Rental Market Update
The Ministry of Housing and Urban Development have finalised their standards and timeline for Healthy Homes. The next compliance deadline is set for 1 July 2021 and introduces standards for heating and ventilation, moisture, drainage and draughts. We have already started auditing our rental properties for compliance, and your property manager will be in contact with you over the next few months should your property require any modifications prior to the 2021 deadline. In the meantime, if you have any specific questions or feedback, please contact your property manager.
Compulsory Insulation in Rental Properties
The deadline of 1 July for ceiling and underfloor insulation is fast approaching. We are happy to report that because we started the process about 18 months ago, at the end of April 93% of our rental properties were compliant or had been issued with exemption certificates. As at today’s date, this has increased to 99% compliant or exempt.
This means we know exactly what insulation is present in the roof and under the floor (the two compulsory insulation areas) in 99% of our managed properties and we can meet the mandatory legal requirement to include accurate and up-to-date information about insulation in all our tenancy agreements. We think this is a fantastic result and want to thank all our owners for working with us to achieve it.
If your property is one of the few that have been assessed as being non-compliant, please contact your property manager today. Time is most definitely running out for you and your property! Don’t risk the possibility you will have to pay your tenant $4,000, which is the amount you may be fined.
Smoke Alarm Testing Programme
Our new arrangement with smoke alarm testing company SATS, who have taken over the installation, testing, servicing and management of smoke alarms in our rental properties, is now well underway. So far, we have been very happy with the quality, accuracy and responsiveness of their service delivery.
If you are one of the few owners who initially ‘opted out’ of the SATS ‘special offer’, and you have decided to assume personal liability for the annual, and between tenancy testing and maintenance of the smoke alarms in your rental properties, we would urge you to reconsider.
At the cost of just $99 per year, per property, SATS smoke alarm management and service plan will take on the legal responsibility for ensuring the smoke alarms are always functioning.
If you would like to discuss this further, please contact our Principal Mary Vinsen:
P: 09 373 4353
Meth Testing Rental Properties
Meth usage in the community continues to make news headlines. Below is a link to a NZ Herald article that appeared this month describing how New Zealanders spend nearly $1.4 million cash on methamphetamine every single day, based on police analysis of three months of drug testing of wastewater.
Quinovic Parnell has a zero tolerance towards illegal substances being consumed in our rental properties, and we operate an ‘opt-out’ approach to meth testing – this means we will test your property between tenancies unless you tell us not to.
If you would like to know more about our meth testing programme, please contact our Business Development Manager Kerry Kirwan:
M: 022 010 8005
Capital Gains Tax
The Prime Minister’s announcement on 17 April that none of the Tax Working Group’s capital gains tax recommendations will be adopted, came as a huge surprise to most of us.
NZ Property Investors Federation Executive Officer Andrew King describes the Government’s decision as the right decision to make. But he does note the Government is planning to target speculation and land banking and says he is concerned that there will continue to be a confusion of rental property owners with speculators.
“We hope the Government realises that they need private landlords, who provide about 85% of rental properties, and that hurting landlords will also hurt tenants at a time we have a rental crisis.”
At Quinovic we view this decision as being a very positive move for the property industry generally, and we hope it will bring a greater level of certainty to the rental property investment market going forward.
Increasing Rental Returns
Rents are continuing to rise, and over the last 12 months, within the Auckland Region the average annual increase ranged from 1.2% on the North Shore to 5.4% in Franklin.
As the chart below shows, Auckland rent increases tended to be stronger in the region’s northern and southern edges than they were in Auckland’s central and western districts. However, the overall rental growth of 2.8% between the first quarter of last year and the first quarter of this year, was well down compared to growth of 4% achieved in the previous 12 months.
Information dated 27 April and sourced from www.interest.co.nz
What does this all mean for you and your property? Quinovic Parnell actively manages the rental returns of all our managed properties to ensure they are keeping up with the rental marketplace. Under current tenancy legislation we can review rents every six months, and your property manager does this review in consultation with our Business Development Manager who is our in-house rental appraisal specialist.
Your property manager will contact you at the appropriate time with a suggested rental increase (if appropriate), but if you wish to know more about rental values specific to your property, or indeed anything else about rental pricing and rental returns, please contact Kerry Kirwan:
M: 022 010 8005
Thinking of buying a new rental property?
Did you know we offer a free rental appraisal service? As a specialist in residential property management, we have no vested interest in the selling side of real estate. This means that our rental appraisals are often viewed as being more independent and accurate than those supplied by the real estate firm selling you a property. If you are in the market for a new rental investment (or if you are thinking about buying one), we can undertake an appraisal at the pre-purchase stage, before you make a final decision.
We can also help you with information on what rental property features tenants are looking for, and which ones they are willing to pay a premium for.
If you would like to know more about rental appraisals, or if you have any questions about the Auckland rental marketplace, please contact Kerry Kirwan:
M: 022 010 8005
Needing specialist help and advice?
Over the past nearly 20 years Quinovic Parnell has been operating, we have developed a network of professional contacts covering all aspects of buying, owning, developing, renovating, even selling, of rental properties. Unlike many of our competitors we don’t accept commission for passing on sales leads. This means that when we recommend a network partner to you, it’s because we genuinely believe they will do a great job.
Our networks include:
- Professional advisors like solicitors, accountants and valuers – all of them specialists in residential rentals.
- Mortgage brokers who can assist you with a wide variety of refinancing options – even if your own bank says ‘no’.
- Builders, architects, landscape and interior designers who can help if you are looking to upgrade or renovate your rental property.
- And if you are looking to buy or sell – experienced and successful real estate agents who understand the nuances of your type of property and location, or who can work with you to find the you the perfect rental investment to purchase.
Please ask us, we are always happy to refer you to one of our network partners.