1 July 2018 Newsletter. - 1st Jul 2018

1 July 2018 Newsletter.


Occupancy rate 97.94%
Arrears 0.52% for June 2018

 
In this issue we will highlight the proactive stance our Property Managers take in ensuring your asset is kept to the high standards we expect. Once a great tenant has been identified and signed up, we embark on a process to document and photograph the condition of the property which forms the basis of a trust and understanding relationship with the tenant and depicts the starting standard. Classified as a Commencement Inspection Report your property manager goes through the property, identifying each room, the features in each room, the condition of each feature backed up with photographs.
 
This process ensures that the tenant has an understanding of the requirement to keep the property maintained as it forms the backbone of the Exit Inspection. The report generally takes 2 – 3 hours to complete. We see this as a valuable investment of time as it ensures the tenant can be held accountable for issues outside of regular wear and tear when vacating. Properties are then inspected every 13 weeks to ensure the levels of cleanliness are maintained, any maintenance issues identified and mid to long-term maintenance identified. The proof is that when our tenants do depart 98% of the bonds lodged are refunded without issues and properties can be re-let quickly and the process starts again.
 
“What does it take to be a compliant Landlord in 2018” – a free Property Investors Seminar

Haven Property Management in conjunction with Real IQ is hosting a free seminar on the 31st July 2018 at Trailways Hotel in Nelson. Our panel of experts includes Alex Davidson (Tax Specialist) Tom Pyatt (Mortgage and Insurance Specialist), Neil Allen (Legal Specialist), Ross Alvey (Accountant Specialist) and guest speaker David Faulkner of Real IQ. Find out what is new and relevant in the industry and what it means for you. To RSVP by email click the above image.
 
Rental Market
 
Winter is upon us and we have been fortunate as a region to have experienced low rainfall thus far. Again June has been a very active month for letting properties and quality properties are in short supply. The number of prospective tenants has dropped off, however our high standards and quality vetting are still identifying great tenants.  Our occupancy levels are 97.94%. With the new subdivisions in Nelson Tasman being built on we are seeing a lot of new properties becoming available for rent. One building company spoken to stated that 5 out of 6 properties built are for investors so the market supply is increasing significantly.
The median rent for the Nelson region across all rental dwellings in May 2018 was $398.16 (New Zealand Property Investor June 2018) an increase of $5.49 per week on April 2018 and a 5.60% increase in the previous 12 months.

Rental Disbursement
 
The next rental disbursement will be on Friday 16th of July for mid-month and Wednesday 1st August 2018 for the end of the month.
 
From the team at Haven Property Management.
 
"More than just collecting the rent."
 
Copyright © 2018 Haven Property Management, All rights reserved. 
You are receiving this email because you opted in via our website. 

Rental prices soar in Nelson region as available rentals fall. - 2nd May 2018

Rental prices soar in Nelson region as available rentals fall. https://www.stuff.co.nz/business/103154086/rental-prices-soar-in-nelson-region-as-available-rentals-fall

KATY JONES - Stuff.co.nz

Last updated 17:02, April 17 2018

The percentage change in Trade Me's rental index from March 2017 - March 2018. The median rental price in Nelson has risen to $420 per week, the data shows.

Rental prices in the Nelson region have hit new highs, two reports show, on the back of a big fall in the number of rental properties available.

The median rent in Nelson/Tasman rose 10.5 per cent in the year to March to $420 a week, according to the latest Trade Me Property Rental Index.

The increase was second only to Hawke's Bay, where the median rent grew 14.3 per cent to $400 per week.

The Nelson region's rental market is tough with one renter saying 30-40 people were turning up for a viewing.

Competition for rental properties in Nelson, resulting from the shortage, was described by one house-hunter as "utter hell". 

"I went to one [viewing] in Oxford Street in Richmond, and about 30, 40 people must have turned up, if not more," said the man from Christchurch, who doesn't want to be named for fear of jeopardising the rental house in Stoke that has taken him and his family three months to find.

MARION VAN DIJK

Landlords say loan to value ratio, as well as increases in rates, insurance and maintenance costs is deterring people from investing in rentals.

The construction worker in his 40s was living in a tent in a campground in Richmond, before ex Cyclone Gita "blew it to pieces" in February, and he moved in with his partner's family.

"We were going to viewings and my partner was breaking down in tears, trying to tell them how badly we needed a place to live. And the thing I found frustrating was that we haven't got quite enough to buy a house, but we have money put aside to rent a house, and we couldn't do either."

