Property Management. Hands On Property Managers

Transcription

1 Property Management First Property Rentals 1280 Pukuatua Street, Rotorua PO Box 470, Rotorua 3040 P: F: E: W: Hands On Property Managers First National Property Rentals

2 Our Team Steve Coates Property Manager DDI: Mob: Melissa Ruebe Property Manager DDI: Mob: Cushla WIlmshurst Administration & Accounts DDI: Murray Piesse Director DDI: Mob: Mission Statement Our aim is to provide a quality service by creating a postive environment conducive to building long term relationships. 2 Hands On Property Management

3 Introduction There are many factors to consider when purchasing a residential investment property. Regardless of the location of your investment property a number of things remain constant. Firstly the amount of rent you expect to get for your property is determined by the market demand for properties similar to yours. If you have the sort of property that appeals to tenants, you ll have more interest and therefore will generate more income. It makes sense therefore to learn about the sort of features that tenants most commonly ask for. This booklet is designed to guide property investors as to what tenants look for when renting a property. As always please consult a financial expert before making any investment decisions. 3 docsonrentalreception/ptymmentbooket/booklets/pmment Contract Booklet - Nov 2012 First National Property Rentals

4 Peace of Mind Property Management We offer you first class service, with the strength and accountability of local ownership while providing an organisation that is nationally recognised. Mutual Objectives Continuity of income that is market adjusted Maintaining an asset to provide capital growth Finding and retaining good tenants to minimise unnecessary wear & tear Meeting the ever changing obligations under the Residential Tenancies Act We understand and are committed to providing a well trained, enthusiastic team that will help you meet your goals and give you: Peace Of Mind Property Management 4 Hands On Property Management

5 Our Property Management Service Some of the numerous advantages to you the investor are: Collection and monitoring of rent payments Prompt dispersal of rent monies - we disperse bi-monthly & monthly from our audited computerised system Arranging cost effective repairs & maintenance Paying of relevant accounts if required i.e. rates, insurance etc Inspections are completed four times annually. Making prompt contact with tenants who are late with rent payments. We follow up rent arrears diligently & we enjoy an excellent reputation with the Tenancy Tribunal, this, plus our knowledge of the legislation helps us minimize rent loss. Drawing of Legal Documents Careful selection & thorough screening of tenants Collection and control of Bond, depositing with the Tenancy Services of New Zealand Mediation & Court appearances if required Saving you cost on expensive advertising Regular updates of potential investment opportunities; Buying & Selling Advice about the Market All of the above services are part of our Management Service and are tax deductible 5 First National Property Rentals

6 Our Property Management Service Tenant Selection We use our experience gained from daily contact with prospective tenants to find a good match of tenant for your property. At any time our office holds a register or pool of people who have come to us specifically looking for a property to rent. Special care must be taken when choosing a tenant to ensure compliance with the Residential Tenancies Act 1986 (Race Relations act 1971 and the Human Rights Commissions Act 1972). Our service includes carrying out credit checks and obtaining character and/or rental references on all potential tenants. Rent Collection Property Management First National has a proven modern accounting system. Under the Real Estate Agents Act 1976 it is subject to independent audits at regular intervals. If a problem should arise with unpaid rent we undertake immediate and prompt action to resolve the situation. The rapport we have established with the tenant is usually a real plus in reaching a conclusion. Arrears Policy Arrears are monitored daily. If a tenant misses a payment and falls into arrears: Tenant is issued a 14 working day letter Tenant may be given the option of paying arrears by weekly instalments if that is the most effective resolution If a tenant fails to comply with a 14 working day letter: Court action will be instigated by way of mediation A lodgement fee of $20.44 is passed on to the Landlord A mediated order and agreement may be reached, often resulting in payment by weekly instalments with a provision that failure to adhere to the order will result in termination of tenancy If the 14 day letter is breached or the rent is more than 21 days in arrears we request the court to terminate the tenancy Owner will be notified of the outcome of the mediation or court action. 6 Hands On Property Management

