Information for Landlords
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1 Independent Property Management Limited P O Box 2134 TAUPO 3351 P M F: E: info@ipmtaupo.co.nz Information for Landlords
2 Property management should be a win- win for all. About IPM (Permanent & Holiday Homes) IPM is a locally owned and operated residential property management company based in Taupo providing a Virtual, Boutique Property Management service in Taupo, Turangi and surrounding areas. IPM takes pride in being able to offer good quality, clean, tidy and well maintained properties for people to live in. In return we expect tenants to look after the house as if it was their own and to pay the rent on time. This e- brochure is a guide to some frequently asked questions. It does not cover every aspect of tenancy law and is not legal advice. Refer to the Residential Tenancies Act 1986 (RTA) for the full details. General Information Property management should be a win win for all, but like anything there is some risk involved. Our aim is to minimise the risk by trying to get it right; right from the start; before anyone steps foot through the door. There are horror stories out there about tenants, landlords and rental property managers. Trashy reality TV shows do little to promote rental properties as investments for owners or for the property management industry. We certainly don t want to waste our time with trashy people and unnecessary problems. Tenants are important to us and you as a landlord should not have unrealistic expectations that tenant/s are going to float above the carpets! Your home will be their home and fair wear and tear on a property is to be expected. We will do our very best to ensure your property is being looked after. It is your responsibility to ensure all maintenance is taken care of. Think about any major repairs that may need doing such as new carpet or paint, upgrade of appliances and build this into the management of your property. It will spread the cost of maintaining the home in a good condition over a period of time. Standards on handover to IPM On handover of your property to IPM, please ensure your house is ready to be let before you give it to us to manage. For example: The house must be cleaned to a commercial standard throughout, particularly kitchens and bathrooms The lawns and gardens must be mowed and free of weeds All maintenance and repairs to be done prior to handover. Where this is not possible we are to be made fully aware of any issues We need two full sets of keys one set is given to the tenant and the other set we keep at the office. There must be a key for every lock Ensure the garage and any sheds are able to be locked and keys supplied Smoke alarms must be installed in the property that are fully functional Fire places are to be clean, chimney swept and checked for compliance no broken fire bricks Chattel Report & Pre Tenancy CD Photos Stored in Dropbox A detailed Chattel Report and photos are taken prior to the tenancy as a record of the condition of the property. It is important that the report is as accurate as possible to avoid any dispute about damage caused during or at the end of the tenancy. A property inspection will be done within the first two weeks of the tenancy starting date. Notice to access the property The tenant/s must be given 48 notice to gain access to the property for an inspection. Please do not just turn up at the property unannounced. This may be deemed unlawful and the penalties are not cheap. Give us a call should you need to access the property and we will take care of the arrangements. 2
3 Plenty of care is taken when selecting the best possible tenant/s on merit Rent Arrears - What happens when the tenant doesn't pay the rent? One day late: The tenant will receive a phone call, txt or Two days late: A 14 Day Notice will be sent to you An application may be lodged with Tenancy Services prior to the expiry of the Notice. A filing fee of $20.44 is paid with the online application. (Payable by the owner and recovered and payable by the tenant) Bond A bond is held over the property, which can be the equivalent of up to four weeks rent. All bonds collected are lodged with the Department of Building and Housing within 23 working days of the tenancy start date. The Bond is retained until the tenancy ends. If things go wrong, and the tenant doesn t pay rent or causes damage to the property, we can ask for all or some of this money back to cover any costs. When do I get paid? Rental income received from your tenant is paid directly in to the IPM Rental Account. Payments are processed on the 16th of each month and the first day following the previous end of month and paid by Direct Credit into your nominated bank account. Should this fall on a weekend or a public holiday then it will be processed on the next business day. Statements are ed at the end of the month and show all transactions for the month processed. Address for Service IPM PO Box 2134, Taupo 3330 This is the address where important notices in relation to the tenancy will be sent to. Tenant Selection All prospective tenants must complete an application form and supply information to support the application. All applications are checked thoroughly based on the information supplied. While this is not 'bullet proof' plenty of care is taken when selecting the best possible tenant on merit. Approved tenant applications will be presented to you for acceptance. On acceptance we will meet with the tenant/s to go through the Tenancy Agreement so they are fully aware of their obligations as a tenant and the responsibilities of the Landlord/Agent At a minimum the tenant has to: Pay the rent on time Keep the place reasonably clean and tidy Tell us if anything needs fixing Give 21 days notice to vacate if they have a periodic tenancy Market Rent Rent is comparable to the rent charged for other properties of a similar type, size and location. The market changes at different times for any number of reasons. Factors that have an impact on rent are employment opportunities and supply and demand. Tenant Rent Rent starts on the first day of the tenancy and must be paid on time and kept in advance as specified in the Tenancy Agreement. IPM have a 'Zero Tolerance' to rent arrears and act quickly should rent fall into arrears. All rent payments are paid by the tenant by Direct Credit into IPM s nominated bank account. 3
