Walkerweir focus on knowledge & skills on the management of your property. This is successful management company that will treat your property as their own. Specializes in managing residential commercial properties in the Auckland area.
Then market commentators would say that we were in the middle of a ‘bear market’. The term ‘bear market’ is used to describe the stock market when stock values are falling and the overriding feeling is one of pessimism. While property values seem to be holding their own, just, there certainly does appear to be an ‘air’ of negativity amongst landlords. And it’s not hard to identify the source of the angst. The present Government’s proposed changes around the Residential Tenancies Act and other legislative changes will negatively impact landlords by increasing their costs, of that there is little doubt. Private landlords remain the biggest providers of residential rental properties in this country and it seems incredibly short sighted to negatively target the largest provider in such an important sector. With around half of all Kiwis now living in rental accommodation, the backlash, if the Government doesn’t get things right could be exponential. Industry experts (including us) have for some time been saying that the over-riding effect will be an increase in rents. Not convinced? Then think about these stats from NZ Property Investors Federation (NZPIF). According to their analysis, overall rental prices are up 6.1% in 2018 compared with the same period in 2017. And what’s worse for renters is that this is a higher price rise than during the last two years where rental prices increased 3.4% in 2017 and 3% in 2016. According to NZPIF and our own analysis rental price increases are set to continue as landlords continue to try to off-set their increasing costs.
Buy, sell or hold:
Last month we talked about the options for investors in this sort of market. Given that we’ve compared our present residential market to the stock market we thought that we would leave it to arguably the World’s foremost share market commentator and investor, Warren Buffet who made the following (now) famous quote when asked about his share buying strategy. Buffet said “Be fearful when others are greedy and be greedy when others are fearful”.
Twyford introduces Bill to end Property Managers from charging tenants a letting fee:
It’s very common practice for Property Management companies to charge tenants a letting fee at the beginning of a tenancy. The fee is normally equivalent to one weeks rent and helps property managers off-set the costs involved with setting up and commencing a new tenancy. In some cases, landlords are also charged a fee at the beginning of a new tenancy to cover fees that other PM companies separate out in their list of charges. According to Mr Twyford there is no justification for landlords passing this cost on to tenants and banning the charging of tenant letting fees will help make rent more affordable which will in turn help tenants save to buy their own home. Bloody rubbish! Is it just us, or can others see the problems that this will invariably cause the industry? For example, the Independent Property Managers Association (IPMA) recently surveyed their members and found that abolishing tenant letting fees will affect the bottom line of their business by 10 – 15%. Other industry surveys have shown that up to 80% of property management companies will endeavour recovering the cost from property owners by introducing administration fees or increasing management fees or a combination of both. And the best way for landlords to cover the increased costs will be rent increases. And in breaking news – it was recently reported that Mr Twyford accepted that abolishing letting fees was likely to result in rents increasing but justified this by saying that the letting fee is charged to tenants at a time when they have to find up to four weeks bond and two weeks for rent in advance. As rents invariably increase (which they will) the property management industry and landlords will cop the blame. Tenants and media commentators won’t drill down to identify that it was in fact the Government’s strategies that resulted in the increases.
Walker Weir strategies:
Obviously the proposed changes are a concern to us at Walker Weir. There aren’t many businesses out there (regardless of what industry they are involved in) that could afford to lose approximately 15% off their bottom lines. As a result, we, are looking at a range of strategies that we may implement to help off-set the negative impact on our business. What we are not going to do is panic. We will consider all of the options available and consult with as many industry experts as possible.
As a Property Manager there is nothing worse that contacting a landlord to advise them of maintenance that is required only to be told that they won’t or can’t do it as a result of not having the money. That should never be the case and that sort of response ‘no longer cuts the mustard’. Often when mentoring new investors we tell them to treat their landlord duties the same as they would any other business. Compare for example owning a corner dairy with being a landlord. How often will you, as a customer, keep going back to a dairy with very little or poor stock. The same applies for the quality of a rental and the landlords attitude to maintenance. Good quality, well maintained rental properties attract better tenants, better rents AND the tenants stick around. They stay on in the rental property because they understand that the landlord is trying to offer them the best the property will allow. And a final word on maintenance – The Residential Tenancies Act states that necessary maintenance must be carried out. It’s an unlawful Act not to carry out necessary maintenance.
Insulation: 2019 is just around the corner folks so you have just over 12 months to have your rental properties insulated to meet the new Government standards (if they aren’t already). Any property that is not sufficiently insulated will not able to be lawfully rented after June 2019.
