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	<title>Property Blogs &#187; Tenants</title>
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	<link>http://propertyblogs.co.nz</link>
	<description>Just another Propertyblogs.co.nz weblog</description>
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		<title>Advice for Tenants When Renting a Property</title>
		<link>http://propertyblogs.co.nz/2010/07/22/advice-for-tenants-when-renting-a-property/</link>
		<comments>http://propertyblogs.co.nz/2010/07/22/advice-for-tenants-when-renting-a-property/#comments</comments>
		<pubDate>Thu, 22 Jul 2010 02:45:42 +0000</pubDate>
		<dc:creator>Simon Allen</dc:creator>
				<category><![CDATA[Tenants]]></category>
		<category><![CDATA[Renting a property]]></category>
		<category><![CDATA[tenant]]></category>

		<guid isPermaLink="false">http://propertyblogs.co.nz/?p=868</guid>
		<description><![CDATA[At some stage in your life, be it short term or long term, you will probably end up renting a home to live in. This will probably be done through a property manager or private landlord.]]></description>
			<content:encoded><![CDATA[<p><a href="http://propertyblogs.co.nz/files/2010/07/tenant.jpg"><img class="alignright size-thumbnail wp-image-878" src="http://propertyblogs.co.nz/files/2010/07/tenant-150x150.jpg" alt="42-15997889" width="150" height="150" /></a>At some stage in your life, be it short term or long term, you will probably end up renting a home to live in. This will probably be done through a property manager or private landlord. Usually the manager or landlord will focus in securing a good outcome for the owner of the property and will not go out of their way to make sure that the property in question ticks all the boxes with regards to your criteria as a tenant. It is solely your responsibility as the tenant to ensure the property you are applying for suits you. If the owner decides to accept your application to rent a property and you sign a tenancy agreement, then you have various obligations to meet so you can’t just change your mind.</p>
<p>Your tenancy will be governed by a Tenancy Agreement and The Residential Tenancies Act. After decades of renting properties to tenants on behalf of property owners we have put together this list of important issues for you as a tenant to consider when choosing the right property for your family. This will hopefully reduce the potential for problems with landlords and save you time and energy.</p>
<p>Most tenants main criteria when looking for a property is location. You should narrow down locations that you wish to consider prior to beginning your search to save you time. Auckland is a big city so there is no point in viewing a property unless you are happy with the location. Key points to consider when considering an area is the proximity to local schools, transport, shops and other infrastructure, as well as proximity to your family and place of employment.</p>
<h2>What should I expect from a suburb?</h2>
<p>Presentation of the neighbours, their vehicles and properties give you an indication of the types of people that live in each street. A drive-by down the main roads will show you what facilities/amenities and goods and services are available in the area.</p>
<h2>How do I research a suburb?</h2>
<p>You can use technology to your advantage by using Google maps to assist you with your research. Google maps provide a map view and also a satellite image view so you can check out photos of the location via the internet prior to inspecting. Never make a decision on a specific area based on what a landlord says eg. “This is a good street” as you need to satisfy yourself to that regard! You can also check <a href="http://www.schoolzones.co.nz/enrolmentzones/" target="_blank">schoolzones.co.nz</a> to find out more about the local schools. Reading local community newsletters will also educate you on the area and what it has to offer. You can read community newspapers online at <a href="http://www.stuff.co.nz/auckland/local-news/" target="_blank">stuff.co.nz/auckland</a> .</p>
<p>You can use various websites to find and compare rental properties. Try <a href="http://www.allenrealty.co.nz" target="_blank">www.allenrealty.co.nz</a>, <a href="http://www.trademe.co.nz" target="_blank">www.trademe.co.nz</a> or <a href="http://www.realestate.co.nz" target="_blank">www.realestate.co.nz</a>.</p>
<h2>What rent will I pay?</h2>
<p>The location will influence the majority of the rent. Some of the rent will be influenced by the amenities and condition of the specific home. Market rents are affected by demand and supply in each suburb so if rental properties are in high demand in that area you can expect to pay more. As a general rule, the closer a property is to the city centre the higher the rent. You can view average rents for most Auckland suburbs on the Allen Realty website <a href="http://www.allenrealty.co.nz/Landlord+Services/Auckland+Market+Rent+Statistics.html" target="_blank">www.allenrealty.co.nz</a></p>
<p>When you finally choose suburbs to concentrate your search on there are specific issues you should look at. This will ensure that you end up with a property that ticks all your boxes that you will be happy with long term.</p>
<ul>
<li><strong>Security</strong>: Check locks on all doors and windows – most properties are rented ‘as is’ so property owners won’t necessarily be obligated to upgrade something.</li>
<li><strong>Maintenance</strong>: Assess what you will have to maintain as part of your tenancy eg. whose responsibility is the lawns and gardens? Hedges should generally be a joint responsibility with tenants and owners. Do you maintain the swimming pool or does the owner? Who sweeps the driveway or maintains any common areas?</li>
<li><strong>Insulation</strong>: Make sure that you are satisfied with the property and confident that it will be warm and dry. Look for signs of discolouration on flooring, paintwork, and window coverings (curtains/nets) which show evidence of any moisture. Remember that most rental properties will suffer from some degree of moisture. Make sure properties have adequate ventilation. If you can open windows regularly and operate fans or heat pumps then this will assist with airflow and reducing moisture.</li>
<li><strong>Noise</strong>: The location of the property will affect the amount of noise you should expect. If a property is on a main road or in the CBD you should expect a certain amount of associated noise. If there is a building site next door you should also expect some noise. Often apartments in the CBD have double glazing which will help reduce this issue. The owner of the property cannot directly affect or change this aspect of a property so it is important that you do your homework.</li>
</ul>
<p>When you choose a property to apply for and a landlord accepts your application then you will have to negotiate a tenancy. The following issues need to be negotiated first, as once you sign a tenancy agreement it will be too late to change your mind.</p>
<ul>
<li><strong>Tenancy Term</strong>: The landlord and tenant should agree when the tenancy starts and if it is a fixed term (eg. 6 or 12 months) or a periodic tenancy (month to month).</li>
