Best candidate for a rental property image for connect realty property managers blog

How To Be The Best Applicant For A Rental Property

Best candidate for a rental property image for connect realty property managers blog

Ever wondered why some people find it easier to get a rental property than others?  At Connect Realty we pride ourselves on managing quality properties across Tauranga, Papamoa, and Mt Maunganui, and having quality tenants in them.  That means we vet all potential tenants to make sure we find the right candidate for the homes we manage.

If you are finding it difficult to get accepted by rental agencies or keep missing out on the best homes available, then we have some top tips that may just help.

Referees

Property Managers and landlords like to see references. Make sure you choose referees who are in respected positions (e.g. landlord, employer, community group leader). Friends or family, no matter how much they love you, do not make good referees.  We recommend getting a reference every time you vacate a home and keep these for each new landlord or property manager to see.  Provide contact details and make sure they know they may be called.

Pets

Having a pet means you will be limited in which properties you can rent.  If you don’t have them already then we recommend not getting a pet as it makes it very hard to get a property.  The main reasons are potential damage from accidents inside, pet fur and/or hair in carpet and mess they can cause around the outside of a property.  Even if your current landlord is ok with pets, your next one may not be so keen.

Smokers

We recommend that you consider quitting.  There are few landlords or property managers who are happy to place tenants in a home when they are smokers.  Smoking inside properties causes lots of problems, especially smell.  There are free online quit programmes that can help you, and local support groups as well.  Some apartment complexes also ban smoking from balconies and decks.

Appearance & Attitude

The saying goes you can tell a lot about a person by the way they present themselves.  If you want to impress property managers or landlords then we recommend you turn up on time, dress nicely, and be honest.  Property managers and landlords are busy people too, they don’t want to wait around for applicants who don’t show the courtesy of showing up on time.

At Connect Realty we strive to be open and honest to all applicants and tenants, and if we suspect you are not telling the truth we will not rent to you. So be open and honest during the application process.  Provide all the information you are asked for.  The more thorough you are, the more seriously your application will be considered.

We also recommend that you ask questions.  The rental relationship has to work two ways.  You need to be able to communicate with the landlord, and they with you.  If you ask questions you will both be able to better assess how that relationship might go.

If you’re looking for a rental property in Tauranga, Mount Maunganui or Papamoa then have a look through our properties for rent tab on our website – https://www.connectrealty.co.nz/properties-for-rent.  If you see a property you are interested in viewing please phone for the address.  We will walk you through our application process from there.

Customer Service Key To Successful Property Managers

A recent article in ‘news.com.au’ highlighted the importance of consumer relationships and customer service in the real estate industry. While Australia is weathering a property downturn, their Real Estate Institute revealed that hard work and maintaining a high reputation is helping property managers through a difficult period.

A survey sent out to institute members showed that there was a real focus on customer service including follow-up, connecting with people and establishing a personal and agency reputation.

This focus had improved their reputation for honesty, integrity, professionalism, a community focus and local knowledge.

Key skills were hard work, self-drive and extended working hours and taking the time to build relationships in their community.

We at Connect Realty understand the importance of our relationship with you the client, and our focus is to provide you with “superior” customer service. As property managers, we aim to take all the stress away for both landlords and tenants with renting a property and make sure everything runs smoothly and seamlessly.

Also, as a locally owned and operated business we have a wealth of local knowledge, combined with extensive real estate and property management experience. Through this experience and local knowledge, we have developed an intuitive understanding of what you require and we aim to build a long-lasting relationship with you.

Besides an up-to-date website, Facebook page and a free-phone number, we also provide our mobile number for an easy point of contact. With our professional efficiency, we will go out of our way to talk or meet with you at all times of the day.

As the Australian Real Estate Institute highlighted, hard work and strong communication with clients are key to success, and they are the cornerstones of our business that we will continue to focus on in the future.

