You are here: Home / Archives for rentals

Selecting a Property Manager

March 31, 2010 By rentals Leave a Comment

Image of man trying to make a decision

Selecting a property manager

The nature of the relationship

Contracting someone to manage your residential property is like using an accountant or lawyer to manage your business affairs.

Many landlords expect their property manager to receive rent on their behalf, find suitable tenants, handle maintenance, and deal with disputes and termination issues. In essence, the property manager becomes the landlord’s agent, looking after their investment.

Selecting a property manager

When selecting a property manager, consider asking the following questions:

  • What are your qualifications?
  • Are you a specialised property manager or a real estate agent who also does property management?
  • How long have you been a property manager in the area?
  • Do you personally invest in the area?
  • How many staff do you have?
  • Are you affiliated with any particular professional body with a code of ethics?
  • What are the roles of your staff? Do you have staff specifically responsible for finding good tenants?
  • What resources do you have for managing property over holiday periods?
  • How many properties does your business manage, and what percentage is currently vacant?
  • What is the average length of time it takes to fill a vacancy in the area?
  • What computer system and software do you use?
  • May I see an example of a monthly reporting package?
  • Have you appeared in Tenancy Tribunal cases? If so, what happened?
  • What kind of insurance coverage do you have? Is there any fidelity fund coverage?

Also consider:

  • How close is the property manager’s business to your property?
  • How organised and tidy are their offices?
  • Do they present themselves professionally?
  • What does their website look like? Is the content consistent with what they say when you meet them?

Contractual arrangements

Take time to carefully check and agree on the property manager’s responsibilities. You need to agree on all terms and conditions and clarify any queries at the outset to avoid problems later. You should always record your understanding in writing.

When developing the property management agreement, consider the following:

  • What fee structure will they charge? Does it fall within the average of 7.5 – 8.5 percent fee on rental received? What other costs does the manager expect you to pay in advance?
  • How often will they report to you? What is included in the report? What is the format of reporting? Do they offer online services?
  • How will the property be marketed to attract tenants? Who pays for marketing costs?
  • What does their tenant selection process include?
  • What facilities do they have for dealing with tenant issues, and any questions or emergencies outside office hours?
  • Will they provide market rent information? Will they alert you to the need for a rent review as part of their monthly reporting services? Will they have sole discretion to impose a rent review or will they need your approval?
  • How often will they inspect the property?
  • What process do they follow when a rent payment is late?
  • Which kinds of maintenance tasks are handled by the manager in-house?  Which tasks require outside contractors? Can they show you a list of preferred or accredited service providers for maintenance work?
  • What is their process for getting quotes for maintenance and repair work?
  • How do they provide contractors access to the property during the tenancy?
  • Upon termination of the tenancy, how do they manage bond refunds and property inspections?

This excerpt is from the Department of Building and Housing website. Visit their website for more information www.dbh.govt.nz

Post to Twitter

Filed Under: For landlords Tagged With: , , ,

A New Tenant’s Checklist

March 31, 2010 By rentals Leave a Comment
New Renters Check List

New Renters Check List

Welcome to renting!

When you are looking for a new place to live, there can be a lot to organise and remember. Asking the questions below will help you choose the place that’s best for you, your budget and your lifestyle.

The second page covers things you should do when you find the right place – completing the tenancy agreement, property inspection report and bond lodgement form with the landlord, and also things to do before and after you move in.

Property address: Weekly rent:
Landlord name: Bond required:
Phone:
Email:

Questions to ask:

  1. When is the property available?
  2. Is it a fixed-term tenancy or a periodic tenancy?
  3. Is the property fully furnished?
  4. What whiteware (eg, washing machine, refrigerator, microwave, etc) is included?
  5. Is it close to transport? Shops? University?
  6. How many people are allowed to live in the property?
  7. Does the property get morning or afternoon sun?
  8. How secure is the property? Are there deadlocks or an alarm?
  9. Who is responsible for mowing the lawn?
  10. Is there a garage or on-street parking?
  11. Is it OK to smoke inside?
  12. Are pets allowed?
  13. What’s the neighbourhood like?
  14. Does the landlord have any references?
  15. What is the best way to contact the landlord?

Found the place that’s right for you?

Make sure you and your landlord:

  • complete a thorough property inspection and note any damage in the property inspection report (part of the tenancy agreement)
  • complete a tenancy agreement, write in any conditions that you both agree on, and each keep a copy
  • complete and sign the bond lodgement form
  • organise how you will pay the rent (eg, automatic payment or direct debit)

You might also want to ask your landlord to complete a Contact details for the landlord information sheet (available at www.dbh.govt.nz). This sheet records contact details for your landlord and an alternative person. I t also asks for contact details for tradespeople.