<li><strong>Agreement in Writing:</strong> All tenancy agreements should be in writing and should confirm the obligations of all parties including and not limited to the bond, rent due dates etc.</li>
<li><strong>Bond:</strong> Once you pay the bond then the landlord is required to lodge your bond with the Department of Building and Housing within 23 working days of receipt. You should receive written notification of the lodgement of your bond within 5 weeks of the start date of your tenancy.</li>
</ul>
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		<title>Rugby World Cup Tenancies</title>
		<link>http://propertyblogs.co.nz/2010/07/13/rugby-world-cup-tenancies/</link>
		<comments>http://propertyblogs.co.nz/2010/07/13/rugby-world-cup-tenancies/#comments</comments>
		<pubDate>Tue, 13 Jul 2010 01:31:03 +0000</pubDate>
		<dc:creator>Simon Allen</dc:creator>
				<category><![CDATA[Tenants]]></category>
		<category><![CDATA[Rugby World Cup]]></category>
		<category><![CDATA[tenant]]></category>

		<guid isPermaLink="false">http://propertyblogs.co.nz/?p=830</guid>
		<description><![CDATA[There is much anticipation and debate for many Auckland property owners about renting out furnished properties during the Rugby World Cup 2011. ]]></description>
			<content:encoded><![CDATA[<p><a href="http://propertyblogs.co.nz/files/2010/07/cup.jpg"><img class="alignright size-full wp-image-832" src="http://propertyblogs.co.nz/files/2010/07/cup.jpg" alt="cup" width="150" height="115" /></a>There is much anticipation and debate for many Auckland property owners about renting out furnished properties during the Rugby World Cup 2011. Many landlords have stories about early rental enquiries for the event and the possibility of securing great rents. This article aims to identify some pros and cons of renting your properties during this event.</p>
<p>As professional property managers we often have property owners that contact us to enquire about either giving their tenants notice so properties are vacant just prior to the event, or alternatively renting out their family homes over this period. Many have been lured by the buzz of the World Cup fever and rumours of easy money and great returns. However, I believe that this potential market is over-inflated and many property owners will find themselves disappointed unless they face certain realities.</p>
<p>This RWC market will predominantly only benefit owners of furnished apartments and houses that are vacant at the time of the event. Those landlords who plan to give existing tenants notice to vacate so they can get higher rents for the period of the RWC, must think about the opportunity cost involved. They may secure double the normal return for 3-4 weeks of the tournament but then may also experience a week or two of vacancies prior to the RWC tenancy and the same afterwards before securing new long-term tenancies after the events. These vacancies may wipe out any potential profits and this is before you even think about potential damages to your property from a party who may be in the country for 3 weeks, never to return.</p>
<p>Any smart investor will ask − why terminate a long term tenancy to secure a better return for 3 weeks? With more tenants coming and going, there are greater risks of vacancies, damage, wear and tear and depreciation. There are also additional costs including marketing and the logistics of signing up tenants also to be taken into consideration.  Landlords may need to pay for power/water/gas as tenants only staying a week or two certainly wouldn’t want to set up their own utilities accounts. There is also much debate about whether the Residential Tenancies Act would even govern theses short-term tenancies. Section 5M of Residential Tenancies Act excludes tenancies “where the premises are let for the tenant’s holiday purposes”</p>
<p>In many instances it won’t necessarily matter what legislation governs the tenancies as the tenants are visitors and could be gone before you even notice any problems, let alone take action against them. Landlords need to look at the big picture. The majority of visitors attending the event will surely stay in short-term hotels/motels/hostels and serviced apartments. They will spend most of their time out and about watching rugby and exploring New Zealand. The majority will only require basic short-term accommodation and not large furnished houses. They want to be spending little time on cleaning/cooking so most will opt for serviced accommodation. Many visitors will want to follow teams around the country and not commit to 2 or 3 week tenancies in one location.</p>
<p>Although there are many negatives to consider, there will be many landlords that will make the most of opportunities to rent out properties short-term for the event. I expect that some visitors, mainly families, will try and utilise this private market rather than staying in serviced hotels/motels/hostels and apartments. The majority of this market will be made up of private homes (not rental properties). Some visitors will want a base for the event and after the event, for extended stays.</p>
<p>For those looking to take advantage of this market, think outside the square! If you want to compete with other property owners then think about offering a rental package for a week or two that includes some of the following, which will help differentiate your property from the thousands of other landlords looking to cash in.</p>
<ol>
<li>A pick-up service from the airport.</li>
<li>A bottle of NZ wine, a crayfish,  and/or a dozen oysters upon arrival</li>
<li>A car with the property</li>
<li>A cleaner once or twice a week</li>
<li>Complimentary tickets to a minor game at Eden Park</li>
</ol>
<p>The most important aspect is that property owners should know who is renting the properties. Deposits and Bonds should be taken and contracts completed stating maximum numbers of tenants, rules and regulations. You may only have one bite at the cherry so if it’s worth doing it’s worth doing well!</p>
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		<title>Abandoned Goods</title>
		<link>http://propertyblogs.co.nz/2010/06/21/abandoned-goods/</link>
		<comments>http://propertyblogs.co.nz/2010/06/21/abandoned-goods/#comments</comments>
		<pubDate>Sun, 20 Jun 2010 22:26:51 +0000</pubDate>
		<dc:creator>Aaron Clancy</dc:creator>
				<category><![CDATA[Tenants]]></category>
		<category><![CDATA[property management]]></category>
		<category><![CDATA[tenant issues]]></category>

		<guid isPermaLink="false">http://propertyblogs.co.nz/?p=790</guid>
		<description><![CDATA[Do you know what you are required to do if a tenant gets up and does a runner and leaves there belongings at the property?]]></description>
			<content:encoded><![CDATA[<p><a href="http://propertyblogs.co.nz/files/2010/06/rubbish.jpg"><img class="alignright size-thumbnail wp-image-793" src="http://propertyblogs.co.nz/files/2010/06/rubbish-150x150.jpg" alt="rubbish" width="150" height="150" /></a>Well – as much as you would like to throw this stuff out, it is amazing how a shonky old table can quickly become a prized family heirloom, or a ripped old pair of jeans can become a piece of designer clothing, which a returning tenant can decide to claim against you for.</p>