7 Our Property Management Service Maintenance We have a team of professional qualified trades people on call, they cover emergency repairs, planned and regular maintenance to ensure prompt and efficient service to both landlord and tenant. Bonds Property Management First National has systems in place to deal with all aspects relating to Bonds - collection, lodgement, refunds, transfer and disputes. Bond payments are lodged at the Bond Processing Centre and cannot be released unless both parties agree, a maximum Bond of the equivalent to four weeks rent can be charged legally. Insurance Landlords should insure their rental properties for replacement value. Chattels should also be covered i.e carpets, drapes, furniture and fittings. Inspections We assist landlords in identifying potential problem areas and recommend remedial work before the problems become major ones. The key is our regular and systematic inspections which help landlords maintain the condition and value of their properties. With new managed properties a comprehensive first inspection is conducted and details of the condition of the property and chattels are recorded using the latest technology of an Ipad. All properties are inspected 4 times annually. Following each inspection the landlord receives a written report with any recommendations. 7 First National Property Rentals

8 Hot Tips For Investment Properties Fix obvious defects between tenancies, doors that don t shut, broken windows (even in the garage) or leaking taps inside or outside. Water blast the exterior, pathways and driveway annually. Take the opportunity between tenants to touch up the kitchen, bathroom areas & do extra cleaning. Install ventilation in the kitchen and bathrooms. i.e. fans, security latches. Keep your grounds simple. It costs less to keep up grounds if they re not cluttered with trees and other features. It also deters tenants from chucking rubbish in the bushes & compost piles etc Regularly prune shrubs and trees. If you re buying flats, consider buying the whole block. You ll save money on the purchase price compared to individual units and maintaining six flats in one building is considerably cheaper than six individual flats in different locations. Insulation/heating. Council law for hot swap. Hot Swap Information Eco Insulation Information about subsidies Hands On Property Management 8

9 More Useful Information Repairs and Maintenance The cost of any repairs and maintenance that you do (or pay someone else to do) on the rental property is normally tax deductible as an expense. However, there are some circumstances in which you cannot deduct the cost of repairs as an expense: If you buy a run-down property and spend considerable amounts of money on substantial improvements or alterations before renting it out, the cost of the work would count as part of the cost of buying the property. You can t claim the cost of these improvements as an expense, but you can capitalise the costs and depreciate them. If you carry out work which substantially improves the property, you will also have to capitalise the costs and depreciate them. For example, if you take down a badly deteriorated wall and put a conservatory in its place, you will have to capitalise and depreciate the cost of the work. In some situations, it can be difficult to work out whether work carried out on the property is repairs and maintenance or capital improvements. Contact your local Inland Revenue office if you re in doubt about a situation. Ask for Taxpayer services. Motor Vehicles or Other Travel Expenses If you run a motor vehicle in the course of renting out your property, you may be able to claim some vehicle running costs as an expense against your rental income. Agents Fees and Commission If you use an agent to collect the rent and/or maintain the property, you can deduct the cost of the agent s fees. Commissions paid to an agent to find tenants for the property are also deductible. Depreciation You must claim a deduction for depreciation on the rental property and any furniture or fittings in it which belong to you. Depreciation is an allowance to cover the cost of wear and tear and general ageing of the building and its contents. Expenses that you can t deduct for Tax Purposes For tax purposes, you can t deduct capital or private expenses from your rental income. Capital expenses are costs you incur to buy or increase the value of a capital asset. Private expenses are incurred for your own benefit and are not connected with producing capital income. All of these things are non-deductible expenses: The purchase price of a rental property. The capital part of any mortgage repayments. Interest on any money which you borrow for some purpose other than financing the rental property, even if you use the rental property to secure such a loan. The cost of repairing or replacing any damaged part of the property, if the repairs or replacement make improvements to the property which increase its value. Real Estate agent s fees and legal fees incurred as part of buying or selling the property. The cost of making any additions or improvements to the property. Information provided By Inland Revenue 9 We strongly recommend that you seek advice from your Accountant/Solicitor First National Property Rentals