Your landlord must lodge the bond with the Department of Building and Housing. You will receive a letter from the Department after your bond has been lodged.

Before you move in

  • Purchase contents insurance that includes tenant liability.
  • Find out when rubbish and recycling is collected.
  • Connect the gas, electricity and phone.
  • Tell your doctor, dentist, workplace, gym, bank, children’s schools, friends and family that you are moving.
  • Organise your mail to be redirected by the post office.

After you move in

  • Know your rights and obligations – read the Department of Building and Housing tenant guide What to do when you’re renting.
  • Check that your bond has been lodged with the Department of Building and Housing.
  • Keep all records – especially your tenancy agreement, inspection report and bond lodgement letter.
  • Keep records of payment such as rent receipts, bank statements and invoices.

Like some more help?

Ask the Department of Building and Housing if you are unsure of anything – call 0800 TENANCY (0800 836 262) for advice and information. We can:

  • explain the law about renting to you
  • help tenants and landlords sort out problems
  • answer questions about bond money.

This checklist is from the Department of Building and Housing. Visit their website for more information www.dbh.govt.nz

Post to Twitter

Filed Under: For tenants Tagged With: , , , , ,

A Word About Bonds

March 28, 2010 By rentals Leave a Comment
Image showning Loads Of Money Bonds

Bonds

A tenancy bond is a payment of up to four weeks rent made to the landlord by tenants when they move into a property.

The bond is held to cover any loses the landlord incurs if the tenant breaches any of the conditions in the Tenancy Agreement or general obligations of a tenant.

The landlord will collect the bond from the tenant but must lodge it with Tenancy Services within 23 working days, with a signed Bond Lodgement form (by both the landlord and tenant).

The bond is held by Tenancy Services until a Bond Refund form is filed (signed by both the landlord and tenant) by either the tenant or landlord. To ensure this part of the process progresses smoothly, it is important for the tenant and landlord to lodge any Change of Tenants or Change of Landlords during the period of the agreement.

If there is any damage to the property at the conclusion of the agreement, and the landlord and tenant agrees as to the value of this, then the bond is divided between the parties accordingly. However, if the parties are unable to agree on the value, then one of the parties can apply to the Tenancy Tribunal for mediation.

Post to Twitter

Filed Under: For landlords, For tenants Tagged With: , ,

Tenancy Information

March 28, 2010 By rentals 2 Comments

Advice and information for tenants and landlords

If you have problems with rented accommodation, or if you just want information and advice about renting, the Department of Building and Housing can help. e can tell you about your rights and responsibilities as a landlord or tenant. We can also help resolve tenancy disputes.

Renting and the law

The legal rights and responsibilities of landlords and tenants are set out in the Residential Tenancies Act 1986.  The Department’s staff can explain how the Act affects you.

Help for landlords and tenants

The Department provides dispute resolution services, including mediation, to help landlords and tenants solve problems.  For tenancy advice and information call 0800 TENANCY (0800 83 62 62), visit www.dbh.govt.nz or email us at info@dbh.govt.nz

Some common questions

Do I need a written tenancy agreement?

Yes. A written tenancy agreement is required for all tenancies.  Both parties (landlord and tenant) are entitled to a copy. Standard tenancy agreement forms are available free from our website, or you can buy them from major bookstores.

Are there different types of tenancy agreements?

A property can be rented for a fixed-term period, or the tenancy can be periodic.  Most homes are rented as periodic tenancies.  This means landlords and tenants must give written notice to end the tenancy.

A fixed-term tenancy is for a set period of time (for example, six months) and cannot be ended before that time, unless both parties agree, or the Tenancy Tribunal orders it.

What is a bond?

A bond is money that a landlord can ask a tenant to pay as security. The bond can be an amount up to the value of four weeks’ rent. Some landlords may ask for less.

What happens to the bond?

The law requires that a landlord who takes a bond must lodge it with the Department of Building and Housing within 23 working days of receiving it.  Bond Lodgement forms are available from www.dbh.govt.nz or by calling on 0800 TENANCY (0800 83 62 62).

At the end of the tenancy, the bond money will be refunded to the tenant, provided the rent has been paid in full and there are no damage claims.  The landlord may get some or all of the bond money if rent is owed or the tenant has caused damage to the property.

If you have a dispute over the refund of a bond, call 0800 TENANCY (0800 83 62 62) for help.

The Department handles all bond lodgements and refunds.  If you have a question about a bond, please call our bond advice line on 0800 737 666. Please quote your bond number when you call. You can also see our information sheet ‘All about tenancy bonds’ for more information.