<p>Under section 62 of the Residential Tenancies Act only food and perishable goods may be discarded immediately by the landlord and all other items should be stored securely pending an application to the tenancy tribunal. The tribunal will then make an order either for the return of the goods to the tenant, or allow for the sale or disposal of the abandoned goods.</p>
<p>This is not ideal for the landlord as it costs time and money to go and store goods for a tenant that has left the property. Not only will you be responsible for looking after their household goods, you will also be responsible for cleaning the property and getting it ready to be tenanted again. This all adds up and ultimately will come out of your pocket until an order for claims against the tenant is processed by the Tenancy Tribunal.</p>
<p>The key message is that by getting a disposal order from the Tenancy Tribunal you are protected against any potential claim from an ex-tenant.</p>
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		<title>Marketing Your Rental – Best Bang for Bucks</title>
		<link>http://propertyblogs.co.nz/2010/06/03/marketing-your-rental-best-bang-for-bucks/</link>
		<comments>http://propertyblogs.co.nz/2010/06/03/marketing-your-rental-best-bang-for-bucks/#comments</comments>
		<pubDate>Wed, 02 Jun 2010 22:36:09 +0000</pubDate>
		<dc:creator>Simon Allen</dc:creator>
				<category><![CDATA[Tenants]]></category>
		<category><![CDATA[property management]]></category>
		<category><![CDATA[tenant]]></category>

		<guid isPermaLink="false">http://propertyblogs.co.nz/?p=768</guid>
		<description><![CDATA[The question that all landlords must think about is how best to attract tenants. New Zealand is predominantly a renting nation and competition is strong between landlords to secure the best possible tenants.]]></description>
			<content:encoded><![CDATA[<p><img class="alignright size-full wp-image-769" src="http://propertyblogs.co.nz/files/2010/06/rent.jpg" alt="rent" width="135" height="92" />The question that all landlords must think about is how best to attract tenants. New Zealand is predominantly a renting nation and competition is strong between landlords to secure the best possible tenants. Those landlords that use the appropriate mediums to market their properties and reach the widest audience are generally those that see higher rents, fewer vacancies, stable tenants and long term tenancies.</p>
<p>On any given day in any major city, there are hundreds of “For Let” advertisements chasing the elusive best tenant. In the main, the bulk of the ads are placed by private landlords (although this is changing), followed by licensed real estate property managers, and then non-licensed property managers. The amount of money spent on advertisements in the New Zealand Herald each month could be enough to <strong>feed a small third world country</strong>.</p>
<p>It seems that the first reaction of most private landlords and property managers when faced with a vacancy is to reach for the phone and place an advertisement in the paper. However there are alternative options to attract tenants which are more effective.</p>
<p>There are 8 broad “sources of tenants” that we find useful to monitor.</p>
<ol>
<li>Renewals−Existing tenants renewing fixed terms or moving into other properties we manage.</li>
<li>NZ Herald−Largest metropolitan newspaper in Auckland market.</li>
<li>Web Page−Allen Realty web page plus various other sites we use</li>
<li>Local papers−Suburban and other print media.</li>
<li>Corporate referrals−Organisations that refer tenants to us.</li>
<li>Signs−For Rent signs on vacant property.</li>
<li>Other referrals−Referrals from sources other than corporate.</li>
<li>Other−All other sources</li>
</ol>
<p>The following table summarizes three recent months of letting data, and from those we can make some interesting assumptions and conclusions. These show the % of properties rented for the month via each source.</p>
<p><img class="aligncenter size-full wp-image-770" src="http://propertyblogs.co.nz/files/2010/06/table.jpg" alt="table" width="440" height="155" /></p>
<p>What this table shows is that over a three month period an average of almost 40% of Allen Realty’s’ new tenants come from internal sources. Internal sources include our web page, <a href="http://www.allenrealty.co.nz/" target="_blank">www.allenrealty.co.nz</a>, existing tenant movements/referrals, office listings, for rent signs and our prospective tenant database.</p>
<p>Other external New Zealand property websites are also useful sources at about 50% of all new tenancies. But most interesting to note is that the New Zealand Herald and local newspapers are NOT a significant source of attracting new tenants (this is probably one reason media companies are purchasing many websites). In this day and age where tenants have greater resources than the past, the majority of prospective tenants are not using the Herald and other papers to source property. Websites (whether an agents or external) provide prospective tenants with a platform to view properties, including many photos, and to also make comparisons between properties. From their home or office they use the web to investigate the area, its amenities and infrastructure. It is also interesting to note approximately a quarter of tenants secured actually use the web to apply to rent the property. So not only is it beneficial to advertise on-line but also to have a platform whereby tenants can apply on-line. It is not only about reaching your audience, but making it easy for them.</p>
<p>Clearly internet advertising must be a priority and it is essential to list properties on multiple sites. Although the cost of one advertisement on line is increasing (trademe is currently very high at $99 per listing), many property managers cover the cost of this charge in the management fees which average $22.50 per week plus GST. However, check the fine print as some property managers (usually unlicensed) on-charge this cost. Realestate.co.nz is also a good site, and like trademe, all Allen’s’ properties are listed on this site automatically.</p>
<p>Another interesting point is that our tenant vacancy rate stays reasonably stable year in and year out. Regardless of seasonality, tenant friendly rental markets, landlord friendly rental markets, the number of properties available in the market, government policy, or any other external factors, our vacancy percentage rate remains stable. This is only because we source a high proportion of new tenants from mediums other than the “open market” where most landlords are competing. If we were only advertising using standard mediums we would expect a higher vacancy rate as the market experiences its seasonal lows. However, like other professional property managers Allen Realty has an advantage in attracting new tenants, as not only do we cover many bases but enquiries come to us.</p>
<p>All landlords, large or small should be recording the source of the new tenant, so they can decide where to allocate their resources based on facts. If a private landlord or small rental agency relies solely on newspaper advertising, the result could be little success in attracting tenants, and long vacancy periods. Think outside the square and maximise your exposure! Those landlords using multiple mediums to advertise for tenants will generally be the investors that get more <strong>bang for their buck!</strong></p>
