What does a Property Manager do?
 

Property Managers handle all the aspects of Property Management that a landlord should. We find and select great tenants, inspect the property on a regular basis and report back to the owners, arrange maintenance, collect rent and do all the paperwork. Part of our service is to also ensure any emergency is dealt with promptly, even after-hours.

How do you choose a good tenant for my property?
 

While instinct is a good guide to the first ‘cut’ in selecting tenants for a property, it should never be relied upon alone. We interview potential tenants during the viewings and if we need more information, we ask. All tenants must fill out a detailed application form in which they nominate referees, who are telephoned and interviewed. These referees will include current and former landlords, employers and an ‘alternative referee’.

Where do you advertise my property for let?
 

The saying goes 'you can't sell a secret', so we advertise your available properties widely. We list properties on popular real estate websites such as TradeMe.co.nz.We encourage prospective tenants to sign up for alerts to tell them when a property is coming available. Where necessary, we place advertisements in local papers (different suburbs benefit from different approaches – we aim to deliver the most cost effective coverage for your property). We can also put a ‘For Rent’ sign in front of available properties when possible, as neighbours often know someone looking for a property near-by and people interested in an area will drive the streets to get familiar with the area. We also let people in our networks know about our vacancies – they know other people who are actively looking.

What happens if tenants owe money when they leave?
 

If a tenant leaves owing money there are several courses of action we can take. Assuming the tenant has been asked to pay and they have not, the first, and simplest step is to deduct it from the bond.

If that is not sufficient for any reason, the second step is to apply to Tenancy Tribunal. If the tenant is ordered to pay, we will make arrangements with them to do so.

Failing this, we can help you seek an Order of Examination or other orders through the Courts, and a Warrant to Arrest if they still do not comply. This is fairly serious, and is very rarely needed. We can also arrange a debt collection agency to recover the debt.

Do I need to let my insurance company know the property is rented?
 

Yes! You need to let your insurance company know if the use of your property has changed. Make sure they cover you for ‘landlord’s contents’ – things like carpet, curtains, stoves. Normally these would be covered by your contents policy if you lived in the property, but the tenant’s contents policy will not cover these as they do not own them.

There are several other extensions to policies some insurance companies offer, such as ‘loss of rent’ should your property need extensive work (e.g. after fire or flood) and is uninhabitable during that time. Generally speaking, it is worth considering if this sort of policy is needed as the small annual premium far outweighs the cover it provides you in the case of a problem. We recommend ‘glass and sanitary fixtures’ extension to cover accidental breakage of windows, toilets, basins and so on. Not all companies offer all of these policies so shop around.

Let your Property Manager know what policies you have so they handle claims appropriately, particularly if you are not contactable for a period of time, such as travelling abroad. It is very important that properties are inspected regularly so any insurance claims are covered. Check your fine print on the insurance policy and discuss it with your property manager. We can recommend an insurance broker contact us for details.

Do tenants need insurance?
 

We highly recommend all tenants have contents insurance with ‘public liability’ cover. This insures tenant’s belongings should there be a burst pipe or some other building disaster (the landlords cover will not replace tenants belongings as the landlord does not own them). If the tenant accidentally causes damage to the landlord’s property, (e.g. if they backed their car into a fence, or cooking disaster burns down the kitchen), they may be covered. Without insurance cover, the landlord’s insurance company could try to recover the costs from the tenant. The cost of insurance is a small price compared to rebuilding a house.

We make sure all our tenants know about insurance that will cover them in these instances when we sign their tenancy agreements. However, under current New Zealand tenancy law it is not compulsory for tenants to have insurance, but it is considered very wise to have it. We can recommend an insurance broker, contact us details.

How often can rent be reviewed?
 

By law, rent cannot increase within 6 months of the start of the tenancy or since the last rent increase, and tenants must be given 60 days notice of an increase.  

In fixed-term tenancies, rent is reviewed at the end of the fixed term if the tenant is staying on, whether the tenancy is a new fixed term, or rolling on to a periodic tenancy. If the fixed term is longer than 24 months, the rent may be reviewed after 12 months provided this is noted in the tenancy agreement. Rent reviews do not always result in an increase in the rent. ‘Review’ means that we take another look to see how the property compares with others in the market. If you would like to know if you are getting market rent for your properties.

 

I want to move back into my property – what do I need to do?
 

If you decide to move back into your property, contact us as soon as possible. By law, tenants with a periodic tenancy must have 42 days (6 weeks) notice if an owner, or a member of their family, want to move into the property. The more notice, the better. Please note that fixed term tenancies cannot be terminated by notice, so let us know if you are considering returning to your house so we can structure our tenancy agreements appropriately.

 

I am thinking of selling the property – do I need to tell the tenants to leave?
 

Not necessarily. Under the Residential Tenancies Act 1986, Real estate salespeople must have access to the property to show it and the tenant can impose reasonable conditions on that access. Tenants must be told the property is on the market. When the property sells, the new owners may want to keep the existing tenants, or they may want the property with ‘vacant possession’. If it is sold with vacant possession and the tenants are on a periodic tenancy, the tenants are given 42 days notice only when the contract goes unconditional (not when it is listed - a common mistake).  If tenants are on a fixed-term lease, settlement can either be after lease expiry to give vacant possession, or the buyer can take over as landlord until the contract ends.  If neither of these suit, try making tenants an offer they can't refuse.