Despite having $4000 - $5000 of savings set aside for a rental, they kept on getting turned down, he said.

Statistics released by the NZ Property Investors' Federation on Monday, showed Nelson had the third highest rental price rise of 17 cities and main areas over the past year.

The average cost of a rental in Nelson rose 9.2 per cent to $382 per week, the figures for the year to March revealed.

Rental prices in Nelson/Tasman remained static the year before, the Federation's executive officer Andrew King said.

He said a shortage of rental properties was likely to be behind the hike in rental prices.

Rental listings in Nelson fell 15 per cent in the year to March, although there had been an increase in rental listings of 11 per cent over the past month, figures provided by Trade Me revealed.

Cost increases and rule changes were potentially forcing rental investors to pull out of Nelson, King said.

"The people who are established rental property providers won't be as affected by some of these regulations as new people coming in. What we are finding is that the new people coming in just aren't there."

Changes in the loan to value ratio, as well as increases in rates, insurance and repairs and maintenance costs in recent years were some of the factors that had put investors off, he said.

"It's getting harder and harder to provide rental property."

People were also choosing not to become landlords because of unwarranted negative perceptions.

"They're seen as evil people who stop first home buyers from being able to get into the market, they're seen as charging too much in rent, and yet ironically by the finance industry they're seen as not charging enough and not paying enough tax."

Nelson Property Investors Association spokesperson Glenn Morris, who owns 20 rental homes in the region, said his rents tended to be 80 per cent or less than the market rate.

He was not considering selling up, despite past and present governments "doing things to make life harder for" property investors. 

"The people that rent the place, I've got a responsibility to them as well. Because if somebody else then bought it at today's rate, they're going to have to charge more rent to cover their mortgage."

 - Stuff

 

1 May 2018 Newsletter - 1st May 2018

1 May 2018 Newsletter Occupancy rate 97.4%   Arrears –1.08% for April 2018
 
Letting fee update
 
The new Residential Tenancies (Prohibiting Letting Fees) Amendment Bill is now at the Select Committee stage with public submissions on the bill open until the 23rd May.  Expect this to be law by Christmas with a further three months before the fee is banned completely.
 
Rental Market
 
The recent media headlines of Nelson being “a hellish market” is, I believe not accurate.  We continue to notice a slowdown in rental demand in April, however, properties are still being let to quality tenants.  The demand for fully furnished properties has noticeably reduced with high-end properties taking a longer time to draw enquiry.  As tenants notify us of their intentions to vacate, we act quickly to re-advertise the properties, with the majority let prior to the existing tenants leaving and new tenants move in soon after vacating dates. 
 
The median rent for the Nelson region across all rental dwellings in March 2018 was $385.15 (Tenancy Services Market rent April 2018)
 
With a high number of properties sales in the Nelson Tasman region continuing in April we believe that there will continue to be a shortage of dwellings available for rent.  Quality properties are still receiving higher rents and the median rent figures reflect this.
 
Rental Disbursement
 
The next rental disbursement will be on Tuesday 15th of May for mid-month and Friday 1st June 2018 for the end of the month.
 
From the team at Haven Property Management.
 
 

1 April 2018 Newsletter - 1st Apr 2018

1 April 2018 Newsletter Occupancy rate 97.7%   Arrears – 0.8% for March 2018
 
Daylight saving has ended resulting in darker evenings coupled with a cooling in temperatures. The leaves are falling so for those owners with large trees close to the dwelling we must start thinking about gutter clearing prior to winter. Easter Weekend resulted in zero call outs for urgent maintenance so a positive result.
The Government has indicated that they are looking to introduce legislation to abolish letting fees this year so by April 2019 I would envisage that we will see a change in the landscape around fees. We at Haven are working closely with industry leaders and consultants to ascertain how best to deal with the signalled changes.
 
Rental Market
 
We have noticed a significant slowdown in rental demand in March, something that has not been seen for several years. As notified last month we are still seeing asking price on most properties being achieved however the time taken to secure the best tenants is drawing out.
The median rent for the Nelson region across all rental dwellings in February 2018 was $383.15 (Tenancy Services Market rent February 2018), and the median rent the Tasman region across all rental dwellings was $377.85 a slight decrease over the last month as the rental market cools along with the weather. 
With a high number of properties sold in the Nelson Tasman region in March (118) we believe that the median sales price has not risen as with past months, demonstrating a plateau of sales prices being achieved.
 
