Liaison between Owner and Tenant Major Part of Property Manager Role

If you have just purchased an investment property the first decision to make is whether you are going to manage the rental of the property yourself, or place it in the hands of a professional property manager. If your time is limited and your life busy with many competing priorities, the time and energy it will take to manage this property is probably something you don’t have. Most people who have investment properties have found that professional property management is by far the most efficient and cost effective way to protect their investment and maximise their rental returns.

Local Area Knowledge and Professional Skills Essential

An experienced and reputable property manager has personal characteristics necessary for the role such as patience, tolerance and honesty, and the ability to diffuse difficult situations quickly. They also have professional skills like excellent time management and communication abilities, conflict resolution and a sound and current knowledge of the relevant legislation and regulations. A thorough knowledge of the local area around the investment property is also useful when showing the investment property and when comparing values and rent prices.

Property owners often don’t realise the amount of administration involved in securing a suitable tenant for their property. To a property manager this is just second nature, and ensuring that the correct inspection reports and tenancy agreements are completed and signed before handing over the keys is just the beginning. There are regular inspections to be scheduled and completed on time, calls from the tenants to be taken and issues resolved, repairs to be organised from time to time and information about the property to be communicated to the owners.

The property manager is the liaison channel between the owner and the tenant, and as such, keeps both parties at arm’s length. This is very important in dispute situations where the property manager works to get a diplomatic solution to an issue so the tenancy can continue to the satisfaction of all parties. While most Christchurch Real Estate rentals are smooth sailing with few problems, there is always the potential for disagreement, and having a property manager handling the situation gets it resolved quickly.

Leave Recovering Rental Arrears to a Property Manager

Sometimes a tenant may fall behind in rental payments through a loss of employment or some other unexpected circumstance. It is part of the property manager’s responsibilities to monitor these situations and work with both the tenant and the owner to find the best solution. It can also be a scenario where the tenant has simply abandoned the tenancy and left owning rent. Again, the property manager is trained to deal with these situations and will work to firstly, try and recover any unpaid rent and then to get the property rented again as quickly as possible to protect the owner’s interests.

There is simply too much work involved these days for an investment property owner to self-manage rental property. When there are trained, experienced and capable property managers ready to look after your property, why put yourself through it? Click here….

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Why Should You Rent Out Your Property?

If you own a house and you are thinking of buying a new one, you probably think that the best strategy is to sell your current property to make it easier to buy the new one. But this is actually not the best you can do. You can rent out your existing property, which will mean a bit more work, but it will help you make a good investment move. This can also be the start of building real wealth.

What are the Benefits?

Selling your property sounds like the most logical thing to do since you need money to pay for the new house you are aiming for. But you can borrow from a bank to finance your new property and still keep the one you own. Banks will be happy to lend to you since they feel safe provided that you have enough equity on your existing property. Buying a second house will also increase the amount that you can lend since they will use the two properties to assess your collateral. So, in fact, you do not really need to have ready cash to purchase the new home.

But you have to be careful about taking out a loan that combines the two properties into one. You can stand to lose your home if something bad happens to you and you fail to meet payments. The best deal for you would be a separate loan. If you are renting the property, you can take advantage of some tax deductions if the rent is not doing well.

Renting Vs. Selling

Even if the value of the existing property has increased from the time you purchased it, there’s a big possibility that you could lose if you sell the property. If there is weak demand for homes for sale, the value could go down and you won’t realise any profit from the sale. On the other hand, Christchurch real estate rentals are always in good demand because not a lot of people can readily start to buy their own homes.

Renting out the property is also a good way for you to wait for a more sensible time to sell, if that is really your intention. Renting is also a good choice if the selling price for your house is lower than what it should be. If you need to move to another place right away, but the home sale market isn’t that good yet, you can rent out the place for the moment. You might actually profit from the rental and consider the property rental

To gain help in renting out your property, click here.

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Simple Suggestions for Rental Payments will Assist Tenants

 

For tenants in a Central City Christchurch real estate rental property there are two major issues relative to their rent that they must always be watching. One is to keep an eye on the prices of comparable rental properties in their area so that when their tenancy agreement is up for renewal, they are in an informed position in rent negotiations. Another is to have their own process in place to ensure their rent is paid on time, to keep their reputation as premier tenants intact.

Tenancy Agreement Terms Establish Payment Dates

When a tenant rents a property through Harcourts Grenadier Accommodation Centre, they are given several payment options to ensure that the rent is paid into the nominated bank account on or before the due date. Their tenancy agreements state clearly that rent is to be paid in advance with no exceptions. For an unfurnished property, the standard payment requirement is one week’s rent at the beginning of the tenancy and three weeks refundable bond. On payment, the rent is now due the following week.

