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Archive for July, 2009

Why can’t we?

July 31st, 2009

Why can’t we as landlords simply give a tenant notice to vacate as per the Tenancies Act and have them go? Why do tenants have the right to appeal to say “No we won’t go”? Surely as the landlord, if you want the tenant out of your property and give them the required legal notice that should be the end of it?

It boggles the mind.

In recent news (http://nz.news.yahoo.com/a/-/mp/5763819/tribunal-rules-for-housing-nz-in-eviction-case/) Housing New Zealand had to go to the Tenancy Tribunal to have eviction notices upheld.  This in itself is really annoying. Yet again, I cant help but ask.. If you give the tenant notice to vacate under the Residential Tenancies Act (and they are not in a fixed term lease) then why do they have the right to appeal that. Whether you have them as tenants is surely your choice?

What I found even more annoying was that the people being evicted had a QC as their lawyer and that he reprsented them at the Tenancy Tribunal. .

Whats more, they are now appealing the decision.

Its simply mind boggling.

Shayne Thurston
Lambton Property Management

Shayne's blog, Thoughts and Opinions

Writing a good Ad

July 21st, 2009

After some time writing an ad for a newsletter today, I took some time to reflect on writing good ads.

For renting a property there are a number of things that must be in the ad and others items that help.

Obviously, the suburb is crucial, so is the number of bedrooms. While some people think that you can leave the price out - you can’t. Most people simply jump the ads that dont mention price.

Include things such as heatpumps, dishwashers, decks, parking - In Wellington, parking is a plus, so if its there include it.

Dont mention things like.. Only gets afternoon sun, or 20 minutes to the bus. The sun is something you can discuss with people when they are there (and if the sun is very important to them - they will ask). Most people are capable of quickly sussing out the hact there is no bus there. However if its really close to transport, mention that.

I suppose in short, Suburb, Price, Parking, Whiteware etc and any other good points. Dont play up the bad points - what your ad is to do is to get people in the door, then when they are in the door you can talk to them about those things.

Shayne Thurston
Lambton Property Management

Shayne's blog, Thoughts and Opinions

No additional regulation for property managers

July 13th, 2009

A review has found that additional regulation of property managers is not justified, says Associate Minister of Justice Nathan Guy. The review, by the Ministry of Justice, arose out of comments to the Select Committee that considered the Real Estate Agents Bill about the exclusion of residential letting services, and property management services generally, from the scope of the Bill.
Mr Guy said the general principle which was applied was that an occupation should only be regulated when it was necessary to reduce the risk of significant harm, and the industry or market was unable to
 regulate itself adequately.
 “Like other service providers, property managers are already subject to a wide range of obligations under the general law, including contract law and the Fair Trading Act, which can be enforced through Disputes Tribunals and the courts.
 “When property owners have problems with property managers, the loss is usually less than $15,000, which is the new limit proposed for Disputes Tribunals. That means consumers will be able to seek redress for most problems through the Tribunals.”
 Mr Guy said the review had identified a lack of consumer awareness about what to expect from property management services and what to do when things went wrong. “The Ministry of Justice has been directed to consult with departments about options for raising consumer awareness.  “I am also pleased to see that the industry is taking steps to improve the quality of property management services. Many property managers belong to organisations that encourage best practice to ensure a good standard of service is provided.”
Occupational regulation of property managers would likely have meant additional compliance costs which could have led to job losses. The additional costs would probably have been passed on to owners and tenants through rent increases. Mr Guy said that letting services in respect of commercial property
 would continue to be restricted to lawyers, conveyancing practitioners, and real estate agents. “The Government has no plans to change that. We did not receive enough information about the commercial sector to justify changing the status quo at this time, but we will keep this under review,” he said.

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She said, he said.

July 13th, 2009

To often we hear “But the old landlord said..” or “but XX  said”….
the importance of taking dairy notes is crucial. You need to be able to say “actually in the conversation of the 10th of October we agreed that X”.