4 Give us a call should you need to access the property and we will take care of arrangements Repairs & Maintenance Repairs & Maintenance are a major point of contact between Independent Property Management Limited and its tenants. It is used as an opportunity to improve relationships with Tenants and improve the overall satisfaction with the properties and service we provide. We are pro- active in the maintenance of your property and the value of the asset and as a home for tenants. How do we Identify Maintenance? The tenant contacting our Property Manager Our team undertaking regular property inspections Chattel lists specific to each property How do we Prioritise Maintenance? Maintenance that affects the health, safety or security of our tenants is undertaken first and would be considered urgent. Where possible we will make contact with the Landlord to advise of any repairs and maintenance required unless instructed otherwise. Tenancy Tribunal The Tenancy Tribunal is a Court set up to deal with unresolved problems between landlord and tenant. Sometime these can be resolved by phone mediation. Where this is not possible we may ask for a hearing, which is more formal than mediation and usually heard in the Taupo District Court. An Adjudicator makes a decision based on evidence the landlord or tenant brings to the hearing. The decision is binding on both parties. Where possible this may be dealt with by phone mediation Unlawful Acts Either a tenant or a landlord can be awarded exemplary damages in the Tenancy Tribunal for actions that are unlawful. For a full list refer Residential Tenancies Amendment Act 2010 URGENT Urgent Same day response - For example: A burst water service A blocked drain or broken toilet system Electrical fault Broken or missing fire bricks A fault or damage that is likely to cause injury to person or property A fault or damage that causes the property to be unsafe or insecure Not so Urgent within 2-4 days - For example: A non- essential part of the stove is not working Dripping or leaking taps that are not gushing water Taps that can t be turned on Scheduled Maintenance For example: Internal door handle is loose or fallen off A window that is difficult to open Interior or exterior painting work Repairing, or replacing parts of a property that are below standard may be planned depending on the life span of the item such as floor coverings, kitchens, bathroom, fencing. Can a landlord hold a tenant s goods for non- payment? No. The only person who can seize goods for non- payment is a bailiff of the court. Landlords cannot seize a tenant s goods for any reason. Property Inspections We will meet with the tenant/s within the first two weeks of the tenancy start date. Regular inspections will be made every four months. We are lawfully able to inspect the property every month should there be reason to. We also have a great network of people in the community who let us know if there is anything that needs checking out in a house. Landlords are more than welcome to attend inspections please notify the Property 4 Manager.
5 We want your tenancy with us to be a great experience What are some of the Landlord s responsibilities? Summarised as follows: Maintaining properties in reasonable repair Responsible for pruning trees and cutting back hedges Annual: Cleaning the gutters - annual Cleaning of the chimney - annual Undertaking repairs to ensure properties are safe, secure, clean and fit to live in What are some of the Tenant s responsibilities? Summarised as follows: Keeping the premises clean and tidy Maintaining the lawns and gardens; however, if there is a set of flats with common ground, the Landlord will normally be responsible To notify us of any damage as soon as possible and taking all steps to ensure further damage is minimised Leaving the property in the same condition (as set out in the chattel list) at the end of the tenancy, excepting reasonable wear and tear What about small repairs? Tenants may fix minor repairs if he/she is competent to do so. For example: Loose fence paling Re- screwing loose cupboard handles Under no circumstances will repairs or maintenance be done by unqualified professionals i.e. electrical wiring or plumbing that may result in further damage and Non- compliance with your insurer. Accidental damage can and does occur. I.e. paint chips, small dings, moving furniture etc. We will notify you of this and set a course of action such as a contribution to the owner/or repair. Vehicles No unwarranted, unregistered vehicles are allowed on the property. All vehicles are to be parked in the space provided and not on the grass. Pets Under no circumstances are pets allowed inside or outside the property unless authorised by us. If pets are found at the property then tenants will expect a visit from the Dog Control Officer. Smoking IPM has a 'NO SMOKING' Policy. Under no circumstances are tenants or tenants guests or invitees allowed to smoke inside. Smoking is only permitted outside the property. Cigarette butts are not to litter the section. IPM / Tenancy Debt Collection We offer a Debt Collection Service and may be able to help you recover outstanding tenancy debt. Our fees are structured on successful collections and depending on your Terms of Trade we may be able to recover all the debt with no cost to you Debts lodged with a current address for service, , phone numbers and court order have a greater chance of recovery. Recent changes to the District Court process has made it easier to recover debts through the District Court. The Lines Company Ltd The Lines Company Ltd provides a line service to the property and you will be invoiced directly (in between tenants). This is in addition to invoices received for power usage in the property. A bond will be charged by the Lines Company and all Lines charges are payable by the tenant/s. This system does not apply to some areas of the Lake Taupo District. (All other areas have the line charge included on your power account). 5