How much rent can be charged in advance?

Rent can be charged for a maximum of two weeks in advance.  This means that if two weeks’ rent is paid at the start of the tenancy, no further rent should be paid until 14 days later.

I think my landlord is charging too much rent. What can I do?

If tenants think their rent is significantly higher than other similar local tenancies, they can apply to the Tenancy Tribunal for an assessment. Market rent data is available on www.dbh.govt.nz

What notice should be given for a rent increase?

In a periodic tenancy, landlords must give 60 days’ notice in writing before increasing the rent. The rent cannot be increased within 180 days (6 months) of either the start of the tenancy or the last rent increase.

What is the required notice to end a tenancy?

Notice cannot be given on a fixed-term tenancy.  For periodic tenancies, a tenant must give 21 days’ written notice, unless the landlord agrees in writing to a shorter time.  If the landlord gives notice, and the tenant wishes to leave before the termination date of that notice, then the tenant must still give 21 days’ written notice. The landlord must give 90 days’ written notice in most cases. This may be reduced to 42 days if the:

  • property has been sold with vacant possession
  • premises are needed for the landlord or the landlord’s family to live in
  • property is normally used as employee accommodation and is needed again for that purpose, and this is included in the tenancy agreement.

If the tenancy is provided as part of the tenant’s employment, special provisions for notice may apply.

Who does repairs and maintenance?

Landlords must maintain the premises.  Tenants are responsible for any damage that they, or their guests, cause – either intentionally or carelessly. Tenants must notify their landlord immediately if something needs to be repaired.  If you are having trouble getting repairs or maintenance work done, call us for advice.

Do landlords and tenants have any other rights and obligations?

Yes, the law also covers discrimination, rent receipts, quiet enjoyment, the sale of premises, the landlord’s right of entry, locks, and abandonment of premises.

For tenancy advice and information call 0800 TENANCY (0800 83 62 62), visit our website www.dbh.govt.nz or email us atinfo@dbh.govt.nz

published from the Department of Building and Housing website.

Post to Twitter

Filed Under: For landlords, For tenants Tagged With: , ,

Insurance – for Landlords and Tenants

March 28, 2010 By rentals Leave a Comment

It is imperative that landlords and tenants understand whose responsibility it is to have insurance to make sure that both parties are protected against loss.

Below is a general guideline for landlords and tenants.

The most important factor to remember when selecting insurance is to inform your insurance company that the property is a rental property.

Landlord

The landlord must have insurance for the property (that is the physical buildings, section etc) against fire, storm, flood, damage from burglary etc, if they want it protected against loss. For these types of policies it is imperative that you advise the insurance company that the property is tenanted to ensure coverage. These policies often cover chattels, e.g. carpets and curtains, which is preferable, however this should be clearly defined and clarified with your chosen insurer.

It is also often recommended that landlords take some form of Property and Income Protection insurance. This is an additional insurance taken out by a landlord to cover for:

  • Loss of rents due to abandonment
  • Loss of rents due to eviction
  • Malicious damage/theft by tenants
  • Rent recovering whilst malicious damage is being repaired

Tenants

You must ensure you have personal contents insurance for your belongings to ensure they are protected against loss.

You should also consider personal liability insurance to cover you against damage to the landlord’s property. If your name is on the tenancy agreement, you could be held liable for damage whether it was caused by you or your flatmates.

Post to Twitter

Filed Under: For landlords, For tenants Tagged With: , , ,

Tenants Obligations

March 28, 2010 By rentals

As a tenant it is extremely important that you understand your obligations in relation to a rental property.

By not fulfilling your obligations it is possible to lose your bond.

As a tenant you must:

  • Pay the rent on time.
  • Ensure the property is used for residential purposes for the majority of the time.
  • Keep the property up to a reasonable standard of cleanliness.
  • Inform the landlord of any damage as soon as possible.
  • Pay for the repair of any deliberate or careless damage which you cause.
  • Comply with all conditions in the Tenancy Agreement.
  • At the end of the tenancy remove your belongings; leave the property in a reasonable state of cleanliness; return keys or any like devices; and leave the chattels provided by the landlord.
  • Allow the landlord reasonable access to the property.
  • Pay for all electricity, gas and telephone used by you.

You may also be required to cover the cost of water depending on whether it is provided for in the Tenancy Agreement.

As a tenant you must not:

  • Damage or allow others to damage the property, whether deliberately or carelessly.
  • Use or allow others to use the property for any unlawful activities.
  • Interfere with the neighbours peace, or comfort.
  • Make any alteration to the property in any way without the landlords express permission.
  • Refuse the landlord entry when they are entitled to enter.
  • Sublet without the express permission of the landlord.