As we head into winter it is timely to note that if your property is to become vacant, we highly recommend looking at securing a fixed term tenancy for 6 – 8 months to bring it in line with the strong summer market. With the Government also looking to impose a ban on more than 1 increase per annum, the summer letting period provides greater stimulation of the market resulting in higher rents being achieved.
 
Rental Disbursement
 
The next rental disbursement will be on Monday 16th of April for mid-month and Tuesday 1st May 2018 for the end of the month.
 
 
 

1 March 2018 Newsletter - 1st Mar 2018

1 March 2018 Newsletter Occupancy rate 99.75%   Arrears – 1.53% for February 2018
 
Are we seeing the effects of global warming effecting weather events making them more pronounced when they occur? Is this the new norm? Nelson Tasman has been hit relatively hard in the past month with gale force winds, heavy rainfall and extensive flooding. Fortunately, our maintained properties were not affected to any major extent however it is a timely reminder as we head into winter that precautions need to be taken. Our staff is great at identifying any issues with gutters, drains and run off so it will be more of the same with your property being cared for.
On the plus side, many lawns suffered throughout the summer and these are now bouncing back with the wetter conditions. Every cloud has its silver lining.
 
Following on from the appointment of Kendall last month we are pleased to introduce Michelle Ouellette to the team, recently appointed to the role of Property Manager. Michelle has a background in administration, customer relations and has managed short-term rentals. A formal introduction will be made to her portfolio clients.
 
Rental Market
 
Demand from all enquirers has slowed down over February, however, we are still seeing asking price on most properties being achieved.
The median rent for Nelson/Tasman across all rental dwellings in January 2018 was $385.00 (NZ Property Investor February 2018), a slight decrease for the 12 months ended December 2017.
We believe that the reduction is a result of more properties being used as short-term rentals over the summer and now private landlords are seeking to let properties long term again, placing more properties on the market during this time.
 
Enquiry has been strong from Owners wishing us to manage short-term fully furnished properties as a stop gap between summer lets. There are many downfalls to this approach. The consistency of annual returns, constant cash flow and susceptibility to misuse of properties with regard to Methamphetamine. This is not a market where we can comprehensively limit liability for our clients and costs are a lot higher, so we are hesitant to enter.
 
Rental Disbursement
 
The next rental disbursement will be on Thursday 15th of March for mid-month and Tuesday  3rd April 2018 for the end of the month.
 
Hot Property
 
3/87 Cambria Street, The Wood, Nelson
Deadline sale closing 08/03/18 at 4pm
www.havenrealty.co.nz/RX1362662 
 
6 Birchwood Grove, Richmond
Offers
http://classic.realestate.co.nz/3256998
 
 

1 February 2018 - 1st Feb 2018

1 February 2018 Occupancy rate %   Arrears – % for January 2017

Nelson lived up to its reputation for having the most sunshine hours in the country in 2017 and January looks to carry on the trend in 2018. With well above temperatures in January, coupled with a lack of rainfall both Councils imposed water bans leaving many lawns and gardens looking a little worse for wear. The one significant rain we had quickly brought the green back with a little more forecast in the next few days. 

We are excited to announce the appointment of Kendall Robinson to the role of property manager. Kendall has a background in project management, computing, and fitness industry. A formal introduction has be made to her clients.
 
Rental Market
 
The influx of people into the region continues to create strong demand in January.
The median rent for Nelson/Tasman across all rental dwellings in December was $399.70 (NZ Property Investor January 2018), a static result for the 12 months ended November 2017.
We believe that the static return is a result of private landlords under letting properties as they have not kept up to date with the market’s continual strong demand on rents.
 
The Government has signaled that they will review the Residential Tenancy Act in the next round of changes announced last week. Notice times to vacant, letting fees and a restriction on the allowed rental rate time frames have been flagged as priority areas. We can expect these to be moved on swiftly.
 
The Haven office will be closed on Monday 05/02/18, observing Waitangi Day 06/02/18 and will reopen on Wednesday 07/02/18
 
Rental Disbursement
 
The next rental disbursement will be on Thursday 15th of January for mid-month and Thursday  1st March 2018 for the end of the month.
 
