This act covers the NZ Law relating to the renting of your property. It covers the obligations of both landlords and tenants. Every landlord and tenant must operate under the rules of The Act.
We choose to provide Property Management as well as a placement service. Letting / tenant placement is finding tenants and the landlord manages their own property. The agency charges an administration fee to the tenant for finding the home.
We at Wise Property Management do offer tenant placement as a service to Landlords, as this service can form an integral part of their current investment strategy.Potential tenants are happy to liaise through a management company and this can speed up the process for landlords in the tenant selection and checking stage.
Before starting in business we studied the ‘traditional’ business module. After long discussions we decided that we were best able to serve our landlords by saving on the smart office which really only serves as a ‘look at how great we are’ symbol and spend our money on petrol and just getting out there and doing the job. We have discovered many more upsides to this business setup.
We enjoy meeting Landlords at coffee shops to have a catch up.
We meet all tenants at the property that they wish to view.
They are required to bring along to our first meeting a completed application form and photocopies of their ID and references. If they are unable to complete this simple task we have to ask ourselves, do we want them as a tenant.
We also meet the successful tenant back at the property to sign the tenancy agreement and complete the first inspection. By this time we to are becoming very familiar with the property and the surrounding neighbours.
We meet the home owners in the area and give them our contact details just in case they are required in the future.
Tenants are required to pay by automatic payment. There is less chance of missing a payment.
When the tenant has a problem we visit them at the property. We are invited in and have the opportunity to view the property more than most Property Managers ever will.
Our overheads are lower so we do not have to hold huge amounts of properties to try and make ends meet this also in turn allows us time for ‘home visits’.
We place advertisements on the internet, in the local papers, and contact relocation companies where appropriate. We also erect signage where appropriate. Most of this cost is covered by the Admin fee which is paid by the tenant. A broader advertising budget can be discussed and is at the expense of the property owner, but this is rarely required in our current market. Telephone calls come directly to the office and potential tenants are personally shown through the property. No keys are given direct to potential tenants to view the property and the property is not left open and unattended for potential tenants.
Nobody can guarantee you the perfect tenants, however experience has shown that following good procedures does minimize the risks. All prospective tenants are required to fill out an application form. This form gives information about the tenants and they are required to supply details of personal referees and their current or previous landlord. It also authorizes us to do credit checks. All prospective tenants are reference checked and because we personally show them your property we are also in the position to form a personal opinion of them. We do decline tenants who have applied for properties when the reference checking does not satisfy our requirements
This depends on the market, the time of the year and the presentation of your property. The rental market is very competitive and like the sales market the well presented ones go first at the best price.
It is important to:
Present your property in the best condition possible.
Price the property at the correct level. Sometimes it is better to take a lesser rent and have little down time than ask top price but have the property empty for several weeks. If the property proves popular we are happy to put the prospective tenants into competition with each other in order to achieve the best price.
If you are purchasing a rental property feel free to call us and get an up to date rental appraisal. The selling agent may not always be the best person to ask.
A point to note; rents have not increased significantly over the years. The value of the property increasing does not automatically indicate that the rental price increases. We recommend allowing 3 - 4 weeks to find a tenant. It could happen sooner or it could take a little longer. Remember that sometimes the best tenants have to first give notice to their current landlord.
We put in place either a periodic or fixed term tenancy. This is put in place after consultation with you as landlord. We always endeavour to avoid having fixed term tenancies end in December or early January as this can be a difficult time to tenant properties.
The normal type of tenancy in New Zealand is referred to as a periodic tenancy. In general terms a periodic tenancy requires that a tenant must give 21 days notice prior to vacating a property. If the owner of the property wishes to shift back into the property they must give the tenants 42 days notice and if the property is sold the tenants must also be given 42 days notice to vacate, once the property owner has an unconditional purchase agreement.
Should the owner of the property wish the tenants to vacate for any other reason, 90 days notice must be given.
A fixed term tenancy is exactly that. The tenancy would commence on a fixed date and terminate on a fixed date. Notice to either party can not be given. So as the owner of the property you can not give the tenant notice because you wish to shift back into the property. If the property is sold you must sell the property with a sitting tenant.
With this in mind It is important that you keep us informed of your long term plans so that we can ensure that if you are returning to your home or wanting to sell it that the right sort of tenancy agreement is in place.
Tenants living in properties we manage pay a bond equivalent to three or four weeks rent. We prefer to take more bond and only 1 weeks rent in advance as this helps cover any short fall if there is some tidy up work to be completed at the end of a tenancy.