Post to Twitter

Filed Under: For tenants Tagged With: ,

Thinking of going renting?

March 28, 2010 By rentals Leave a Comment
Image showing a couple thinking about renting a house

Renting through Walker Property Management

Finding a house to rent in Gisborne, New Zealand can be a rewarding, if difficult, challenge!

There are many ways to locate the perfect rental property, but there are a few things for first-time and seasoned renters to bear in mind. Whether you’re making the break from the family nest, newly settled in New Zealand or a student moving to a new city, here are a few pointers to guide you on your way.

Know what you’re looking for

Finding the right flat can be a daunting task, but it helps to know what you want in a flat, apartment or house. When searching for a rental property in Gisborne, narrow down your choice by deciding how many rooms you need in the flat, choosing a suburb that suits your requirements (eg. is close to your work or city) and knowing what you’re looking for in a potential flatmate if you are going to be sharing the property.

Inspect the rental property before making a decision

Before moving into a flat, it’s an excellent idea to have a thorough look around the property, ideally with the property manager, so that you can establish the condition of the property before moving in. Things to bear in mind when viewing a property are:

  • How many bedrooms are there and what size are they?
  • Are all appliances supplied? If so, are they in working order?
  • What heating and insulation is there?
  • Is there any existing damage?
  • Are pets allowed?
  • How secure is the property? Check for locks on windows and doors, an alarm system and secure gates onto the property.
  • Is there a garage or off street parking (OSP)?
  • How close is the property to public transport, schools and shops?

Compile a checklist and take it with you when looking at properties. Don’t be afraid to ask questions.

Keep up with the bills

Money matters when flatting, so it’s important not to fall behind on rent and bill payments. Moving into a flat can incur a high initial cost – you should allow for the fact that you’ll have to pay rent in advance (usually two weeks) as well as a bond payment (up to four weeks rent) before moving in. After these payments, it’s important to get on track:

  • Plan a personal budget – calculate regular income and regular expenses, then figure our what remaining money you have and incorporate other expenses into this equation.
  • If you’re flatting with others, it’s easiest to have a shared flat account, into which a regular payment for rent and bills is paid, eg. $100 for rent + $20 for bills = $120 per week from each flatmate. Also, work out if you will be shopping for food together, as this could be included in the flat account payment. All rent and bill payments will be made from this account.
  • Set up direct debit payments for: rent to be paid into the flat account; rent payments to the property manager; appliance hire costs; electricity and phone bills; and any other regular bill payments.

Know your (rental property) rights

Don’t get confused by all the legal mumbo-jumbo, but do take a careful look at any agreement that you sign. If you’re moving into an empty property, you and the property manager will need to sign a tenancy agreement. The tenancy agreement should outline your obligations (eg. paying rent on time, keeping the rental property clean and tidy, not having any pets living in the house) and your landlord’s obligations (eg. repairs, regular maintenance, flat inspections). This is a legally binding document, so make sure you ask questions if you don’t understand or have any concerns.

If you do not sign any agreement when moving into an existing flat, you are not under as much legal obligation to the landlord. This means that you are a flatmate, while those who have signed the lease and tenancy agreement are tenants. As a flatmate, you have fewer legal requirements, but you may also have fewer rights. You could be asked to leave with no notice or find yourself facing accusations about failed rent or bill payments.

For more information on the legal side of moving into a rental property, go to the Department of Building and Housing.

Make your house into a home

Once you’ve signed the tenancy agreement and moved into your new flat or rental property, you can focus on the task of making your house into a home. Use a little imagination to create an environment that reflects you! For those on a tight budget, try these places for discount furniture and appliances:

  • New and secondhand furniture stores
  • Online auction sites
  • Appliance rental companies
  • Department stores
  • Your local council recycling centre

Shop around for bargains.

Protect yourself with insurance

Remember too, it’s a good idea to insure your possessions. Whether you are flatting with others or renting your own home, insurance is vital. Make sure you discuss property maintenance, damage to property and tenant liability with your landlord or property manager. Protect the things that matter to you with the help of a New Zealand insurance provider.

Content contributed from NZS website.

Post to Twitter

Filed Under: For tenants Tagged With: ,

What is the right investment property to buy?

March 28, 2010 By rentals Leave a Comment
Image showing a question mark and What is the right Investment property to buy?

What is the right Investment property to buy?

That’s a question we as investors ask ourselves and one we often struggle with. When we talk with our friends we  are bombarded with advice.