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		<title>Landlords Preparation for Winter! The 3 Key Elements</title>
		<link>http://propertyblogs.co.nz/2010/05/11/landlords-preparation-for-winter-the-3-key-elements/</link>
		<comments>http://propertyblogs.co.nz/2010/05/11/landlords-preparation-for-winter-the-3-key-elements/#comments</comments>
		<pubDate>Mon, 10 May 2010 22:42:01 +0000</pubDate>
		<dc:creator>Simon Allen</dc:creator>
				<category><![CDATA[Featured]]></category>
		<category><![CDATA[Tenants]]></category>
		<category><![CDATA[tenant]]></category>

		<guid isPermaLink="false">http://propertyblogs.co.nz/?p=685</guid>
		<description><![CDATA[Part of being a landlord is preparing in advance for issues such as planned maintenance and vacancies.]]></description>
			<content:encoded><![CDATA[<p><a href="http://propertyblogs.co.nz/files/2010/05/snow_day_house.jpg"><img class="alignright size-thumbnail wp-image-704" src="http://propertyblogs.co.nz/files/2010/05/snow_day_house-150x150.jpg" alt="snow_day_house" width="150" height="150" /></a>Part of being a landlord is preparing in advance for issues such as planned maintenance and vacancies. In case your tenants vacate, landlords should always be aware of what they need to do to ensure properties are in the best condition, in order to rent again, with minimal vacancies to new quality tenants. It goes without saying that the more proactive the landlord, and better presented the property, generally the better quality the new tenant will be.</p>
<p>Often the winter period is the quieter time of the year for the rental property market (as less people are moving at this time) so just prior to winter all landlords should be prepared in advance to take steps to ensure their property is ready to market to new tenants. Winter is when competition is the highest for tenants so there are specific issues to consider when for planning for this period. Property owners need to be on their game to ensure that their properties stand out from the crowd and will appeal to prospective tenants.</p>
<p>Generally your property manager sends you periodic inspection reports on the condition of the property and any issues to be addressed either now or at some stage down the line. The reason for this is that landlords hate surprises and your property manager’s communication gives you the time and resources to plan for any maintenance and improvements in advance. As a property owner you should begin planning for these issues prior to tenants giving notice and properties becoming vacant. This means taking steps to collect quotes, organize work where necessary and budget for the work in advance. Landlords who wait until properties become vacant are those likely to experience far greater vacancies between tenancies as the process grinds to a halt as they wait for quotes and tradesman.</p>
<p>All properties generally rent quicker in the summer months. This is due to many reasons including a higher demand for property in general. There is also the fact that almost all properties look better in the summer months when the sun is shining, the smell of the cut green grass is appealing and most properties show little sign of moisture or dampness. Winter months require addressing specific issues which I have noted below that may not matter so much in the summer. These important issues should be addressed when tenants give notice (not when they have vacated, but in the last weeks of their tenancy). Remember that all properties are generally marketed while tenants are still in occupation so often you can’t afford to wait until the property is vacant. It is also important to understand that tenants are only required to present a property to a “reasonable standard” so they will never address exterior issues 100% and owners need to be prepared to address the rest.</p>
<p><strong>Trees, Gardens &amp; Hedges:</strong> As all prospective tenants usually do a drive by from the outside of a property prior to viewing the inside so these issues require special attention. All trees/hedges should be trimmed back as much as possible which will improve sunlight on the property and though windows (less dampness) and stop leaves gathering around the yard. Gardens should be given a mini spring clean just prior to tenants vacating. Usually outgoing tenants will only maintain a garden to 75% so owners may need to complete this to maximize presentation. Lawns &amp; edges should be attended to. By weed matting all gardens and clearing weeds not only do gardens look tidy but combined with the above issues, the entire property will appear to be LOW MAINTENANCE which is what all tenants look for.</p>
<p><strong>Insulation:</strong> Winter brings this aspect of properties to the front of prospective tenant’s minds. Often some tenants will not rent in summer as they want to see a property in the winter first. These days insulation requirements are a lot stricter so many older properties may have poor or sub standard insulation. When prospective tenants are inspecting properties they will be looking at walls, ceilings, nets, curtains and windows for evidence of mould and moisture. The increase in recent media reports about poor insulation and education on heath risks, have driven tenants concerns. It goes without saying that generally the better insulated properties, will be the ones that rent the first in winter. Chattels such as heat pumps, HRV ventilation units and bathroom fans, will also assist in reducing moisture, and making properties more appealing. Subsidies are now available from the government for landlords insulating rental properties, and if you have a current tenant who is a beneficiary then extra subsidies apply. Better insulation and less moisture is also an investment in your chattels, such as curtains and nets which will last longer in a better insulated property. If surfaces show signs of moisture then they should be painted.</p>
<p><strong>Lighting &amp; Security:</strong> Often tenants who are viewing properties after hours in winter, will visit a property in the dark. This is when lighting and security becomes important. All properties should have security sensor lights/bulbs installed which pop on as soon as the tenants walk down the driveway or path. This gives tenants a sense of personal safety and security as soon as they step on to your property. Not only will they see what they have come to look at, but they know that if they lived there, they could feel secure. Alarms will also provide the tenants with additional piece of mind and help you compete with other properties.</p>
