auckland, has a serious rental shortage, especially quality rental homes. The shortage is a simple case of supply and demand.  Our region continues to attract record numbers of new ‘migrants’ to our suburbs, but due to lending restrictions, increasing mortgage rates, and a significant increase in house prices, it is difficult for many of these people to buy a home in Tauranga.  Therefore, many families moving here are looking for short or long term rentals.  Their search is made even more difficult because many existing tenants are choosing to stay in their rentals long term, knowing that quality rental properties are hard to come by.  So the usual demand for quality properties is exacerbated by increased migration and fewer home buyers, and this situation will unlikely change in the foreseeable future.  

Other factors leading to rents rising include lending restrictions on investors and the new Government changes around rental property compliance.  The Labour Government will also be cracking down on so-called ‘negative gearing’, where costs such as interest payments on a residential investment property can be used to offset tax owed on income from other sources.

Additionally, over the last few years there have also been extra costs for landlords such as rates and insurance increases,  and costs associated with drug testing of properties.  These factors, combined with more landlords exiting or choosing not to enter the market, means demand is high and supply is low, which leads to increasing rental prices.

Of course rising rents isn’t something new, the Trade Me Rent Price Index (a monthly analysis of the rental property market across NZ) shows that between December 2016 and December 2017 average rent rose 7.3%  in the Bay of Plenty.  However tenants shouldn’t be alarmed, as per our tenancy contracts, rent cannot be increased for 180 days from the start of the tenancy and a landlord is required to give 60 days notice of any increase in rent.  Usually rent increases for our tenants are small and gradual.

If you are a Landlord in this turbulent property market, we are happy to discuss your options for a long-term strategy.  Having the right plan and processes in place will to enable you to get through the next few years’ challenges and come out the other end in a stronger position. Remember, property investment is a long game and short-term losses or gains should form part of your overall long-term strategy.

For any other rental investment advice please phone us for a chat, we are happy to work through any questions you have and we offer free rental appraisals for landlords.