Q. As a landlord how much notice do I have to give to the tenant if I want to visit the property?
A: This question follows on from last month’s FAQ which dealt with giving tenants 48 hours’ notice of an inspection and 24 hours’ notice to carry out repairs and maintenance. In some ways it’s a bit of a ‘trick’ question because the simple answer is that you don’t have to give the tenants any notice if you merely want to enter onto the property. For example, you want to speak in person with the tenant. However, if the tenant requests that you leave then you must do so immediately. Please don’t get confused. We are referring here to the likes of visiting the property and knocking on the door. We are not talking about entering the premises.
Heatpump and fire servicing reminder: For safety reasons it’s important that fires are cleaned yearly. Heat pumps should be serviced at least every two years.
Next Disbursement: Tuesday 15 May 2018.
Disclaimer: Given the opinions expressed in parts of this email it’s important that we make it clear that the contents of this email are opinions and observations and made in good faith. We suggest that in all cases independent legal and financial advice is sought.
New Zealand has a vibrant property market that is attracting a lot of attention at the moment. The general trends of property investment stay relatively constant, but there are always fluctuations over the short term that can make trigger happy investors pull the plug. In this article, we will discuss some of the major investment opportunities and trends in New Zealand right now.
Rental Properties in Demand
Due to a perceived shift in the trajectory of housing prices, many investors have elected to reduce their portfolio size in recent years. This has increased the number of owner occupied houses across New Zealand, and reduced the quantity of rental properties on the market. This swing has led to a rapid increase in rent prices for urban city environments where there is continual population growth. It makes it a great time to be in the investment property game and to let the investments mature rather than being all about the quick flip.
Get the Right Advice
The best advice for any property investor is to do short and long term research on the area you are looking at buying property in. A good way to do this is to look at median housing prices over the last decade and median rents in the same neighbourhood. Talking to landlords can help too, as they have experience on the ground. It is never a bad time to invest in property with the overall trajectory of the market but there are peak troughs and highs in the short term. Compounding social issues can make some areas more attractive for short term or long term investors, and it is therefore important to have a strategy in place for your investment.
Fewer New Homes on the Market
The rise of owner occupied dwelling numbers has led to an increase in new homes and renovations, but increasingly these are places built to be lived in and not sold. As discussed in an earlier blog <link to page7>, older properties pose increased risks and new investors should be aware of the many potential shortfalls of investing in old houses and apartments.
Walker Weir can Manage Your Investment Property
Walker Weir are professional property managers based in Auckland. We have lots of local experience, are well connected in the industry and have our ear to the ground on property trends. If you own an investment apartment or house, we can help you lease it for the best price and manage the upkeep so you can focus on living your life. After all, what’s the point of an investment if you have to spend a lot of time maintaining it yourself? To find out more call us today on 22 657 9432 or contact us online.
Everyone with money is looking for ways to make it work for them. It is well known that the easiest way to make money is investing, but with so many investment products out there it can be hard to decide what kind of investment is right for you. Some people favour the stock market, cryptocurrencies or bonds, but in this article, we will discuss the major benefits of investing in property.
People Need a Place to Live
Everybody needs a roof over their head. Whether it’s an apartment or a house, there is constant demand for housing. Because population is on the rise, there is also an increase in the number of people with a demand for housing. This makes the housing itself a limited commodity and helps to explain why housing prices have been increasing steadily for years. Everybody wants to own their own home, so the demand for rental properties is also increasing, and with that so are rental rates. Both of these factors combined show that the price of getting a roof over your head is increasing much faster than inflation, and it is therefore a good time to own property.
Risks of Property Investments
Every investment has accompanying risk and that of course includes property investments. When you buy your first building, chances are that you are doing so with the help of a mortgage from the bank. This is your first risk, which means you may not be able to meet the repayments and will have to forfeit your investment.
Another thing to be cautious of when investing in property is the age of the building. Old houses and old apartments will often require expensive repairs to make them marketable. It is one reason to always do the due diligence of organising a series of property and infrastructure inspections and reports before you purchase a property.
Outsource Property Management
Your investment property is an asset that is capable of continuously generating dividends in the form of rental payments. Because of this ongoing cash flow, it is possible to outsource the management of your property for a small fraction of this ongoing cash flow. This is a major bonus, as it means you will no longer need to go through the process of facilitating repairs, interviewing tenants or collecting rent.
You can outsource the whole set of responsibilities that usually goes with being a property owner, and sit back on a beach somewhere counting the money that comes back to you. Additionally, if the property management company is decent they will offer a rental income guarantee so that you will continue to get paid even if the tenant is experiencing financial difficulty.
