Why do I need Professional Property Managers?
Well, not everyone does need a professional property manager. The key is whether you have the time and whether you are looking to add value, someone to advise and to gather greater returns. Compliance with the new regulations is a big task and requires a lot of knowledge and expertise. If you are looking for a Property Manager to do this, Collective First National should be top of your list. Additionally, if an owner is out of the country for more than 21 days, the Residential Tenancies Act states they must appoint an agent while away.
What would it cost to have The Collective First National manage my property?
The management fee is charged on the rents collected on your property. This fee is 8.5% plus GST. A new tenancy fee of $300 +GST (plus $40 if trademe advertising is required) for managed properties is charged if we find you a tenant. There are no other charges, which other agencies charge i.e. maintenance on your behalf, postage fees, inspection fees, attendance at tribunal hearings etc.
How can Collective First National ensure that my property is not let to undesirable tenants?
We are professionals. It is in our best interest to get the best fit for you and the tenant. We will spend time working out your preferred profile of tenant. We use a system that gives us access to full background checks, credit checks and reference checks.
How does advertising for a tenant work? Who pays for that?
There is no charge for advertising on our website and realestate.co.nz or in the local papers. A fee of $40 is charged for trademe advertising. Images and information relating to your property are included on the websites, social media etc, which potential tenants can view daily and sign up for our property email alerts. Additionally, we advertise in local suburban papers.
How does a potential tenant view a property they are interested in?
They can either phone or email us for viewing details.
What does The Collective First National do if a tenant misses their rent payments?
Our Property Managers check arrears reports daily. If a tenant misses a payment, they know and start the process as stated in our arrears policy. Tenants will receive a text message, email or call with a friendly reminder. For periodic tenancies, we send 14 day notices, but we also will start the 3 strikes approach, 3 notices within 90 days when a tenant is 5 working days in arrears.
Day 2-3. If we have not heard back from the tenant, then a reminder is sent via text message, email and phone call. Every method of communication is used to ensure that we have exhausted every means possible to contact the tenant.
Day 4-5. A 14 day notice is issued usually via email or by post.
Day 6. If the situation has not been resolved, an application to the tenancy tribunal will be lodged under Section 56 of the Residential Tenancies Act, or if 3 notices have been given for periodic tenancies, an application will be made to end the tenancy.
When the 14-day notice expires, if the situation has not been resolved then the application will stay lodged and Tenancy Services will schedule either a mediation or hearing date.
It may take up to six weeks for the application to be processed through the Tenancy Tribunal. At this stage, the Tribunal will offer assistance in a mediation process, where an agreement may be reached with the tenant (i.e. a payment plan or a set period of time where the tenant will resolve the arrears). If no agreement can be reached, a court order is issued for the tenant to vacate and any outstanding monies owed.
How much does a tenant pay to move into the property?
Two weeks rent in advance and four weeks rent for bond which is lodged with MBIE.
Does the tenant need to pay GST on rent?
No, GST is not payable.
Does the tenant need insurance?
It is in the tenants' best interest to hold a home and contents policy to cover their goods in the property. The Landlords insurance does not cover their possessions.
How often can the rent be increased?
Under the Residential Tenancies Act rent cannot be increased more than once every 12 months and the Landlord must give the tenant 60 days written notice of this increase.
What does a tenant do if something needs repairing in the property?
Contact their Property Manager or the office by telephone or email to advise of the problem. A contractor will be notified of the issue and contact made with the tenant to arrange a suitable time to repair the problem.
What happens if I decide to sell my property?
The tenant will be issued with a letter stating your intentions as is legally required to do so. After this the Property Manager will talk to the tenant about suitable access for potential purchasers and with their agreement, form a plan for this arrangement. In many cases investment properties pass onto other investors and the Property Manager can provide advice on this matter.
For Periodic Tenancies: If the property is sold and the purchaser requires vacant possession, the tenant will be issued with 90 days written notice. Should the tenant wish to leave earlier they are bound by the Residential Tenancies Act to provide you with 28 days written notice.
For Fixed term Tenancies: The property must be sold with the tenant in place.
What happens if the owners want to move back in?
If the tenants are on a periodic tenancy, if you or a family member wish to occupy the property, 63 days written notice must be given. Should the tenant wish to leave earlier they are bound by the Residential Tenancies act to provide 28 days written notice. If the tenant has a fixed term tenancy, it usually cannot be ended earlier.
What happens if the owner just wants the current tenant out?
The Amendment Act has now come in to force. Landlords can no longer end a tenancy by notice, unless they are selling the property (conditions apply), moving back in themselves (conditions apply) or if they are substantially renovating or demolishing the property. For more information, please contact us.
How does the tenant give the keys back when they leave?
The tenant will arrange a time with the Property Manager to inspect the property for the final bond inspection and hand the keys back. In some cases, the Property Manager will arrange for the tenant to drop the keys back into our office.
How does the tenant get the bond back?
After the final inspection the Property Manager will arrange the release of the tenants bond unless there has been damage to the property or the rental account is not up to date and then they will claim either all or a portion of the bond for the owner.
How will I know if my property is compliant with Healthy Homes Regulations?
We will arrange a full Healthy Homes Assessment for each property by a licensed professional who can provide a full report and compliance certificate. Collective First National is committed to ensuring that all properties comply with current and new legislation within the required timeframes.
How often do you inspect managed properties?
Every 13 weeks. A comprehensive report is sent to the owner once this has been carried out, along with any maintenance issues.
Who will manage our property?
One of our experienced Property Managers will be allocated to manage your property. email us