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Tauranga Property Investors Urgently Required

Mount Maunganui from Pilot Bay

 

 

The official start of Summer is only a couple of weeks away and once again the Bay is ready for a summer full of events and visitors. Even though we don’t have the annual cruise ships this year, there a many Kiwi’s exploring the country and we expect lots of these local tourists to explore our amazing Region.

As we have spoken about in previous blogs, rental properties are still in short supply in the Bay area (this includes rental properties in Tauranga, Mount Maunganui, and Papamoa areas). We have many fantastic tenants waiting for their ideal home, this includes houses, units, and apartments both furnished and unfurnished.

With low-interest rates now is a great time to think about property investment and a great time to rent out that bach or second home that doesn’t get used as often as you would like. The returns on investment are excellent, and with our flat-rate Property Management fee, we can guarantee what your rental return will be. Furthermore, we have a strict selection process for screening tenants and we have regular comprehensive property inspections using the latest property management software.

If you choose to use us as your Property Managers, we have a secure Landlord Access Portal that you can access anytime from anywhere. This portal will provide you with tenancy information, from income and expenditure reports to tenancy details, at any time.

Our expertise includes over 20 years of real estate knowledge for the Bay area. We are a privately owned and operated business and we pride ourselves on our fantastic and friendly service.

So, if you have a property you would like to rent, or if you are considering becoming a property investor in the Bay area, give us a call today. We can walk you through the steps of what you need to do, including any legal requirements, discuss rental returns, and set you up with the perfect tenants as soon as you’re ready!

Freephone 0800 333 221

Outdoor Space – Why It’s Important For Rental Properties

Connect Realty Tauranga Property Management Blog outdor space for rental property tenants

We all love the outdoors in New Zealand, and outdoor living is often a key driver for people moving to the Tauranga region.  Here in the Bay of Plenty we have surf beaches, picturesque harbours, long stretches of white sand beaches and more, all adding to the attraction of coastal living.  But it is not just the open outdoors that are important, many rental property tenants also look for a home with their own private outdoor area.

At Connect Realty Property Management we have tenants looking for a range of outdoor areas including large backyards, small low maintenance gardens, apartments with a terrace, BBQ areas, or even just a small area to entertain friends on a summer’s evening.

What many landlords don’t realise is that the outdoor space of a home or apartment can help rent the property, or it can spoil the deal.  While indoor layout and amenities are important, outdoor space is just as significant to many people.  This is especially true in the Tauranga region where our climate suits outdoor entertaining.

From our experience as property managers, outdoor space needs to be easily accessible, sheltered, and preferably easy to maintain.  Well kept gardens that are low-maintenance are the best for properties with large sections.  Examples are bark or stone gardens, shrubs and bushes that don’t require watering or pruning, and easily mowed lawns.  For apartments and flats we recommend providing an outdoor space for a BBQ and room for a small table and chair set.  Small garden boxes can also make a single story or downstairs apartment/flat look more appealing to potential tenants, along with suitable outdoor lighting.

The key is to make sure your property’s outdoor area is attractive and functional.  For some homes this may require alterations such as adding a ranch slider or French doors to connect outdoor space to the home.  Other more simple changes include adding pavers where there will be the most foot traffic, or defining paths by adding railway sleepers and stones or gravel.

We also recommend that you clean outdoor areas before we advertise your property.  Water-blast footpaths, walkways, patios and decks.  Fix broken trellis, reapply grout where needed, remove or prune foliage that blocks sunlight on the house, and remove plants that require a lot of maintenance such as roses.  These simple fixes require minimal investment but can generate maximum returns in rental price and in real estate value in the longer term.  We have a number of ground and maintenance people on our books and can provide quotes for any work you need done on your rental property.

If you require more advice about how to improve the curb appeal of your rental property, or any other rental property investment tips, then call Chris at Connect Realty Property Managers.  Chris has many years of real estate experience and is an expert on all matters about property management in the Tauranga Region.

Capital Gain and Top Rental Returns in The Bay of Plenty

Since our last blog, two more articles have featured in the Bay of Plenty times regarding the current property market trends in the Western Bay of Plenty.  As discussed in previous blogs, the current rental shortage is pushing up rental prices in many areas of Tauranga resulting in fantastic returns for landlords, and the current shortage of housing is also resulting in a capital gains increase for the area.

In the article “Top returns on rental homes in city suburbs” they highlighted the great returns landlords are getting for properties in the Hairini, Welcome Bay and Greerton areas of Tauranga.  These areas are all popular with families and those needing easy access to main commuting routes.  In some of these areas rents have increased nearly 10% because of the rental shortage.

The Westpac Property Investor Report (September 2014) quoted in the article names Tauranga’s top 5 suburbs for gross yield returns as shown in this table:

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Gross Yield
Hairini House (3 Beds) $350 $264,000 6.9%
Tauranga Apt/Flat (2 Beds) $272 $246,000 5.8%
Greerton House (3 Beds) $330 $310,000 5.5%
Mount Maunganui Apt/Flat (2 Beds) $331 $311,000 5.5%
Welcome Bay House (3 Beds) $350 $332,000 5.5%

The article also discussed the capital gains property owners are seeing for many of these areas.  The same Westpac report outlines these top 5 suburbs for capital gains returns:

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Capital Gain
Bethlehem Apt/Flat (3 Beds) $315 $335,000 5.3%
Greerton Apt/Flat (2 Beds) $272 $300,000 4.6%
Otumoetai Apt/Flat (2 Beds) $275 $286,000 3.7%
Mount Maunganui House (3 Beds) $375 $455,000 3.6%
Mount Maunganui Apt/Flat (2 Beds) $331 $311,000 3.6%

The second article Value of Bay properties up in ‘cheaper’ areas focused on the latest QV data which also shows that the average value of properties in Tauranga and the Western Bay has increased in the past 12 months, with some increasing in value by more than 5 per cent.

This article showed Pukehina had the highest increase at 9.3 per cent, followed by Matua, 6.9 per cent, Te Puke, 6.8 per cent, Mount Maunganui, 5.7 per cent, and Greerton 4.3 per cent.

Overall Tauranga was one of the best performers in the latest QV data, with values up 0.8 per cent in the past three months and 5.1 per cent year on year.  As previously discussed, many people form Auckland are taking advantage of the cheaper property prices and better lifestyle in Tauranga and the Bay, driving up demand for all types of housing in these areas.

So now is a fantastic time to invest in a Tauranga rental property. With great returns and a capital gain combined with the services offered by Connect Realty Property Managers, you can enjoy a stress free investment.

If you wish to discuss any of the figures outlined in this blog, or the quoted articles, please call Chris in our office. She would be happy to talk about possible rental returns for your investment property, real estate trends in the Bay and more.