This bond is held with Ministry of Housing as per the Tenancy Act.
In New Zealand all tenancies are subject to the Residential Tenancies Act, therefore all clauses must comply with the act. Any clauses outside the act are unenforceable even if signed by the tenant. If you wish to have specific clauses please discuss them with us.
The tenancy agreement is completed at the property with the tenant. A joint inspection of the property forms part of the tenancy agreement and allows for any defects to be noted by both parties.
We have found that ideally the Properties need to be inspected 4 times a year. If you would like something different we are happy to discuss your requirements with you.
This is not inclusive of the initial inspection completed with the tenant before the tenancy commences or the final inspection completed when a tenant moves out of the property. Tenants must be given written notice of the inspection (a minimum of 48 hours) and inspections can be done only between certain hours.
Should any problems arise from the inspection, the appropriate work will be completed to fix the problem and a follow up inspection as required will be carried out.
The gardens and lawns are generally the tenant’s responsibility. If you have a lawnmower that you can leave behind at the property this often helps, but be aware you will have to service the mower.
If you have an extensive garden and require particular care be taken of plants it is recommended that you organise a gardener to maintain the gardens on a regular basis.
If the property is a multi flat (two or more flats in the same building) we will organise regular lawn mowing services for you. It is very difficult to ensure lawns are done if you leave the responsibility to 2 or more sets of tenants in the same building. Your property will soon start to look overgrown and untidy.
Trades People organised by Wise Property Management Ltd forward their accounts to us. We pay them on your behalf out of rents collected and the charges show on your monthly statement.
This is entirely up to you. You are best advised to seek some guidance from your Property Manager. However, it is a good idea to make whiteware an optional item that you could leave in the property for a tenant. You do need to be aware however that as the owner of the property you would be responsible for the maintenance on these items.
You can place your property on the market whilst tenanted. However, the Tenancy Act requires certain processes that must be followed. We can advise and follow these through for you. If you have a tenant in your property, which is on a fixed term tenancy you must sell that tenancy with the property. You must have a real estate agent that really knows what they are doing; we can recommend agents for the job. The important thing here is that all parties work together in this process and we establish a clear understanding. Being sales agents ourselves we rarely find the need to reduce the rent for the tenant whilst the property is being marketed.
All Tenants are required to pay their rent by automatic payment in advance. The payment comes through our trust account and rents are checked daily (we have a computerised system, which tells us whose rent is due on a specific day). We pay out on the 15th of the month and at the end of each month we compile a full statement for all property owners of the rents collected less all payments made on your behalf. (if the payout days fall on the weekend or a public holiday, rent will be paid the next working day).
The balance of the money is transferred to the owner’s bank account within the first few working days from the beginning of that month. As our system is automated you may find payment goes in on the first working day, but please allow a couple of days just in case of those unforeseen circumstances which can come up from time to time.
All rents and any other moneys received on behalf of our owners are paid into the trust account. This account is audited and does not form part of the operational bank accounts of our company. All payments made on behalf of the owner are also made from this account. Each owner's transactions are individually identified within this account and the account is balanced on a daily basis.
Owners are supplied with a monthly statement, which identifies all transactions during the month.
We operate 7 days a week. Our office hours are Monday to Friday 9.00am to 5pm. Should a tenant have an emergency after hours or at the weekend they have access to our mobile phone number in order to contact us. We also provide all tenants with a written procedure process in order to eliminate misunderstandings. If of an urgent nature, we take action immediately.
The weekends are used as the main days for showing prospective tenants through properties.
Nobody could give a guarantee of this nature. We are not at the property 24 hours a day 7 days a week, however we do our best to ensure your property is looked after. We do regular inspections and if there is a problem bring it to the tenant's attention and then follow up to see if it is rectified. We also make ourselves known to the home owners in the area and leave them our contact numbers ‘just in case’. If at the end of the tenancy something is not right we endeavour to come to an agreement with the tenant. If this is not possible we will put your case to The Tenancy Tribunal for them to make an independent decision on the matter.
Owners do need to be aware, however that there will be wear and tear on the property and at times accidents do happen.
Yes, rents received are viewed as income and need to be declared. Such things as maintenance costs, management fees, interest on mortgages and depreciation etc become expenses which you can claim. As we are not tax experts, we recommend that clients get independent financial advice. Information is also available on the Inland Revenue Department website www.ird.govt.nz.
You need to advise your insurance company that the property is to be rented. We recommend that you also take out what is normally called the "Landlords extension". This is similar to a contents policy which covers the landlord’s fixtures and fittings.