Good dairy notes give you the edge. They are needed for Tribunal Hearings, insurance conversations, discussions with tradesmen and an assorted variety of other exciting and mundane things.

Every time you send a text message, have a phone or face to face conversation with a tenant, send them a letter - make a note - date and time and save it. Its that simple.

A little bit extra work at the time can save a huge amount of time later.

Shayne Thurston
Lambton Property Management

Shayne's blog, Systems

On the market…

July 9th, 2009
We’ve seen a few properties we manage put on the market this year.  This almost always, to put it mildly, freaks out the tenants.

The Residential Tenancies Act (also known as “God”, “the Bible” and ”That Damned Inconvenient Piece of Legislation”) requires that tenants be informed when a property is put on the market. So, we need to be told by the owner so that we can then pass it on to the tenant. It keeps things a lot mellower if the proper process is followed and tenants feel “in the loop”… being surprised by a real estate agent putting up a sign is probably the worst way to find out.

Fixed term is easy. They can’t move, they can’t be kicked out, their rent can’t be changed, and while the new owner may (heaven forbid :) ) use a different management company, their experience as a tenant is likely to be pretty stable. Unless the new management company are scum of the earth… but of course, I couldn’t possibly comment.

The only fiddly thing with fixed term is that you can’t sell the property with vacant possession unless we speak very nicely to the tenants and they are willing to end their lease. They are entirely within their rights to say no. Consider bribery :).

Periodic is rather trickier; if the tenant is in a periodic lease, they may opt to give notice and find another place to live on their own terms, rather than live with the possibility that they’ll be asked to leave at a time that may not work out well for them, have the rent put up, or just have things change at all.  We have seen this occur several times, and then the owner is left with a place that’s rather difficult to rent.

Save a house that’s actually on fire, very little is more off-putting to a potential tenant than the idea of moving into a place that’s on the market. Someone recently turned down a house they adored for the sole reason that it was for sale. They were looking for a family home, and wanted to settle - the chance of being uprooted by a sale with vacant possession basically gave them the willies.

So! If you’re thinking about selling an investment property and you have tenants in a periodic lease, think hard, and consider finding out what your tenants will do before going ahead.

Rachel Borthwick
Lambton Property Management

Rachel's blog

Life as an Infomercial

July 9th, 2009

I have, as of late, become addicted to infomercials - all those perfect people, with their amazing results in such a short time, with their perfect teeth and outfits that look like they came from the 80’s - its like watching some old Pleasantville style TV show where they try to sell you stuff. Currently on TV is one for something that closley resembles Natural Glow but isn’t.

Anyway… just like Plasantville, all these people must live in one place. A great place where everyone has several science degrees and where ground breaking bleeding edge research is done - as everyone knows the latest in depth scientific facts about the products - a place where the sun always shines, where the grass is very green, where dentistry is free (I did mention the teeth earlier?).

I find infomercials just fascinating. I am really not sure why, but I do. Admittedly I have never brought something from an infomercial, but I just seem to be hooked - What I find truly amazing is that more and more infomercials have small parts redone to target NZ - surely there can not be that many people awake at this time of night eagerly clucthing their credit cards, waiting to buy their ‘not’ Natural Glow or the Pilates Hoop?

Shayne Thurston
Lambton Property Management

Shayne's blog, Thoughts and Opinions

A Motivating Day

July 3rd, 2009

Today was a motivating day. I had a coffee with someone who is becoming a very good friend of mine (that itself was nice, but the coffee was not the point of this blog). She has been through all sorts of hard times lately - marriage break up, intense IRD audit, the works. Now most people would be glum or at least a little down beat (and don’t get me wrong shes had her bad days), however she is not. She is making the best of the situation - getting going with new business ideas and a fresh burst of direction in her life. Its really motivating to see. I left our coffee date feeling motivated and upbeat - its great. I really get a good feeling when i spend time with someone who has made the best of a bad situation and is succeeding.

Shayne Thurston
Lambton Property Management

Shayne's blog, Thoughts and Opinions