<p>Next time you receive an inspection report from your property manager identifying potential issues at your property, it may be worth getting the ball rolling ASAP. If you manage your own property then you should be inspecting quarterly or six monthly to assess the presentation and any issues yourselves. Start organizing quotes so you can budget for the work. Make a list of all issues in advance so if tenants give notice you can begin without delay.  Any professional property manager will tell you that their role is a combination of systematic processes we follow each day or week to ensure that the property or portfolio performs well. We are not only managing as of today but planning for the future. In this day and age it is not possible to be re-active and only get involved when a tenant moves out or doesn’t pay the rent. The performance of the property is a direct result of how proactive the landlord is so you need to be prepared and plan for the future. A landlord with a plan is definitely the man/woman!</p>
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		<title>Rent Arrears Procedures – A  Guide for Landlords</title>
		<link>http://propertyblogs.co.nz/2010/05/10/rent-arrears-procedures-a-guide-for-landlords/</link>
		<comments>http://propertyblogs.co.nz/2010/05/10/rent-arrears-procedures-a-guide-for-landlords/#comments</comments>
		<pubDate>Sun, 09 May 2010 23:31:18 +0000</pubDate>
		<dc:creator>Simon Allen</dc:creator>
				<category><![CDATA[Tenants]]></category>
		<category><![CDATA[Rent Arrears]]></category>
		<category><![CDATA[tenant]]></category>

		<guid isPermaLink="false">http://propertyblogs.co.nz/?p=692</guid>
		<description><![CDATA[Part of property ownership is the effective control of rent arrears. Many landlords take a soft approach to rent arrears and often emotion or a lack of knowledge of what to do results in unnecessary losses. We all know that unless arrears are actioned promptly that bonds will never cover all costs so the proactive [...]]]></description>
			<content:encoded><![CDATA[<p><img class="alignright size-full wp-image-694" src="http://propertyblogs.co.nz/files/2010/05/rent.jpg" alt="rent" width="127" height="84" />Part of property ownership is the effective control of rent arrears. Many landlords take a soft approach to rent arrears and often emotion or a lack of knowledge of what to do results in unnecessary losses. We all know that unless arrears are actioned promptly that bonds will never cover all costs so the proactive control of rent arrears is essential for all owners. This article aims to provide landlords with a systematic process to complete when faced with rent arrears. This process has been developed over 20 years of professional property management and is essential to limit losses and reduce instances of arrears.</p>
<p>In the old days tenants were given the benefit of the doubt and property managers were a little less strict. If a promise was made to remedy in a day or two or a double payment was made next week our Landlords accepted this and property managers recorded the arrangements. This was a product of a time when Landlords and property managers let emotion in to the equation and gave tenants a bit more breathing space. However now property investment is main stream and every cent counts for many investors! The following process is designed to protect the Landlord from the worst case scenario and steps are taken just in case tenants are lying or have no intention to pay rents (this happens more than you would think).</p>
<p><strong>Step 1 &#8211; Day 1</strong>: A phone call to tenants to advise on the missed payment and that a written notice will be issued immediately (this notice is gentle rent arrears letter but includes all required info for a 10 day notice eg property address, tenants name, date, arrears amount and clause giving 10 working days to remedy the breach in the agreement). If tenants confirm that they will pay the rent in a few days or can they pay double next week then property owners must advise tenants &#8220;it is unacceptable to not pay the rent or pay it late&#8221; and that action may be taken against them to terminate the tenancy if they don’t remedy the breach ASAP.</p>
<p><strong>Step 2 &#8211; Day 3</strong>: Phone call or text message</p>
<p><strong>Step 3 &#8211; Day 5:</strong> A 2nd letter more serious advising that within 24 hours an application to the Tenancy Tribunal may be made for termination of the tenancy.</p>
<p><strong>Step 4 &#8211; Day 7 or 8:</strong> This is the day that the rent will now fall two weeks behind if rents not paid. Apply to the Tenancy Tribunal, ph call/text &amp; written notice to tenant that an application has been made.</p>
<p>Note: The best policy is that applications to the Tribunal for the recovery of rent arrears should be made on or before the tenant gets two weeks in arrears eg on or before day 7 or 8. DO NOT wait for 10 day notices to expire as bonds will NEVER cover rents by the time you make an application or get to the Tenancy Tribunal (eg. You are planning for worst case scenario). If you make an application before the 10 day notice expires then Tenancy Services will schedule your mediation for the earliest available spot after the 10 days has expired. If a tenant remedies the missed payment you can always withdraw an application. The reason you don’t make an application on day 4, 5 or 6 is that most breaches are remedied within this timeframe and even if you did make an application to the Tribunal on these days you would not get a hearing date any earlier than if you made an application later on day 7 or 8 (as the mediation will still be scheduled after the expiry of a 10 working day letter). It is also important to understand that tenants are not sent letters or called every day as this can be seen as harassment and is unnecessary as it may only antagonise tenants.</p>
<p>If notices go unanswered then you will need to follow up the notice with an application to the Tenancy Tribunal. When making an application to the Tribunal a landlord should always plan for worse case scenario. Don’t just ask for the recovery of rent arrears and assume that tenants will remedy once you have been to court. In your application you need to ask for the ‘termination of the tenancy, payment of rent arrears, and bond refund’. If mediation fails and you find your self in the Tribunal then they only have the power to award you what you have asked for in the original written application.</p>
<p>If you experience arrears problems on an ongoing basis is also worth considering a three strikes and you’re out policy. Although most landlords won’t rent to tenants unless references are obtained, and tribunal database and credit checks completed, sometimes tenants who pass these checks still have arrears problems. If you have to take tenants to mediation or the Tribunal it is usually worth mediating once or twice. However, if a tenant is taken to the tribunal a third time then we recommend not negotiating and termination is requested with the argument that there is clearly a history of ongoing rent problems. Especially since the owner is not only fitting the bill for each application fee but also foregoing the many hours needed to complete a Tribunal hearing &amp; mediation.</p>
<p>In a world where you may wait weeks to get in to the Tribunal and bonds hardly ever cover everything it is important for property managers and Landlords to take action ASAP in order to limit any potential losses. Also, if Landlords are push over’s in the first instance bad tenants will repeat the breaches knowing they can get away with it so a hard line policy is essential. If you take the above action each time then you reduce the likelihood of repeat offending as tenants know they cant get away with it.</p>