Hot Property
 
2/ 18 Koromiko Avenue, Stoke
Deadline sale closing 21st Feb at 1pm with no prior offers https://www.havenrealty.co.nz/listings/residential_sale-1362034-stoke/
 

1 January 2018 Newsletter. - 1st Jan 2018

1 January 2018 Newsletter. Occupancy rate 97%   Arrears – 1.28% for December 2017
 

 
Welcome to the New Year! I trust you were all able to switch off from your investments safe in knowledge that they are in good hands with our staff being on call to manage any issues. I am happy to report the number of maintenance call-outs over the holiday season was limited, with no major issues reported.
 
With 18 months remaining until the new insulation legislation takes effect, there is a high percentage of properties still below standard existing insulation levels. We have been advised by our suppliers that as we get closer to the deadlines the demand for product will increase, the demand for insulators will increase and consequently the price will rise the nearer to July 2019 for work being completed. I would recommend looking into getting your property up to the required standards sooner rather than later. Funding is still available in Nelson for those tenants who hold Community Services Cards. There is no funding at present for the Richmond/Tasman area.
 
Rental Market
 
December was relatively quiet with the number of listings becoming available to rent however the demand on each listing has been consistently high as more people come into the market.
The median rent for Nelson/Tasman across all rental dwellings in November was $399.70 (NZ Property Investor December 2017) an increase of 12.1% for the 12 months ended November 2017. With a fixed term lease being preferable for most new leases, tenants are staying in properties longer and rent reviews being implemented annually with rises reflecting the market increases.   
 
Rental Disbursement
 
The next rental disbursement will be on Monday 15th of January for mid-month and Thursday 1st February 2018 for the end of the month.
 
Hot Property
 
2/ 14A William Street, Richmond
Currently rented at $435 per week with potential for an increase.
https://www.havenrealty.co.nz/listings/residential_sale-1257979-richmond/
Will consider offers over $395K
 
 

1 December 2017 Newsletter. - 1st Dec 2017

1 December 2017 Newsletter.
Occupancy rate 100%   Arrears – 0.25% for November 2017
 
Hi,
 
As the year continues to fly by this is the last newsletter for 2017. We are sad to announce that after 3.5 years Julie James has left us to pursue other opportunities. Also in December Ginnette Smythe will leave us after 6 months and we wish them both all the best. We enlisted the services of a Senior Property Manager, Sally Moore to manage the work load until suitable replacements are appointed.
 
As reported in October the landmark case of Parry v Inglis (A Dunedin landlord ordered to refund $10,900 in rent as the property had unpermitted alterations) went to the Appeals Court late November and had the order overturned. The Tenant now has a $10,900 bill to pay back to the Landlord. The Judge believed that the tenant had not suffered any detriment as the property was completed to a high standard and would consider the Landlord’s claim of $4,279. This will result in many cases that used this case as a precedent to be appealed in the coming months. However, it still serves as a warning to Landlords that sub-standard unpermitted conversions will still be susceptible to tenant claim.
 
Grocery Vouchers
 
Every year we offer Landlords the option to acknowledge their tenants by way of grocery vouchers and again we would like to extend the offer. The options remain at $50 and $100 New World vouchers. Would you kindly email Nicola directly at nicola@havenpm.co.nz to nominate your preference by Monday 11/12/17. We have great tenants looking after your properties, so we are happy to co-ordinate this good-will gesture.
 
Rental Market
 
The demand for rental properties in Nelson Tasman continues to outstrip supply and there continues to be limited stock available as more and more people choose Nelson to relocate too. Tenant enquiry is very strong from Auckland and overseas. The median rent for Nelson/Tasman across all rental dwellings in October was $394.40 (NZ Property Investor November 2017) an increase of 5.24% for the 12 months ended October 2017, the first ‘plateau’ since the 2012.
 
Rental Disbursement
 
The next rental disbursement will be on Friday 15th of December for mid-month and Wednesday 3rd January 2018 for the end of the month.
 
Our offices will be closed from 2.00pm on the 22/12/17 and will re-open on Wednesday 03/01/18 at 8.30am. Property Managers will be on-call over this period just phone our office number (03 548 3440) for the on-call person and they will be able to attend to any urgent matters.
 
On behalf of the team at Haven Property Management we wish you all the best for the Festive Season, hope you indulge in relaxing activities and welcome 2018 with renewed optimism.
Thank you for your continued support in trusting your assets with our team.
 
Chris, Nicola, Paul, Georgia, Sally and Darryl 
 

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