Why Use Property Managers

It has been an interesting year for landlords with new legislation and differing housing markets across the country.  Given the uncertainties that exist for property investors, there is even more reason to utilise experienced local property managers when buying an investment property. Here are some key reasons why you should choose Connect Realty as your Tauranga property manager:

  1. We know the area well.  With our local Tauranga knowledge and many years of property experience, we can ensure you are getting the best return for your investment.
  2. We specialise in property, we know and understand the new legislation and have access to all the necessary documentation that is required for both landlords and tenants.
  3. We offer free appraisals and advice on where and what to buy.
  4. We market your property for you, taking away the stress of dealing with internet listing issues and enquiries.
  5. We have one flat rate that includes everything, with no hidden costs or commissions.
  6. With market-leading software systems, we deliver up to the minute reporting.
  7. We inspect the property every three months and provide comprehensive inspection reports so you know exactly what state your property is in.
  8. We are the main contact for both tenants and landlords.  This helps keep the line of communication open.
  9. As well as regular property inspections, we also organise all maintenance and repairs with a team of dedicated contractors working for us at competitive rates.
  10. We strive to provide you with a property management service of unbeatable quality, and we are happy to offer a 100% money-back guarantee if you are not happy after the first three months of management.

If you have a property you would like to rent we would love to hear from you.

Boom Time In Tauranga

connect realty blog tauranga crossing mall

Tauranga is continuing with its housing and economic boom.  As an example, in the last month Tauranga’s newest mega-mall opened its doors to 1000 employees.  The mega-mall has 45 new stores, 17 restaurants, and a stunning 800-seat cinema. This is stage two of the $150 million development.

Tauranga Crossing opened its doors with an outdoor town centre and The Millyard dining precinct in August 2016. The lifestyle centre opened in 2018, bringing some of New Zealand and the world’s large retail stores to the area. The first part of our fully enclosed shopping centre opened in October 2018.

On completion, the 47,000sq m shopping complex will house up to 70 fashion, general merchandise, and service retailers.  Some of the big names of the fashion industry can already be found at the mall including global fashion retailer H&M, Decjuba, Pagani, Cotton On and Bras N Things.

When finished a two-level centre galleria and dining area will include 29 restaurants and eateries.  The Event Cinemas in the entertainment precinct will feature an 800-seat cinema with Vmax screen, full recliner chairs and double daybeds!

Tauranga Crossing is set to become the region’s ultimate retail destination. Designed with Tauranga’s celebrated sunny climate and lifestyle in mind, it’s a relaxed yet comfortably stylish destination to shop, eat and play in the bay. Check it out today – https://www.taurangacrossing.co.nz/

Capital Gains Tax Update

an update on capital gains tax by connect realty

Capital Gains Tax Update

The New Zealand Government created the Tax Working Group to consider the future of tax.  Chaired by former Finance Minister Hon Sir Michael Cullen, it will provide recommendations to Government that would improve the fairness, balance and structure of the tax system over the next 10 years.

It sought input from a diverse and wide range of New Zealanders and ran a two-month public consultation between 1 March and 30 April 2018.

In September 2018, the Tax Working Group released an interim report.  The report identified a list of asset classes that are not already subject to tax and that included houses excluding the family home, “Capital gains from these assets would be included in the tax base,” it said.

Labour coalition partner NZ First has yet to comment on whether it would support legislation enabling a capital gains tax.  It is acknowledged by many experts that a capital gains tax would add huge complexity to our relatively simple tax system, though some economists believe it may improve housing affordability.

Final recommendations from the Group will be out on Thursday and industry groups, lobbyists, iwi authorities, financial experts and institutions are gearing up to react.  We will bring you an update in our March blog.

To read the Tax Working Group reports visit their website – https://taxworkinggroup.govt.nz/

The latest NZ Herald article is copied below, or read online here https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12203299

Capital gains tax debate heating up: final recommendations out on Thursday

A capital gains tax would “add huge complexity to one of the world’s simplest tax systems” according to an Auckland-based investment expert, but a chief banking economist disagrees and backs its introduction.

Paul Glass, executive chairman of Devon Funds Management, said he was initially in favour of a CGT “but the more you look into it the less appealing it is” so he now opposes it.

But Dominick Stephens, Westpac chief economist, backs a CGT: “It would improve housing affordability, lead to a higher rate of home ownership, help remove the heavy skew we have towards land-based investments, and eventually lead to a more diverse national balance sheet. It would also improve incentives to engage in paid work if income tax was reduced.”

Final recommendations from the Tax Working Group will be out on Thursday and industry groups, lobbyists, iwi authorities, financial experts and institutions are gearing up to react.

The group, chaired by former finance minister Sir Michael Cullen, released an interim report last year which said it had “identified a list of asset classes that are not already subject to tax” and that included houses excluding the family home. “Capital gains from these assets would be included in the tax base,” it said.