<p>All of the above said, hard line rent arrears policies are essential but I’m sure that you will all agree even more important is a strict TENANT SELECTION PROCESS which will reduce the likelihood of problems from day 1.</p>
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		<title>Tenant Damage or Wear &amp; Depreciation &#8211; How do you Know?</title>
		<link>http://propertyblogs.co.nz/2010/05/06/tenant-damage-or-wear-teardepreciation-how-do-you-know/</link>
		<comments>http://propertyblogs.co.nz/2010/05/06/tenant-damage-or-wear-teardepreciation-how-do-you-know/#comments</comments>
		<pubDate>Thu, 06 May 2010 00:09:40 +0000</pubDate>
		<dc:creator>Simon Allen</dc:creator>
				<category><![CDATA[Tenants]]></category>
		<category><![CDATA[tenant]]></category>

		<guid isPermaLink="false">http://propertyblogs.co.nz/?p=674</guid>
		<description><![CDATA[Fair wear and &#38; tear is the gradual deterioration of aspects of a property which has resulted NATURALLY or from AGE. Allen Realty property managers inspect all properties periodically and then at the expiry of a tenancy to identify fair wear and tear and/or damage.]]></description>
			<content:encoded><![CDATA[<p><img class="alignright size-full wp-image-679" src="http://propertyblogs.co.nz/files/2010/05/house.jpg" alt="house" width="121" height="91" />Fair wear and &amp; tear is the gradual deterioration of aspects of a property which has resulted <strong>NATURALLY</strong> or from <strong>AGE</strong>. Allen Realty property managers inspect all properties periodically and then at the expiry of a tenancy to identify fair wear and tear and/or damage. Every specific issue is investigated on its individual merits and there is no ‘across the board’ policy. Most issues are easy to identify which category the damage falls in to. However, if your property manager is not confident on the exact cause we will make a recommendation to the owner and then take instructions as to what the property owners decides is an appropriate amount for the tenant to be charged <strong>PRIOR</strong> to all bonds refunded.</p>
<p>Stains on carpet/lino/nets/curtains and damages to walls are <strong>NOT</strong> generally considered wear and tear and are usually tenant damage. Cracks in paintwork can sometimes be caused by tenants but are usually caused by movement in walls/ceilings which can occur naturally in all properties. Cracked tiles require more investigation as this could be caused by tenants or an uneven surface or poor grouting and installation. When carpet is beginning to bubble slightly, show loose threads or discolour the age of the carpet is taken in to consideration and often if it exceeds a certain age then wear and tear can be diagnosed as a fault or contributor.</p>
<p>Some issues can be identified as being caused by both wear and tear and tenant damage. For example if damage is started as a result of age but then accelerated by the tenant. In this case the tenant may be responsible for a contribution towards the cost of remedying an issue. Other issues like faint oil stains on garage floors require more investigation as some level of discoloration may be expected over time. The most important issue is what steps the tenant has taken over the life of the tenancy and at the expiry of the tenancy to limit or reduce the problem.</p>
<p>If a maintenance problem has occurred and the tenant has not communicated this to a landlord then the tenant may also be held responsible for the acceleration of the damage. Issues such as mold and moisture can also be a difficult one. If a landlord identifies mold on walls, ceilings, nets or curtains that has caused discolouration or damage to the surfaces then this is usually <strong>NOT</strong> caused by the tenant even though it may have been accelerated by the tenant not cleaning the surfaces regularly. This problem should not be left until the termination of a tenancy as a tenant needs to be educated throughout the life of the tenancy on how to reduce and combat this problem.</p>
<p>If a landlord fails to effectively do this then they too have contributed towards the damage. Tenants need to be educated on opening windows and cleaning surfaces regularly to avoid this problem and property owners need to provide adequate insulation and ventilation. If they fail to do this then it is difficult if not impossible to chase tenants for this damage (tenants would be responsible for cleaning the surfaces but not necessarily the damage if mould has eaten in to surfaces).</p>
<p>Cleaning issues require a similar approach. It goes without saying that if a tenant fails to keep a property clean and tidy throughout the life of a tenancy then the property will degrade a lot quicker. This is NOT fair wear and tear and landlords should not wait until the end of a tenancy to address this issue. Regular inspections and tenant education is again the key to avoiding this issue. The Residential Tenancies Act is relatively vague on condition and requires properties to be reasonably clean and tidy. For this reason all Allen Realty tenants are required to sign a ‘Tenant Cleanliness Statement’, attached to the agreement which outlines specific obligations in a bid to educate tenants so all parties are on the same page with regards to presentation.</p>
<p>During the regular inspections tenants may need further direction (the most common is the use of fly spray and common requests to wipe ceilings) if properties are not up to standard and if problems do persist then we will take steps to terminate tenancies rather then let potential damage occur. If damage identified at the end of a tenancy is due to long term neglect then tenants should be charged but like moisture problems landlords need to take some responsibility for the lack of proactive management.</p>
<p>It is worth noting that a property manager and most property owners will ALLWAYS consider the history of the tenancy when judging what is fair wear and tear/tenant damage. For example, if a tenant has been at a property for years, has paid all rents/water bills in advance, has left the property absolutely immaculate inside and out but a small scratch is identified in the wall at the bottom of the stairs (common areas for damage when moving in or out of a property) the property manager may recommend to the owner that the tenant is not charged. However, if the owner requests we charge the tenant then we will oblige if the cost is reasonable.</p>
<p>Landlords need to be aware of common Tenancy Tribunal practises with regards to wear and tear and depreciation. It is common for adjudicators to enquire about the age and value of chattels and paintwork and proof of remedial work when considering claims for damages vs. wear and tear. Accountants often depreciate chattels using a percentage of the value and age and the Tenancy Tribunal does the same. They may not order the tenant to reimburse the complete cost of fixing damage to as aspect of the property that is years old and not brand new. Landlords must appear to be reasonable with their claims. If a landlord applies with an unreasonable claim then they may lose the benefit of the doubt. If a landlord is unreasonable and tenant proves that the rest of the tenancy has run smoothly then a tenant may receive the benefit of the doubt instead. Be reasonable in your negotiations and do not try to profit. Also bear in mind that if you rent a property to a family of 8 and at the expiry of a tenancy the Tribunal may rule that the landlord must expect slightly more wear and tear then if they had rented to a party of 4. When negotiating all issues need to be taken in to consideration.</p>