Hire Walker Weir to Manage Your Investment Property
Walker Weir are experts at managing investment properties in Auckland. It is our business to protect the value of your investment and ensure it brings you solid and consistent returns. We gladly oversee the entire process of renting, from tenant selection to facilitating repairs and collecting rent. We even offer a rental income guarantee so that tenant cash flow problems don’t become your problems. Call us today on 022 657 9432 or contact us online.
It can be difficult to know what kind of property is right for you. That’s true whether it comes to a property to live in or invest in. The first consideration of every home purchase is that it should be liveable, but beyond that there are dozens of potential pros and cons to every property. In this article, we will discuss the advantages and potential shortfalls of investing in apartments.
No Garden and a Body Corporate
A major advantage of apartments is that they don’t require as much maintenance as a house. There is no grass to mow and no roof to clean. The body corporate will charge fees, but in exchange will take care of all building and exterior maintenance.
However, this can also work against you in that changes to apartment appliances and structures may be opposed by the same organisation. It is therefore imperative that you are satisfied with the apartment as it is, rather than planning a series of renovations.
It’s a fact of the Auckland Unitary Plan and more high density living in the offing that neighbours are getting closer together. This can be an issue whether you plan to live in your apartment yourself or in the more likely event of planning to lease it. It is worth investigating the reputation of the building you propose to invest in, not just the interior of the apartment itself. A great way to do this is to review the body corporate minutes. For one thing, buildings with poor reputations attract lower rents. For another, they are more likely to have inter-tenant complaints which can be a hassle for landlords. You can get information on the building by researching the body corporate that manages it.
The most important value determining factor of apartments is location. Apartments in rapidly expanding areas are likely to offer substantial capital returns over a few years. People are willing to pay more to live closer to where they work, and with the way that property and rent prices have been increasing over the last few years, sometimes investing in apartments is a good way to get your foot in the investment property door.
Age of the Building
Unfortunately, most apartment buildings do not age well. While some age and become neighbourhood institutions, others gain chronic conditions and fall into varying states of disrepair. Major repairs and renovations are difficult and complicated when you need to organise several disparate renters who are just trying to get on with their lives. For this reason, if you are looking to invest in an apartment think seriously about how old it is and how many years you are intending to hold onto your investment.
Contact Walker Weir to Manage your Investment Apartment
Walker Weir are highly experienced and reliable property managers in Auckland. We manage all kinds of properties and can oversee the entire process of renting, from tenant selection to hiring tradespeople for repairs. We even offer a rental income guarantee. Call us today on 022 657 9432or contact us online.
Not all property managers are equal. Some property managers are more focused on turning individual profits than maintaining long term beneficial relationships with renters and property owners. A good property manager will treat your property like it is their own, and will always be close at hand if you need to discuss anything. In this article, we will discuss five signs that your property manager is not up to the job and it’s time to find another one.
Poor Local Knowledge
A decent property manager will know local trends. They will be able to ask for the highest possible rent for your property because they know how much it’s worth and what the local prices are. If your property manager can’t tell you the average house value in your suburb or the average rental figures, then they might be spending more time drinking coffee than doing the necessary research for their job.
Bad Google Reviews
It is worth noting that people with negative experiences are more likely to review services than those with adequate experiences. That being said, bad Google reviews for your property manager are worth reading, and if there is a clearly visible pattern of substandard behaviour look elsewhere. The internet has made every aspect of our lives more connected, and that includes researching business capabilities.
Difficult to Contact
A property manager should be readily reachable by both the property owner and the tenant. If they are difficult to contact or impossible to peg down on the phone, chances are that they are shirking their responsibility in more ways than one. The property manager needs to be contactable by tenants to organise repairs in a timely and efficient manner. If the property owner can’t contact the manager, chances are the tenants will have problems too, and seeing how a stitch in time saves nine, a manager who is slow to organise repairs can cost you a lot of money in the long run.
Offers no Guarantees
A good property manager will guarantee their services. For properties where they have selected the tenants, this can include a rental income guarantee, which means that you will always be paid rent even if the tenant fails to. A property manager who refuses to guarantee or insure their services exposes you to substantial risk.
They are Impolite
This might not seem like the most important aspect of property management, but property managers are essentially relationship managers. They need to keep everyone happy, from the tenants to the tradespeople, but most importantly the property owners. Impolite landlords and property managers who act aggressively or arrogantly are difficult to deal with and can cause animosity between themselves and clients, which makes difficult situations harder to deal with.