10 There is no doubt that a well presented property will achieve top rent and will usually attract the best quality tenants Property Presentation First impressions are critical when a prospective tenant inspects your property. First, you need to decide what sort of tenant you are targeting. There are tenants who want to save money and are happy to live in a property that is not in first class condition. There are others, such as professional people, who are happy to pay top rent, but expect the property to present at its absolute best. There is no doubt that a well presented property will achieve top market rent and will usually attract the best quality tenants. That adds up to a higher investment return, together with fewer and shorter vacancy periods. A good property manager will insist that your property is very clean and at its best possible condition before letting tenants move in. Here are a few presentation tips: Tend to the gardens, mow the lawns and clean the windows, paths, gutters and outside paintwork. These are all things seen from the street and you don t want prospective tenants to dismiss the property before getting to the front door. If you present the property well from day one, it also sets the standard of care and upkeep that is expected from the tenants. Repair or replace leaking taps, sticking doors, broken light fittings, loose door handles and leaky gutters. All of these things can distract the potential tenant and gives the impression that the owner doesn t care about the property. If you are thinking about painting, only paint those areas that really need it unless you plan on doing the lot. New paint may only make those areas left unpainted look even shabbier. Use light, neutral colours as strong colours may not be to the tenants taste. 10 Hands On Property Management

11 Presentation Tips Continuted... If your property is in a noisy area such as a main road, school or shopping centre inspection times should occur when noise is at its lowest. Get rid of odours that you may not notice but prospective tenants will, such as cigarette or pet smells. Have the carpets and blinds cleaned, neither of which is very expensive. Furniture in a property can make a big impact. If you want to increase the number of inquiries that you get, it maybe worthwhile to hire good furniture for one day and get some professional photos taken. You will be able to use these photos every time you rent the property out so even if your current tenant is very messy, the property will present very well when listed online or in promotional flyers. This strategy works well for all property types but is particularly successful with premium properties. For a good example of the difference furniture can make, look at building display show homes as they have mastered this technique. We all know first impressions count and a well presented property can help achieve higher rent from tenants. 11 First National Property Rentals

12 Frequently Asked Questions: Q: How do I change my property over if it is currently being managed by another agent? Simple! If you currently have a property managed by another agent and you re not satisfied with the service you are getting and would like to change over to First National Property Rentals, all you have to do is fill out the Property Management Authority Form on pages 16, 17 & 18 of this brochure appointing First National Property Rentals as your new Property Manager and we will take care of everything else for you. We will organise for the tenant to be notified and for the keys to be collected from your managing agent. Everything else carries on as usual. Changing your managing agent could never be easier. Q: How long will it take to find a tenant for my property? This is a common question and there is no guarantee on how long it takes to rent a property however the better your property is presented & the more realistic the rental amount you are asking, the quicker it will rent out. Q: What happens if my tenant doesn t pay rent? We monitor tenant arrears on a weekly basis. When a tenant is in arrears we will contact them via telephone, and SMS (text message). If the tenant s rent is less than 21 days in arrears, we will send the tenant a 14 days notice, we can apply to the Tenancy Tribunal and ask for arrears to be paid under section 56 of the Residential Tenancies Act We can apply to the Tenancy Tribunal before the 14 days notice expires. Under Section 56, we can request that the tenancy continues while rent arrears are repaid. However, we can also request an order is made to: Terminate the tenancy if the mediated order is not adhered to. Release the bond if the arrears are not paid & the tenancy is terminated. If the tenant s rent is more than 21 days in arrears, we can apply to the Tenancy Tribunal for help under Section 55 of the Residential Tenancies Act It is our intention at all times to minimise any loss to the owner so these actions need to be carried out promptly. 12 Hands On Property Management

13 Take the worry out of Property Management. Let First National Property Rentals be hands on so you don t have to be. Talk to us today about our competitive management fees and incentives Pukuatua Street, Rotorua PO Box 470, Rotorua P: E: rentals@rotoruaproperty.co.nz F: W: First National Property Rentals

