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Why You Should Use A Property Manager

connect realty tauranga property manager blog image of mount apartment

 

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.

 

Connect Realty Blog image for Four Tips To Make Your Rental Property More Inviting

Four Tips To Make Your Rental Property More Inviting

Connect Realty Blog image for Four Tips To Make Your Rental Property More Inviting

Some property investors make the mistake of thinking that every house they buy will be snapped up for rent, but this doesn’t always happen.  Your property may look old and tired, seem cold, or it could lack street appeal.

Fortunately, there are several things you can do to your rental property to increase its rent appeal:

Update Bathrooms and Kitchen

An ugly, outdated bathroom and kitchen makes a house unappealing and will pull down your rental property’s value in the long term. By updating key items such as vanities, bench tops, cabinets and fixtures your property will look modern, fresh, clean and more attractive to potential tenants.

Renovations don’t have to be expensive.  We often share blog posts from interior designers, decorators and inspiring renovation tips from around the world that don’t involve a lot of money.  Think a coat of paint on the walls or cabinet doors, new retro or modern fixtures and handles and a colourful splash-back for the kitchen. Google ‘Update your kitchen/bathroom on a budget’ to get inspired.

Insulation

Good quality, well installed insulation is a necessity in all homes, and a real advantage when renting out a property.  Good insulation will make it easier and cheaper to heat your rental house properly, and more comfortable and healthy for tenants to live in.   Conversely, sub-standard insulation can result in your property becoming damp and attracting mould.

There is funding available for older homes and if your main tenant has a Community Services Card. To find out if you qualify for any government assistance you will need to contact an insulation service provider in your area. Some local councils and banks also have payment options available to help with the cost of installing insulation and heating.

If you are considering the DIY approach, everything you need to know about installing insulation can be found at this link New Zealand Standard NZS 4246:2006 Installing insulation in residential buildings. It’s easy to follow and it’s free to download.

Also consider quality window coverings, such as thermal lined drapes, if your home is an older home.

Heating

Choosing an efficient heating system for your rental property is important for your tenants and also for future re-sell value of your property.

There are lots of heating options for homes, from wood burners and pellet burners to heat pumps and panel heaters.  It’s important to match the size of the system to the space that needs heating and to consider all rooms in the house.  While some heating solutions will have a larger outlay at the beginning they will also add considerable value to your property in the longer term.

If your home provides modern efficient heating you are more likely to attract a quality long-term tenant for your property.

Curb appeal

It’s important to make a first impression. If the outside of your rental property is overgrown and/or dirty in any way potentially great tenants may just walk away.  We recommend you tidy your section before renting out your property e.g. mow and edge your grass, pull out weeds, fix any broken or damaged exterior fixtures, paint tired looking doors or outside areas, and make sure the shed is clutter free.

Most property owners use a property maintenance company to mow the lawns etc, this can be factored in when doing your rent appraisal.

The above tips can increase your chance of renting out your investment property and boost your property’s value.  For more property investment tips and advice call or email Chris atConnect Realty today.

 

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

    A Response to Frank Newman’s “Perils of being a Landlord” Article

    landlord handing over key

    Frank Newman recently wrote an article in the Property Plus magazine titled “ Perils of being a Landlord”. Here he outlined what he, and others, consider are the common complaints or frustrations from landlords. We have included that article below.

    We agree that being a landlord can be incredibly frustrating, and that is why we offer our Property Management service to landlords and tenants. By taking away some of the ‘frustrations’ like collecting rents, property viewings and regular house inspections, we hope that our Landlords’ experience will be a positive one. Read some of our testimonials to see how we can make a difference Connect Realty Testimonials.

    If you are considering buying a rental property, or have an existing property you wish to rent out, call us today for more information about the Landlord services we offer, we guarantee your experience will be a positive one.

    Here is the Frank Newman Article:

    Perils of being a Landlord, with Frank Newman

    The term Land-lord has an aristocrat resonance about it. The reality is there is nothing easy about being a landlord. For most it’s a rude awakening into aspects of human behaviour that most prefer not to associate with. The NZ Herald (Diana Clement, 3 May) ran an interesting article recently about the perils of being a landlord. Here are some key points.

    The most common complaints or frustrations from landlords were:

    • Not getting paid! In 2013 there were 45,093 applications nationwide to the Tenancy
    Tribunal. 41,496 or 92% were from landlords. The other 8% (3,597) were filed by
    tenants. Most of the applications filed by landlords were for rent arrears (61%).
    Given there are about 500,000 rental units in New Zealand, in any one year one in 18
    (about 6%) suffer arrears that are significant enough to warrant the matter being
    referred to the Tenancy Tribunal.
    • Prospective tenants not keeping appointments to view the property.
    • Smoking in the dwelling even though the tenants have accepted a non-smoking
    condition of tenancy (and then they no doubt moan about the cost to have someone
    clean the tar from the ceiling and walls!).
    • Keeping pets in a pet-free property. One property owner describes it this way.
    “Turning up to a property that you’ve let in pristine condition to find dog sh*t all
    over the yard, dog hair inside the house embedded in the carpet, scratch marks over
    the interior and exterior doors, a pervading smell of dog inside the property and
    burnt patches of grass where the dog has been peeing tends to make one think long
    and hard before re-renting to dog owners.”
    • Tenants who claim to have paid the rent but haven’t. This shows the importance
    of providing receipts if rent is paid in cash (which is suspicious in itself as they may
    be using your premises to operate a “cash” business).
    • Tenants who sublet the property without the landlords consent.
    • Exceeding the maximum number of people permitted to live at the property, causing
    overcrowding and additional damage.
    • Tenants leaving piles of rubbish and belongings when vacating.
    • Tenants who don’t report problems, like leaking pipes and fittings that damage
    kitchen cabinets and floors. A lot of damage can be done between inspections.
    • The problems often continue once the problem tenants have gone. Enforcing debts
    after judgement is hugely bureaucratic, often with little to show for it or repayment
    in small amounts over a very long time.

    One does not have to be Einstein to work out that the problems within the rental sector are to do with bad tenants rather than bad landlords. It’s an issue that could be sorted if the regulators that are so keen to come down hard on landlords, came down hard on tenants.


    Read the full article here

    Introducing Inspection Manager – A New Way Of Reporting

    Connect Realty are proud to introduce a new practice into our existing property management service. We are now using Inspection Manager as part of our service for Landlords.

    Inspection Manager

    Inspection Manager has been developed to work as part of our existing property inspection process. The integration of Inspection Manager will see our process streamlined further, automating our property and inspection service, and enabling us to update information quickly and easily.

    For example, inspections will be done with an iPad or iPhone allowing us to take photos of a property, including any maintenance requirements, these will then be synced to our property management software system on a CMS and used for ongoing routine inspection. Using an iPad or iPhone rather than a camera allows us to add comments to the photos, easily update property layout if there has been alterations, and update any information about the property that may have changed since the last inspection.

    All property inspection information will be held on the individual property file in a secure system, allowing easy access, and enabling us to send out routine inspection information by email to the respective owners to give an accurate report on the current condition of their property. This report will include photos of each room in the house as discussed above.

    Connect Realty is pleased to be using Inspection Manager as it is making our reporting more detailed, accurate and efficient, and as a result Landlords will receive a more comprehensive and detailed property report.

    Call us today if you would like to know more about out Property Management Services 0800 333 221, or read more about our services on our website: Connect Realty – Services We Offer