Walker Weir is Reliable Property Management in Auckland
Walker Weir are professional property managers in Auckland. We are friendly and reliable, check our reviews and testimonials. Call us today on 022 657 9432 or contact us online.
All houses require ongoing maintenance. There is no alternative but to let them fall down around you. As properties get older maintenance that has been avoided can start driving up the cost of repairs. The best way to keep on top of maintenance is to have a yearly schedule for inspections and upkeep. In this article, we will discuss some of the most common repairs for older properties.
Most people don’t realise just how much maintenance roofs require. They should be inspected annually for loose and missing tiles, which is a great time to empty gutters. Most roofs have a lifespan of 20 to 50 years depending on the materials used in construction. All roofs will need to be replaced eventually. Typically metal roofs last longer and require less maintenance than tiles. Problems with roofs escalate quickly; one missing tile creates an opening for wind to easily tear off other tiles. Any small perforation in the waterproofing system of the roof can start the process of water infiltration. Water getting into the roof can swell and destroy insulation, encourage the growth of mould, or compromise the structural integrity of the roofs frame. In some cases, all of that can happen before there are visible signs of water damage inside the property.
Many people might think plumbing is set in stone but foundations move. Before the prevalence of plastic pipes, plumbing was constructed using materials that are vulnerable to corrosion. Underground plumbing problems with sewage infrastructure is common, particularly given the increases in human density. A subdivided property with four small units might be funnelling through a bottleneck of the original two bedroom home sewage pipe. Of course, plumbing problems occur in the house too. With older houses, regular wear and tear over many years can cause numerous problems with pipes and fittings.
A hundred years ago, electricity was a lot more of a novelty than it is now. These days, there can be hundreds of electrical appliances in every house. Demand and expectations from the electrical grid have never been higher especially with the emergence of electric vehicles.
Unfortunately, older houses were often built without the present demand for electricity wired into their walls. This can cause problems. Additionally, if there have ever been pest problems, there may be exposed or frayed wiring in the walls, exposing the house to risk of electrical fault and fire.
Walker Weir Offers a Full Suite of Landlord Services
Walker Weir are professional property managers in Auckland. Our primary consideration is the property owner’s interests and that means we are thorough with our property maintenance. We carry out regular inspections to catch minor structural issues before they become expensive problems. When repairs are required we will organise them through our extensive list of trusted tradespeople. Call us today on 022 657 9432 or contact us online.
As a property investor, your primary interest is maintaining the value of your investment. The value of property in Auckland has been steadily increasing for years, so re-sale is always an option that should provide a good return. Renting your investment property is another great way to keep the cash flowing. Renting also creates risks for your property, and that can be daunting for unprepared and inexperienced landlords. In this article, we will explain how a good tenancy agreement can protect your interests.
Avoid Bad Tenants
A comprehensive tenancy agreement will weed out bad tenants. Bad tenants, in this instance refers to those that will push the limits of what is acceptable behaviour in a rental. If you are allergic to particular animals, you will want a tenancy agreement that prohibits those animals from your property. You might not want to live there now, but you may change your mind at some point in the future.
Flats are a rental phenomenon where housemates come and go, and a family home is sometimes shared between half a dozen university students. Sometimes the tenants have turned over at such a rate that there is actually nobody left in the house that signed the original lease. With the right tenancy agreement, you can stop this phenomenon in its tracks by forcing every tenant to register.
Deal with Issues Quickly
Having a detailed and concise tenancy agreement has clauses pertaining to solutions for potential future issues. Other parts of the tenancy agreement might make it necessary to contact the landlord for any and all repairs, so that the landlord can organise a repair person they trust to do the repairs. That also goes for accidental breakages as repairs the tenants will expect the landlord to pay for, like plumbing.
A tenancy agreement is a legal document. It is the first line of protection for property investors and managers. The tenants will have a copy of the document and therefore will be able to read and know about it when they breached it. The time involved for taking tenants to the Tenancy Tribunal for any reason can escalate quickly, and should largely be considered as the last possible option. Having a comprehensive tenancy agreement that spells out consequences, rights and responsibilities in easy-to-understand language is the best way to ensure tenants behave in your interests.
Walker Weir Crafts Exceptional Tenancy Agreements
Walker Weir are highly experienced property managers in Auckland. We always consider how best to manage the property owner’s interests, meaning we are thorough with our tenancy agreements. We also carry out regular inspections to catch minor structural issues before they become expensive problems. Call us today on 0226579432 or contact us online.