<p>When preparing for Tribunal hearings you will require quotes/invoices/invoices/inspection reports and pictures. If you turn up with photos and quotes then you may not receive the cost of the work unless it has actually been done. The tenancy Tribunal is not in the habit of awarding to the landlord when work has not even been completed to remedy the issue. So best practise is to identify issues, identify the course, request a quote to repair, and then negotiate with the tenant in order to mediate an appropriate settlement. You may even offer sweeteners if the tenant reimburses you in the next 48 hours. As you are dealing with people and their emotions the successful outcome always depends on the process being completed the right way.</p>
<p>An experienced property manager can usually identify the difference between damage and wear and tear and negotiate with tenants successfully with no emotion. This can be a difficult and time consuming process for private owners who are busy and more emotionally attached. This is one of the benefits of having a property manager and effective communication between you and your manager is the key to the successful outcome. At the expiry of each tenancy your property manager should report on any damage and the suggestions for reimbursement/compensation so there are no surprises down the line for the property owner.</p>
<p>Allen Realty Ltd offers a competitively priced property management and letting service that will take the hassle away from property investors and improves the performance of your property or portfolio. Our comprehensive service is customised to suit individual client’s requirements. For more information on our services including landlords rights and obligations visit <a href="http://www.allenrealty.co.nz/" target="_blank">www.allenrealty.co.nz</a>.</p>
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		<title>Tourists Can Be Pesky Tenants</title>
		<link>http://propertyblogs.co.nz/2009/12/14/tourists-can-be-pesky-tenants/</link>
		<comments>http://propertyblogs.co.nz/2009/12/14/tourists-can-be-pesky-tenants/#comments</comments>
		<pubDate>Sun, 13 Dec 2009 22:39:27 +0000</pubDate>
		<dc:creator>Glenn Morris</dc:creator>
				<category><![CDATA[Tenants]]></category>
		<category><![CDATA[property management]]></category>
		<category><![CDATA[tenant]]></category>

		<guid isPermaLink="false">http://propertyblogs.co.nz/?p=317</guid>
		<description><![CDATA[At this time of the year we often get young couples from the Northern Hemisphere coming to town for our summer. I generally find they are great tenants who pay well and put up with some primitive flats from time to time.]]></description>
			<content:encoded><![CDATA[<p><a href="http://propertyblogs.co.nz/files/2009/12/rubbish.jpg"><img class="alignright size-thumbnail wp-image-321" src="http://propertyblogs.co.nz/files/2009/12/rubbish-117x150.jpg" alt="rubbish" width="117" height="150" /></a>At this time of the year we often get young couples from the Northern Hemisphere coming to town for our summer. I generally find they are great tenants who pay well and put up with some primitive flats from time to time. I often supply them with a few basic bits of furniture like beds, couches, and white ware.</p>
<p>This year I have some Argentineans, Canadians, and Dutch.</p>
<p>The Dutch couple seemed nice. They were not sure how long they wanted to stay. I have been occasionally caught with tenants only staying for a few weeks on a periodic tenancy so I signed them up for a four month fixed period. All was fine for one week then the calls started. We want out of here they say. The stove does not work, the fridge keeps stopping and there is a bad smell. Well I soon fixed the stove by turning it off automatic, swopped the fridge, and could not smell anything apart from the pollen on the trees outside. We want our entire bond back in cash they demanded.</p>
<p>If you do not give it back we will go to the police and write to the newspaper saying you let stinky flats.  Well this statement was like a red rag to a bull to me.</p>
<p>I pointed out that we have different laws in NZ and what ever goes in their country counts for nothing here. I said to them they have signed up for four months and that I would return at the end of the lease to pick up the keys.</p>
<p>Next day they rang and were far more conciliatory. Can we please give notice they say. I met with them again. It turned out they had been off to the police, and the city council environment department. The health inspector could not smell anything but they said their noses were more sensitive than our so they could not stay in the place any longer. It was affecting their health. What a con job I thought. They were just trying to avoid paying a premium at backpackers.</p>
<p>Then they say when we go can you give us a cheque for the bond. You should have seen their faces when I said the Government now has the bond money and that they will put the money into their bank account when work recommences. I can not make the Government work over the Christmas break. I can see we are going to have another childish squabble in three weeks when they want to leave.</p>
<p>I find it interesting how people want to use the services of civil servants like the police and sanitation inspectors when it suits them to win their argument but then flip flop and want to avoid following any laws at all if it is in their interest to do so.</p>
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		<title>Tenant on home detention does not pay rent</title>
		<link>http://propertyblogs.co.nz/2009/11/13/tenant-on-home-detention-does-not-pay-rent/</link>
		<comments>http://propertyblogs.co.nz/2009/11/13/tenant-on-home-detention-does-not-pay-rent/#comments</comments>
		<pubDate>Thu, 12 Nov 2009 23:52:13 +0000</pubDate>
		<dc:creator>Glenn Morris</dc:creator>
				<category><![CDATA[Tenants]]></category>
		<category><![CDATA[property management]]></category>
		<category><![CDATA[tenant]]></category>

		<guid isPermaLink="false">http://propertyblogs.co.nz/?p=206</guid>
		<description><![CDATA[I have recently had two different tenancies where the tenant was on home detention and got into rent arrears.]]></description>
			<content:encoded><![CDATA[<div id="attachment_269" class="wp-caption alignright" style="width: 160px"><a href="http://www.flickr.com/photos/rightee/4311106"><img class="size-thumbnail wp-image-269" src="http://propertyblogs.co.nz/files/2009/11/big_gate-150x150.jpg" alt="big_gate" width="150" height="150" /></a><p class="wp-caption-text">image by rightee</p></div>
<p>I have recently had two different tenancies where the tenant was on home detention and got into rent arrears.</p>