14 Property Details Chattels Conditions Address 1280 Pukuatua Street Rotorua 3010 PO Box 470 Rotorua 3040 Property Management Authority Contact P (07) F (07) E rentals@rotoruaproperty.co.nz W Property Address: Features: Bedrooms: Bathrooms: Garaging: Off-street Parking: Property Type: Furnished/Unfurnished List of Chattels attached: Yes No The property is available for sale: Yes No Approximate time property will be available for tenanting Either: A minimum of months from / / or A fixed term from / / to / /. Refer to landlord before renewing Fixed Term: Yes No Inspections - Frequency: Please circle which applies: Stove Rangehood Fixed Floor Coverings Blinds Net Curtains Drapes Light Fittings Fridge Dishwasher Washing Machine Dehumidifier Drier Waste Disposal Alarm Heat Pump & Remote/s - (How many) Other Chattels: Do You Have Compliant Smoke Alarms In The Property: Yes No How many: Is there a TV aerial, satelite dish or cable suitable for digital TV at the property Yes No or It is agreed a suitable apparatus will be installed: Yes No or The property does not currently have a TV aerial, satelite dish or cable suitable for digital TV and I/We agree to any tenants installing their own and removing it at the end of the tenancy. Yes No Are Pets Allowed at the Property: Yes No if yes; The tenant may have the following at the property: Animals: Dog Cat Caged Bird Fish Maximum no. of people may reside in the premises Smoking: Allowed/Not Allowed Keys for property: (A minimum of 2 sets of keys must be supplied for the property) Key Number: Deadlocks Door Remotes Security Doors Sleepout French Doors Letterbox Window Locks Front Door Back Door Garage Ranchslider Shed Garden Shed Alarm: Yes No Expected Rent: Accounts to be paid by First Property Rentals Ltd Local Body Rates: Yes No Water Rates: Yes No Separate Water Meter Per Tenancy: Yes No Date Meter Read: / / Frequency: Tank Water: Yes No Pump Last Serviced: / / Age Of Fixed Floor Coverings: Insurance to be paid by Landlord Insurance Company: Contact: Name/Broker Policy Number: Do You Have Window Insurance Included In Your Policy: Yes No Lawnmowing: Yes No Would you like this to be included in the rent: Yes No Body Corporation Levies: Yes No Body Corporation Details (if any): Manager: Phone: Building Manager: Phone: Body Corporate No: Other Payments: 14 Hands On Property Management

15 LANDLORD S STATEMENT ABOUT INSULATION A. The tenancy Agreement must contain a signed statement from the landlord that details information about the location, type and condition of all insulation in the premises and other matters. I. Has any insulation been installed in the ceiling, floors or walls of the premises? (Please circle the one that applies) Yes No B. Please describe in the space below the extent and location of insulation, product type and condition of the insulation. Please provide documentary evidence and attached to this agreement if necessary. It is recommended that the landlord also show the tenant the locations of insulation in addition to this written statement. (Please circle the one that applies) I. Location of insulation: Floor Ceiling Walls II. Your statement about insulation should include: 1. Where the insulation is, its type (and R rating if know) and condition; 2. If you have been unable to obtain information about insulation in a particular location, an outline of what you have not been able to obtain and why, and confirmation that you have made all reasonable efforts to obtain the information; and 3. This includes if you have been unable to determine all of this information. 15 Property Address: Landlord Name: Signature: Date: Hands First National On Property Property Management Rentals

16 Owners Details Name (s):.... Home:... Work:.... Mobile: Please indicate if you would prefer to have your monthly statements: ed (Free) or Posted ($5.00 charge) Contact Address: Address for Statements: Direct Credit Funds to the Account of: at the (Bank) Branch: Code: Funds lodged into Bank Account as above: Monthly and Mid month Emergency contact: If the owner is unavailable is this person able to make decisions on your behalf? Yes / No Phone: Bus: Res:.... Mob: Solicitor (M) of:.... Ph: Special Instructions (if any) Authority 1. Management I/We appoint First Property Rentals Ltd to manage the property and authorize you: (i) To let the property when required and to prepare and sign Tenancy Agreements on your behalf. (ii) To set new rent levels from time to time so that the property remains reasonably tenanted and reasonably reflects the current market level of rents for such properties. (iii) To collect a bond to be paid to Tenancy Services on our behalf and when the tenancy is terminated I/We authorize you, after you inspect the property, to approve the refund to the tenant on our account of all or part of this bond as you in your judgment decide is fair and reasonable. (iv) To collect rent from the tenant by automatic bank payment or any other method of collection which is acceptable to you. (v) To pay all the expenses itemized in the authority provided you hold sufficient funds to my/our credit. (vi) To file applications and to attend Mediation and Hearings at the Tenancy Tribunal on your behalf and wherever possible to act on any Orders issued. (vii) To if necessary appoint a debt collection agency to pursue any outstanding amounts from tenants. (viii) To send us statements as soon as possible after your balance date at the end of the month. 2. Repairs I/We authorize you to spend up to one week s rent or $... on any one repair without reference to me; Except where the failure to complete the repairs might endanger the tenants or occupants health and safety or the Tenancy Tribunal makes a Work Order and there is limited time to comply with the Order, all other repairs must have my prior approval. 16 Hands First National On Property Property Management Rentals