Glass said that superficially, CGT sounds fairer, would aim to rebalance the economy away from assets and towards incomes and capture windfall profits when realised like land re-zoning.

“But it would add huge complexity to what is currently one of the world’s simplest tax systems, would result in a massive industry – as happens elsewhere in the world – advising on tax and minimisation structures, wouldn’t bring in much additional money, would fall heavily on the upper-middle because the very wealthy are very good at structuring their affairs and would be a real productivity burden with every business decision needing to be weighed up with a CGT lens,” Glass said.

The actual base for taxation would be small because the family home would most likely be exempt and that is about 42 per cent of New Zealanders’ assets, Glass said.

“We already have a progressive tax system whereby 40 per cent of households pay no net tax after transfers. The top 3 per cent pay 24 per cent of all tax received. The top 10 per cent of households pay 70 per cent of net tax,” Glass said.

Last week, EY global chairwoman of tax Kate Barton said New Zealand’s lack of a capital gains tax was “unusual” although in the United States, the system was quite complex.

Stephens says property is more lightly taxed than other forms of investment. Treasury and the Inland Revenue estimate that property investors pay 29.4 per cent of their after-inflation returns in tax, whereas bank depositors and owners of dividend-paying shares pay 55.7 per cent.

Andrew King, NZ Property Investors Federation executive officer, opposes CGT, claiming property is “taxed more heavily than other assets with a higher marginal effective tax rate because of local government rates.”

Kelvin Davidson, CoreLogic’s senior property economist, says all eyes are on this Thursday.

It seems all but certain that CGT, excluding the family home will be recommended, but there are plenty of uncertainties around the exact form of it, he says.

“Will it be a traditional CGT, when you pay a one-off lump sum when you sell, or will it be an annual charge on the assumed/theoretical income that your asset is generating?” he wonders.

Perhaps the biggest debate is around the tax rate – a person’s marginal income tax rate would seem to be a high rate to impose, he thinks.

“Whatever the details, the Government still has to accept the recommendations and then survive the next election, so none of this is a done deal. A CGT would certainly change the economics of property investment, dampening liquidity – after all, as an owner, you’re going to be less inclined to sell if you face a CGT liability. We already have a capital gains tax, via the brightline test,” Davidson said.

SNAPSHOT ON CGT

  • Paul Glass, executive chairman of Devon Funds Management: “CGT would add huge complexity to one of the world’s simplest tax systems.”
  • Dominick Stephens, Westpac chief economist: “CGT It would improve housing affordability, lead to a higher rate of home ownership, help remove the heavy skew we have towards land-based investments.”
  • Andrew King, executive office, NZ Property Investors Federation: Opposes CGT because landlords already pay extra tax via council rates.
  • Property Council: “CGT tends to be sub-optimal in terms of their coverage and ability to be a viable and stable revenue source. But there is a strong equity (fairness) rationale for the introduction of a CGT in New Zealand.”
  • AMP Capital Investors: “Introduction of a broad-based CGT is the obvious missing component of our tax system.”
  • EY: “If the Government has concerns regarding all forms of capital investment, [we recommend] considering a broad-based CGT. One of the key criteria by which we should assess our tax system is through equity and fairness. Our current tax system focuses heavily on taxing income. However, income is not the only or major source of affluence for many New Zealanders.”
  • Federated Farmers: 81 per cent of 1393 survey respondents oppose CGT. Farmers would quit the industry, CGT would make work for accountants and lawyers and create issues with inter-generational family farming operations, respondents said.
  • DairyNZ: “Introduction of a comprehensive CGT presents significant challenges, both in transition and practical implementation.”
  • Craig Stobo, company director: “New Zealand already has a CGT. However, it is not comprehensive and there are concerns about how to consistently enforce it.”
  • Waikato Tainui: “Any new asset/wealth taxes, including any CGT or land tax, must exclude all Waikato-Tainui whenua and other taonga and all raupatu and other Tiriti settlement assets including post-settlement right of first refusal assets acquired from the Crown.”
  • Taxpayers’ Union: “Taxing capital should be approached with great caution in the specific New Zealand context. New Zealand’s economy suffers from shallow capital markets and allow productivity, contributing towards a low wage environment. A CGT would likely make that worse.”