6 All matters are priority based and we aim to respond to all repairs and maintenance in a timely manner Meth Management Sticking your head in the sand is not good enough. To be sure your rental is free from the dangers of 'Meth' Meth manufacture and use has been a problem in NZ for at least 15 years. So the risk of buying or renting a meth affected property is much higher than people would ever imagine. Contamination of a property can occur in a matter of hours, yet it persists for years unless properly cleaned. What's the Risk to You? Decontaminating a property costs tens of thousands of dollars and the property may be condemned. Property contaminated by meth is seriously unhealthy - are you happy to risk your family's health? Insurance, if any, is a capped amount that may be a fraction of the cost of decontamination Property with a meth history will affect the value of your property Loss of rental income while decontaminating, and rental payments being clawed back by tenants that have lived in a contaminated property. Landlords do have a responsibility under the RTA 1986 section 45(1)(a) to protect tenants from the harmful effects of 'Meth' lab contamination. Is it Clean? Service MethDNA sampling and test kit has been developed in conjunction with one of New Zealand's leading environmental testing laboratories. The kits primary function is to provide a good indication if meth contamination is present. Test limits better than Ministry of Health Guidelines Tests multiple areas with one kit Samples taken by Robyn Sherburd - Certified Meth Sampler Samples tested in an independent laboratory High accuracy results Tests available in a week From as little as $99 + GST Peace of mind knowing your property is MethSafe Premium rent per week Meth Management (continued) At IPM we work in conjunction with MethSolutions to undertake testing on property in the Taupo District Area. Our aim is to encourage existing clients to have the meth test done and to continue meth management. New clients are strongly advised to have their property tested prior to IPM managing the property. Keep it Clean Service MethMinder - is an affordable, 24/7 overt monitoring system installed into a rental property. This continuously samples air quality. MethMinder targets chemicals that are specific to the meth manufacture process. From $ GST a month MethMinder provides peace of mind for owners and law abiding tenants alike. Meth Management Service Is the testing of property on handover to IPM with ongoing meth testing in between tenants to minimise the risk of contamination. From $99 + GST. The Benefits: Protecting the value of your asset and income Reducing Condensation in your Home Moisture is produced on a daily basis from activities such as cooking, breathing, washing and showering. Moisture evaporates when it s warmer and can form condensation when it s colder. It is the tenant s responsibility to ventilate the home by opening windows and wiping down surfaces, particularly in bathrooms and on windows and frames to remove mould and or mildew. Extractor fans vented outside will help reduce moisture in` the home. 6
7 we will do our very best to ensure your precious asset is looked after Holiday Letting Service We offer a professional management service for holiday home owners and use Bookabach; New Zealands most trusted and recognised holiday rental website to setup, market and manage your property. We are looking to expand into all areas of the Lake Taupo District Taupo / Motuoapa / Western Bays and anywhere else in between. Our dedicated holiday team will care for your property to make sure it is guest ready, clean and well maintained. We focus on maximising the rental return on your investment and ensure all guests have the best possible stay. Casual Letting Service We offer a Casual Letting service for owners who want help selecting a tenant/s and completing the documentation. We know the area well with excellent industry knowledge and contacts to get the job done efficiently. Private landlords can be a target for bad tenants who may not have the tools at their disposal to successfully carry out the letting process and for some this may have disastrous consequences. Our Casual Letting Service Includes A rental appraisal free of charge Advertising your property on Trademe Organising viewings with prospective tenants Reference checking Preparing the Residential Tenancy Agreement Lodgement of the bond with the Department of Building and Housing Detailed Chattel Report Photographic property records Once all the documentation has been completed the property is handed back to the owner to manage and our involvement between all parties is at an end. Non- Urgent Police Taupo Police Turangi Fire Ambulance Taupo District Council (Includes Civil Defence and Noise Control) Electricity and Gas This is the responsibility of the tenant/s Unless other arrangements have been made. Tiny Mighty Power King Country Energy The Lines Company Genesis Contact Energy Our Preferred Trades Person is: Taupo: Alex Stewart Electrical Kevin Insley Electrical Tim Wall Plumbing JAE Carpet Services Vince & Yvonne Alum n Glass - TPO & TGI Graeme Rigby Plumbing & Gas Company Chimney Sweep & Smoke Alarms Kevin Condon or Turangi: Alex Marnoch Electrical Almo s Plumbing Thank You If there is anything that we can assist you with please call us. Or phone the Department of Building and Housing on 0800 Tenancy ( ). We would like to take this opportunity to say 'thank you' for your business We want your tenancy with us to be a great experience. From the team at IPM 7
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