“Don’t buy in that area …”

“Why would you want to buy a two bedroom unit!”

“Never get a fibrolite clad property …”

Sounds familiar? Often the people who are giving their opinion may not be suitably qualified in the area of property investment.

We would be better off to seek out the advice from successful property investors, who have grown their personal wealth through wise investment decisions.

I think it is important to understand this point.

There are no “right or wrong” type of investment properties, but some are better than others.

Really, it’s about what we value in property investment. The 4 key factors are:

1) return on investment: what income are we getting here? (less expenses of rates, insurance, repairs & maintenance and management). This is usually expressed as a percentage of the purchase price, but it’s important to keep in mind that we are likely to borrow a large portion of the purchase price, therefore the return on our investment (what we put in) will differ.

2) ongoing cost of ownership: older properties generally require more maintenance than newer ones, but all properties require some degree of regular maintenance. Some require major upgrades (kitchens, bathrooms, driveways). These need to be factored in over a longer period of time.

3) ability to add further value: either by subdivision, redevelopment or renovation

4) likely future capital gains: property markets in the same city generally rise in value at the same rate.  But some sectors may be at a low point in the value cycle. By purchasing now and holding for a period, significant gains may be likely sometime in the future. Good examples of these in this current market are coastal property and apartments in Gisborne.

It’s my experience that investors consider all these factors but weight them differently and base their buying decisions on what they value most.

We just need to be clear in our thinking and be sure we are buying for the reasons we value the most.

Post to Twitter

Filed Under: For landlords Tagged With: , , , ,

Why use a property management company when you can look after your investment property yourself?

March 28, 2010 By rentals Leave a Comment


I think it is important to remember why we buy investment property in the first place. That is:

To make us  money, not to give us something to do!


New Zealanders are great DIYers. That is a strength but it can also be a weakness.

You should consider using a property management company for the following reasons:

  • To maximise the return on your investment
  • To minimise the stress and work associated with owning an investment property
  • To secure your future wealth
  • To be kept informed with market developments

Maximise the return on your investment

If you choose to manage your own investment property - as many New Zealanders do, it’s very hard to know if you’re getting the best return. Market rents can change and unless you are informed, you could be under renting your property by thousands of dollars a year.

When tenants move out, it’s important that you get the right tenants in as soon as possible. More often than not Walker Property Management has a database of suitably qualified people looking for property.

When repairs are needed, it’s important you get the best prices and quality on maintenance work. Our network of trades people cant assist you with this.

Minimise your stress

Investment properties should make you money, not work.

The Walker Property Management team do nothing but manage rental properties. So they can help you enjoy maximum returns on your investment, and keep your weekends free for your family and for fun things to do.

Not only that, they also remove the stress of managing your own property. Things like interviewing potential tenants, collecting rent (and chasing arrears), managing paperwork, and a host of other time consuming chores.

Walker Property Management provides

  • Intelligent, honest feedback and advice
  • A smooth leasing process
  • Highest quality tenants
  • Highest possible rent returns
  • Comprehensive account management
  • A dedicated single point of contact

Secure your future wealth

You wouldn’t just give any company who called themselves a bank your life savings. Investment property is no different. For some people, it is their life savings - or a major part of it.

So the same standards of professionalism and security should apply. Make sure you complete due diligence, before you engage a property manager. Let Walker Property Management make this easy for you.

Market information and advice

Walker has a team of experienced professionals in the Gisborne property market. Property Management and our Real Estate and Property Investment specialists are in a position to provide you with valuable advice and opinion.

Every month we research activity and trendsin the Gisborne property market. We looks at the issues impacting on the market, the rental and sales trends in our area and other cities and much more. We post regular updates on our websites.

Post to Twitter

Filed Under: For landlords Tagged With: , , ,

Australian and UK Residents – Buying Investment Property in NZ

March 28, 2010 By rentals Leave a Comment

the ideal investment property - 1960's weatherboard bungalow

Australia and the UK have very similar tax rules.

If an Australian or UK tax resident purchases a rental property in NZ, then they will be liable to pay income tax on any rental profit and to pay capital gains tax.  If the rental property makes a loss, then that loss is not allowed to be offset against their other income, it is only carried forward and used to offset any future profit from the NZ rental properties.  For these reasons, you don’t want your NZ rental property to be owned in your personal names.  The best option is to own the rental property in a NZ Trust so that the rental property is kept outside the Australian or UK tax rules.

this article is from John Bolton at Squirrel. Thanks John

Post to Twitter

Filed Under: For landlords Tagged With: , ,
« Older Posts

Web site set up and SEO optimisation by Mike Andrew Consulting