Investing in residential property in New Zealand can be a big winner and there’s less to worry about than you might believe especially when you focus on the right requirements to firstly get the property and then how to manage it so it’s adding value i.e. equity and cashflow as a rental property.
Tag Archives | property management
Donald Trump is sworn in as President of the United States this week and the world as we know it will be a different place. Borrowing interest rates are rising and NZ banks are having to borrow more overseas to fund existing lending commitments according to this news item.
The clamp down on investor borrowing has landlords diverting their attention from purchases to seeking better returns from their existing property portfolios. Trade Me Rental Price Index confirms recent increases in weekly rent; particularly in Wellington, which is up 7.7 percent for the year to October 2016.
Property investors are buying fewer properties therefore there is less new rental stock in the market. While this will be pleasing the orchestrators of the recent LVR rule changes competition among property managers is now much tighter.
Demand is up for rental properties in most areas except Canterbury where the median rent has fallen over the past twelve months by two percent. Increased supply of property in Christchurch post-rebuild has meant less demand for rental accomodation and the median weekly rent is now back to where it was three years ago according to Trade Me Rent Price Index.
A discussion on PropertyTalk on whether Landlords should own just a couple of rentals each has created some lively debate over the past few days. Property investment is deemed one of the causes of the Auckland housing crisis and last year the bright line test rule, and 70% LVR on Auckland rental properties came into effect to target investor activity.
Landlords may soon be required to test for Meth use in their rental properties in-between tenancies as part of the new Health and Safety at Work Act 2015. The reported rise in P-contaminated houses is somewhat alarming insofar as the clean up costs are in the tens of thousands, plus residing in a meth contaminated environment can have negative health implications.
Referrals speed up the property manager selection process for landlords and it’s why asking for referrals is a popular activity on PropertyTalk.
However what do you do when referrals are thin on the ground and you need to engage a property manager immediately? Thankfully the answer is online and Landlords can now ask prospective property managers a list of pre-qualifying questions.
More properties are rented now than ever before and there is demand for affordable high quality professional property management services. In the early days of property investment investors naturally managed their own rental properties and they pretty much did so without much external influence.
Property investors are moving away from self styled property management.
While property owner-managed rental properties are still the majority, the tide has turned so to speak and engaging Property Management companies is now the norm in many areas around the country particularly in the main city centres.
Self property management is a doodle when everything goes to plan. The tenants pay their rent, respect your property and let you know when something needs replacing or maintained. Ahh the sound of a happy tenant – landlord relationship!
Offering incentives in order to retain a good tenant is simply smart business — it’s significantly cheaper to maintain a current customer by giving them a small gift than it is to market and find a new tenant. But how exactly to retain tenants (or, more accurately since we’re clearly talking about incentives here, what comprises an ‘effective’ incentive) is a question with a lot of potential answers.