1 March 2019 Newsletter. - 1st Mar 2019

1 March 2019 Newsletter. Occupancy rate 99.48%   Arrears – 027.% for February 2019
 
At the time of writing a second fire outbreak is engulfing our region. Our thoughts and best wishes go out to those effected by the initial evacuation in Pigeon Valley/Wakefield and now throughout Redwood Valley/ Upper Moutere.

The Healthy Homes Guarantee Bill was introduced last Sunday by the Labour Coalition Government. This has sparked an enormous debate amongst commentators and experts in the industry, leading one commentator to state that it will cost the average Landlord $7,000 per property. This is not a statement I believe. During the last 2.5 years Landlords have been insulating properties in line with the introduced legislation with the majority of our properties meeting those standards. Coupled with the fact that most rental properties on our books have a fixed form of heating in the lounge (heat pumps, log burners, gas fires etc) the work has been done and as such should comply with being able to heat a lounge to 18 degrees.
False alarm.
However after 1 July 2019 properties still requiring insulation will have to have Ground Vapour Barriers installed as part of the new standards.
 
Rental Market
 
Rental inflation has been trending higher recently, with policy changes aimed at making property investment less attractive playing a role. Rental affordability has not worsened in aggregate, but some households will nonetheless be feeling the pinch. Going forward, waning population growth is likely to see pressure on rents subside somewhat. Yet with the pipeline of policy changes continuing, including possible extension of capital income taxation, rental inflation is likely to remain solid as investors attempt to maintain returns. Overall, we expect the recent trend of rental inflation outpacing house price inflation to continue for a while yet. Headwinds are expected to continue to act on the market for existing housing, while property investors attempt to recoup some yield by increasing rents. (New Zealand Property Focus ANZ)
February has seen a significant increase in the numbers of properties listed for rent in the region. As of 27/02/19 the number of properties stands at 131 (previous month 105). This is comprised of 24 One bedroom properties, 30 two bedroom properties, 57 three bedroom properties and 20 four + bedroom properties.
There is strong demand for good quality properties in the hill suburbs, Nelson Central and Richmond.
We continue to see high numbers of new arrivals to the region both nationally and internationally.
The median rent received in Nelson/Tasman for the month ending January 2019 was $413.75; an increase of $4.17 per week from December. The average rental in Nelson/Tasman has increased by 7.5% in the past 12 months. (NZ Property Investor) This increase I believe can be attributed to Landlords looking to start taking steps to offset the letting fee being charged to Owners, contrary to the opinions and thoughts of those in Government. 
  
Meet the Team
  
Georgia Rose – New Business/ Administration
Georgia, as well as being our Director of First impressions, holds the role of New Business Officer. Georgia often tells me that she loves her job and I can see the passion she has for the industry on a day to day basis.
A recent 1st home buyer, Georgia can be found enhancing her house and section most weekends. Having been with the company for 4 years Georgia has developed a good understanding of property management and works well with prospective Landlords and growing the business. Georgia is an avid motorbike rider and a keen fisherperson in her new boat, however we are yet to see the catch in the office though!
 
Rental Disbursement
 
The next rental disbursement will be on Friday 15th of March for mid-month payments and Monday 1st April 2019 for the end of the month payment and statement.
  
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From the team at have Property Management.

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