<p>First one had been there a for a number of months. When he appeared in court he missed part of a weeks rent. Thinking this was the start of slide downhill I issued a 10 day letter but he managed to limp along paying every week but never fully catching up. Then he missed again so I lodged the tribunal application. His probation officer rang trying to soft talk me into doing nothing. But he will need to go to jail the PO says.</p>
<p>Well isnt that a shame I say. Just get me the rent money I say and he can stay for as long as he likes. No rent money so the tenancy ended as I wished and the not particularly large debt was cleared with the bond. If I had left the issue no doubt the rent arrears would have continued to climb. The risk in this case was if he got jail the chances of being paid any debt was nil.</p>
<p>Then another one pops up the very next week. This one had been newspaper front page news. Paua poachers. Mr Tenant gets jail and Mrs Tenant get HD. She has two young children to look after. The probation officer calls again to keep me fully informed. Not that this means we get any rent. Mr tenant&#8217;s benefit was stopped when jail started and Mrs tenant is no eligible for a benefit because she is here on an expired visitors permit.</p>
<p>These Paua poachers had been good tenants for the last three years.</p>
<p>So the claim is she is heading off to WINZ to try and get some money to live on. The nice probation officer says Mrs tenant is very worried about not paying the rent. Can I please no worry about the rent the PO says.</p>
<p>Well guess what I say.</p>
<p>Yes that is right. I said I am not operating a branch of the Department of Corrections. If the Government wants me to provide accommodation for its offenders it needs to pay me.</p>
<p>So ho hum here we go again off to the tribunal to try and solve the issue.</p>
<p>Perhaps we could have some comments from PTers on what should be done and who should suffer.</p>
<p>Who is the bad person in the story?</p>
<ol>
<li>Are the children to blame. Should they have a house to live in and food to eat.</li>
<li>One of them did take part in the Paua gathering and processing.</li>
<li>Should society through WINZ pay Mrs tenant some money to permit her to eat, and keep a roof over her head.</li>
<li>Should the courts just put Mrs tenant onto the first plane back to any country the plane is headed to and send her kids who were born here with her.</li>
<li>Should the landlord continue to bear the cost of housing the tenants for the next 9 months until Mr Tenant gets out of jail and returns to his benefit.</li>
<li>Should the court ask landlords permission before they hand down HD sentences.</li>
<li>Should we charge more for those tenants on HD to reflect the higher wear and tear on the property and reflect the lower cost to society by not needing to build more jails.</li>
</ol>
<p>What are your thoughts?</p>
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		<title>Sometimes I feel bad about seeking an eviction</title>
		<link>http://propertyblogs.co.nz/2009/11/08/sometimes-i-feel-bad-about-seeking-an-eviction/</link>
		<comments>http://propertyblogs.co.nz/2009/11/08/sometimes-i-feel-bad-about-seeking-an-eviction/#comments</comments>
		<pubDate>Sat, 07 Nov 2009 23:19:34 +0000</pubDate>
		<dc:creator>Glenn Morris</dc:creator>
				<category><![CDATA[Tenants]]></category>
		<category><![CDATA[property management]]></category>
		<category><![CDATA[tenant]]></category>

		<guid isPermaLink="false">http://propertyblogs.co.nz/?p=199</guid>
		<description><![CDATA[Today the bailiff rang and said be at your house in 10 minutes for the eviction. Goodness that was fast I said. I only lodged the application on two days ago. I had told the court staff that the nice tenant had a six year old and a new born baby. ]]></description>
			<content:encoded><![CDATA[<p><a href="http://propertyblogs.co.nz/files/2009/11/lock_out.jpg"><img src="http://propertyblogs.co.nz/files/2009/11/lock_out-150x150.jpg" alt="lock_out" width="150" height="150" class="alignright size-thumbnail wp-image-200" /></a>Today the bailiff rang and said be at your house in 10 minutes for the eviction.</p>
<p>Goodness that was fast I said. I only lodged the application on two days ago. I had told the court staff that the nice tenant had a six year old and a new born baby. I liked the tenant and gave the court staff this information to ensure they gave her a little bit of compassion and consideration.  Normally the court give people at least two days notice to get out. Sometimes when there are very young children involved they give them a little bit more time. Because I had not heard from the bailiff that they had served the notice I just assumed that they were giving her until Monday to get out. </p>
<p>“I did not let you know in advance” he said. “We have been on industrial action, but anyway come quickly.”</p>
<p>This solo parent tenant had only been in the property for 10 weeks. She came with good references and good credit on Veda. Also her mother had once been a good tenant of mine. She presented as being a thoroughly decent person. Her story about WINZ not helping with bond and rent seemed reasonable. She was supposed to have recently stopped working at a high paid job. She paid the full bond and rent with her own cash of $1500.</p>
<p>Because I believed the story I was a little bit slower than normal issuing the 10 day letter when the rent was missed. I however quickly followed up with a tribunal application.</p>
<p>She turned up at mediation baby in arms and made sincere promises to pay $50 extra each week off the debt. The debt at that time was still less than the bond.</p>
<p>Last week she paid the due amount right at the end of the time she was due to pay or be evicted. Conditional termination orders are normally worded to give the tenant three working days after the rent is due or be instantly evicted. Having a long weekend in the middle meant that she had six days to pay.  So last week I received $365 but not that weeks rent. I felt a little sad about asking for the termination bearing in mind her nice children. I was expecting a tearful confrontation. Bad greedy landlord throwing defenceless mother with baby clinging to her breast flashed through my mind.</p>
<p>So I got into the house with the bailiff at 2pm this afternoon. She had already gone with the house empty. In the corner of the lounge was a large flat screen liquid crystal TV screen with serious damage to its screen. A relatively small amount of rubbish in bags was left for me to dispose of. At the end of the hall a hole had been made and a rough incompetent attempt had been made to repair it.</p>
<p>On the lounge ceiling was a line of blood spots. So what had been going on?</p>
<p>I talked to the neighbours. The domestic violence had been terrible they said. The man had been throwing things off the high deck. Loud shouting and other sounds had been common. The poor little six year old boy would appear at the window looking terrified. </p>
<p>So tomorrow it is clean up day. Take the rubbish to the tip, mow the lawns, fix the damage, and show a prospective tenant through the house. Then it will be onto the next property and its problems to be sorted.</p>
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