Navigating The New
Quinovic Pukekohe principal Marie Peters discusses the increasing importance of considering a property manager for your property investment.
1 February 2021
I first entered the rental industry as a Quinovic franchise owner in 2017. In these last few years, the industry I was first introduced to has changed significantly. Between evolving legislation, soaring house prices and more New Zealanders renting than ever before, residential property investors have entered uncharted territory. The
Government’s response has been to drive the industry towards a more professional environment. The 2020 changes to the Residential Tenancies Act (RTA) bolstered this effort with a notable rise in penalties for noncompliance.
The age of hands-off property management is pretty much over. So, what’s the best way to navigate this new, increasingly complex industry?
The first step every investor should take is to gain an in-depth understanding of their obligations as a property owner. My next recommendation is to add an expert to your team and engage a professional property manager. Here are a few of the key benefits of working with a property manager.
Experience Selecting Rental Customers
One of the top takeaways for property investors from the Residential Tenancies Amendment Act 2020 (RTAA) is the importance of choosing the right rental customer for your property. With restrictions put in place for how and when tenancy agreements can be ended, it’s essential that care is taken during the application process. A property manager has experience completing checks on prospective rental customers, as well as the time and resource available to do so. At Quinovic, we complete a minimum of four checks before approving an application. These checks usually include:
1. Pre-tenancy application form. This form complies with privacy regulations and requests details including who will be living in the home, the applicant’s occupation and whether or not the applicants have pets.
2. Meeting the rental customers in person and having a first-hand conversation with them about their wants and needs from a property.
3. Reference checks, preferably with a previous rental property owner. These are generally carried out via phone, as a conversation is more reliable than an electronic questionnaire.
4. Credit checks to ensure the property investment is financially protected. We use a specialist company to access background and a credit reporting system that is available exclusively to property managers
Expert Understanding Of Complex Legislation
In the past 12 months, we’ve seen new legislation roll out as part of the Healthy Homes standards and the RTAA. The pace at which laws are being passed is unprecedented in the New Zealand rental industry. If there is a move to regulate the industry over the next few years, we can anticipate even more changes.
At Quinovic, it is our job to keep a finger on the pulse of the industry. We have specialist knowledge of all relevant laws, how they’ve changed, and how they impact both property investors and their rental customers. With our vast experience and connections to local tradespeople, we also supply professional recommendations on the best way to comply with these laws. Working with a property manager is a great way to guarantee compliance. After all, you don’t know what you don’t know.
Availability For Your Rental Customers
The RTAA had a strong response from property investors across the country. One of the most commonly referenced impacts was the feeling of uncertainty for owners. Uncertainty over how long tenancies might last, when rental customers will give notice, and what minor changes property owners may need to approve. Working with a property manager is an effective way to mitigate the inconvenience and stress of unexpected situations.
A property manager takes responsibility for finding new rental customers when notice is given, handling maintenance requests, regularly inspecting the property, and managing day-to-day communications. This can save you the time and stress that is often involved with managing a rental property, and ensure your rental customers receive prompt responses and the best possible experience. After all, that’s why we’re here – to provide the best rental experience for all.