17 3. Fees I/We agree to pay you: On gross rent collected the sum of On maintenance work completed Mediation application Fee On completing inspections Advertising costs for Trademe website On the payment of each credit check fee... +GST... +GST $ GST $ GST $ GST $ GST 4. Resource and Building Consents (a) I/We warrant that the property has all relevant building and resource consents and complies with all council requirements as to building, health and safety and fencing of swimming pool and spa pool. (b) I/We are not aware of any pending or existing weathertight issues effecting the building. (c) I/We to the best of our knowledge advise that the property has not been used for the production, manufacture or use of any illicit substances. 5. Tenancy Agreement I/We acknowledge that our name/s will be declared on the Tenancy Agreement and further acknowledge that if the property is in the name of a Trust or a Company, First Property Rentals Ltd will be required to issue on our behalf 90 days notice instead of 42 if we or any member of our family require the property for our own use. 6. No Liability for Damage/Arrears of Rent First Property Rentals Ltd shall use its best endeavors to ensure continuity of occupation at market rentals and maintenance of the property, but shall not be liable to the Owner(s) for any defaults in payment of rent or any damage caused to property by any tenant or other payment due by the tenant or otherwise, whether or not the tenancy has been arranged by First Property Rentals Ltd. 7. Privacy Consent I agree to information relating to the property being passed to any person for marketing purposes and for the compilation and distribution of statistics. 8. Cancellation This Authority may be terminated by either party giving one months notice in writing, and shall be sufficiently served by being delivered or being posted to the contact address for the owner referred to in this Authority, and in respect of First Property Rentals Ltd to the branch in the box on this page. I/We as owners acknowledge and agree that if a dispute between the owner and the agent shall arise which affects or concerns the safety of the tenancy premises and such dispute cannot be resolved to the satisfaction of the agent then the agent at the agent s sole discretion shall have the right to terminate this management agreement forthwith by the agent giving written notice to the owner in terms of this clause. 9. Chimney I/We authorize you to have the chimney cleaned annually to comply with Health & Safety and Insurance policy requirement. Yes / No 10. Subject: Indemnity clause I/We as owner/s acknowledge, I/we indemnify the agent against all actions, claims, costs and expenses whatsoever, which may be taken or made against the agent or incurred by the agent, in the course of and arising out of the proper performance of the agents duties as the property manager or the exercise of any powers, duties, or authorities contained in this management authority. I/We acknowledge that with this appointment First Property Rentals Ltd, under the terms of the Residential Tenancies Act, shall be deemed to be the landlord. I/We have agree that by signing this Authority warrant that I/We are the owner/s of the rental premises or are authorized to enter into this Authority and have the authority to make this appointment. 11. Body Corporate I/We agree to advise the property manager of any Body Corporate Rules that may apply and to provide copy of same rules. Signature of Owner(s): Date:.../.../20... Signed by First Property Rentals Ltd:... Print Name:... Date:.../.../20... This management is arranged by: First Property Rentals Ltd. Property Manager: Address: Phone: Melissa / Steve 1280 Pukuatua Street, Rotorua rentals@rotoruaproperty.co.nz 17 Hands First National On Property Property Management Rentals

18 Notes 18 Hands On Property Management

19 Notes 19 First National Property Rentals

20 First National Property Rentals 1280 Pukuatua Street Rotorua p f w. rotoruafirstnational.co.nz w. firstnational.co.nz rotoruafirstnational.co.nz Hands On Property Management