The best place to be during winter is inside, rugged up and cosy. Unfortunately, old houses can wreak havoc on the best laid plans, and as a landlord there are numerous issues that can arise which require your attention. In this article, we will discuss a few of the most common winter property problems.
While many people don’t realise it, roofs need to be maintained regularly. Old roofs can start losing tiles, accumulate debris in valleys, or become rusted around bolts. It’s important to regularly inspect your roof, but many of these checks get missed during the buying and initial rental phases. There are a few days of consistent heavy rain during winter that become apparent, and when water is leaking into the house, the problem is quite severe. Roofing problems escalate exponentially, and it is important they are dealt with quickly to avoid costly repairs in the future.
In the same vain as leaky roofs not being apparent until the water is flowing through them, broken heating systems won’t be obvious until someone tries to use them.
As a landlord, heatering systems are often supplied as a chattel or appliances with the rental, and therefore it is your responsibility to maintain them. Tenants are liable to become grumpy if they are stuck in a cold house when they paid for a working source of heating.
The best way to avoid getting stuck with a long delay in repairs is to have your property management team check all of the chattels and appliances thoroughly during initial property inspections.
Some storm damage is often unavoidable. The forces of nature can be extreme, and with climate change storms are likely to become more intense and irregular, leading to all sorts of unforeseen outcomes. A lot of storm damage, however, is preventable with good property management. Roof inspections are a great way to isolate and repair loose tiles before they fly off and wreck someone’s car. Another excuse for a roof inspection is to clean gutters, as gutters filled with debris can make it easier for water to get into the roof space.
A tree inspection from a qualified arborist can identify problematic overhanging branches and develop a plan to remove them.
Contact Walker Weir for Efficient Property Management
Walker Weir are experienced property managers in Auckland. We manage a plethora of properties and have an exceptional list of tradespeople on call for all manner of inspections and repairs. We are also persistently thinking about how best to manage the property owner’s interests, which means we are thorough with our regular inspections to catch minor issues before they become expensive problems. Call us today on 0226579432 or contact us online.
Renting an investment property can be a hassle. Understanding the legal obligations of landlords and tenants can take a long time and that’s before you’re even fulfilling them. The ongoing demands of maintenance, chasing rent and doing inspections can really take it out of you. At the end of the day, managing the tenants of even a single investment property can begin to feel like a job. In this article, we will discuss some of the most common issues with tenants that landlords face and explain how a good property manager can save you time and money.
Tenants Not Paying Rent on Time
While it’s never polite to be rude or aggressive about money, paying rent is the basis of a rental contract. There can be dozens of reasons why a tenant has been unable to pay rent on time, and they are more often than not legitimate. Cash flow problems can affect anyone. Whether your tenant is suffering from a recent unemployment, had a spike in medical bills or is simply bad at managing their money, there is always a diplomatic way to go about getting your money. Sometimes a payment plan needs to be devised, other times it may be necessary to wait a week for their next pay cheque. Being demanding and aggressive may lead to a tenant to leave early and place you in the tricky situation of needing to find a new one.
A good property management company will know the ins and outs of communicating delicately and effectively with tenants. A happy tenant is likely to be more reliable and easy to manage. A mark of a successful management company is that they will have a guarantee, meaning that the homeowner always receives their rent, even if the tenant is having cash flow problems. This avoids having the tenant’s cash flow problems becoming yours.
Tenants Being Obstructive Neighbours
As a landlord, you are often approached by neighbours and members of the community when your tenants are loud. It might be all night parties or a drum kit that is only used within daylight hours when the neighbour works nights and sleeps during the day. Often the best solution is to have the tenants solve the issue directly with the neighbours, but sometimes it is impossible and mediation is required.
Thorough screening and a detailed tenancy agreement is usually the best preparation for avoiding tricky situations, but the next best thing is experienced property managers who have experience mediating complex situations.
Undocumented Tenants and Animals
It’s an issue that is all too common. A house gets rented to a couple and unbeknownst to the landlord, half a dozen other friends move in. Different tenancy agreements permit subleasing the property and there is never a uniform way to deal with the situation. A good property manager may be able to find a solution that is beneficial to all parties, such as a slightly increased rent or bond to cover the increased likelihood of property damage.
Walker Weir are Professional Property Managers in Auckland
Walker Weir are highly rated professional property managers in Auckland. We manage properties across the city, making us experts in the industry. Our priority is the property owner, and we offer a rental income guarantee so you can trust us to manage the property while you sit back and watch the money flow. Call us today on 0226579432 or contact us online.