Understanding clearly the due date is the key for tenants who want to do everything by the book. If, for example, the tenancy commences on a weekend, the rent is due on the Friday night, and Harcourts expect to see the payment on the bank statement on the following Monday morning. Tenants have the flexibility to pay weekly, fortnightly or monthly but regardless of which option they choose, the rent must always be in advance. If tenants are not clear about this requirement they must discuss it with their property manager immediately so a process can be put in place to keep the rent up to date.

Automatic Electronic Payments Easy Option

The easiest way for the tenant to manage this is to set up an automatic payment authority for the rental payments to be transferred electronically on or before the due date. Once this is established the tenant does nothing more than ensure that there are sufficient funds in their account when the payment is due to come out.

Harcourts Grenadier Accommodation Centre also offers a manual payment option through issuing the tenant with a rent book. This book has all the account details pre-printed so that all the tenant needs to do is tear out a slip and deposit it with the payment at any Westpac branch. The special coding will ensure that the payment will be identified as coming from the correct tenant when it reaches the agency bank account.

The agency has made every effort to assist tenants to pay their rent on time, but they also understand that things happen out of the blue that can cause unexpected financial hardship. Provided the tenant contacts the property manager immediately they are aware they cannot make that payment, options can be negotiated. There is a “paying rent” page at http://www.assetmanagers.co.nz for any tenants who want more details.

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Harcourts Grenadier Accommodation Centre negotiate more the 1,500 tenancies every year, and have the knowledge and experience to secure you the best terms to maximise your rental income.

Harcourts Grenadier Accommodation Centre negotiate more the 1,500 tenancies every year, and have the knowledge and experience to secure you the best terms to maximise your rental income.

Harcourts Grenadier Accommodation Centre negotiate more the 1,500 tenancies every year, and have the knowledge and experience to secure you the best terms to maximise your rental income. http://www.assetmanagers.co.nz/

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Having Difficulty Paying the Rent? Don’t Delay Contacting the Agency

Every lessor and property manager wants tenants in their rental properties who look after the dwelling, keep it clean and tidy, reports any repair and maintenance issues promptly, and most importantly, pay their rent on time. Most property management agencies take great care to select tenants with good references and a demonstrated ability to cover the financial commitment that a tenancy agreement entails. Many offer flexible payment options like direct debit, electronic transfer and tools like a rent book, pre-printed with the agency’s bank details.

When Life Gets Tough – Get Proactive

Despite having all these systems in place, sometimes a tenant is unable to make a rental payment on time. Most people experience times where their financial arrangements have suddenly gone amiss. They may lose their job, or have a large, unexpected expense. Extended periods of illness or hospitalisation in the family can quickly eat up cash reserves. Tenants also experience these difficult life events and these are no reflection on the ability of the St Albans property management agency to look after the client property.

It is important for tenants to understand that failure to pay their rent on time is a breach of the tenancy agreement. Taking proactive action by immediately contacting the agency before the rent is due is the responsible and sensible thing to do. When the tenant has a good relationship with the property manager and has caused no previous problems, it is very likely that the agency will assist the tenant to work through the issue.

Talking Through Financial Problems is the Sensible Approach

Similar situations occur in financial institutions where clients stop paying their mortgage or loan repayments. They may have a very good reason for being unable to pay, but all too frequently, they ignore the issue and don’t make contact with their loan manager. Sometimes panic sets in and they ignore repeated requests from the lender to make contact. This usually leaves the lender no alternative but to have them in breach of their lending agreement, when a quick phone call could have given them an alternative.

For a tenant the situation is similar and the need to make immediate contact with the property manager just as urgent. It would be very unfortunate if the tenant knew in advance that they would have difficulty meeting a rental payment, and did not take this action. It could result in their clean tenancy record being tarnished, and make it more difficult for them to rent subsequent properties.

If the situation is going to be temporary, it is usually possible to make some arrangement, provided the agency and the lessor know about the situation immediately. However, if there is no contact and no rental payments, the property manager has no choice but to assume the worst and take the steps allowed by law to remedy the situation. Quick action and immediate contact is the way to go. Click here for more information……

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Care Needed When Selecting Best Value Investment Property

For investment property owners to get the best financial return on their rental property there are a couple of indicators that they need to keep under review. Firstly, the property needs to have a high rate of occupancy. It is inevitable that they will lose a  few days rent between tenancies while the property is inspected and advertised. However, long periods of time without a tenant will quickly affect their cash flow and diminish the value of the investment.

Secondly, they need high quality tenants who will look after the property, pay their rent on time and report any repair and maintenance issues promptly. With good tenants in place, the cost of repairs is minimised, the property does not deteriorate and a steady income flows back to the owner.

In Demand Locations Give Best Rental Returns

Finally, the property itself needs to be the size and type that most tenants are looking for. It is much more difficult to find long-term tenants for a unique property than for the average type of dwelling. It should also be located in an area where there is solid demand for rental properties. A large home on acreage hours from a major centre may be delightful, but demand will be limited in the Real Estate market and therefore may spend long periods of time unoccupied.

Harcourts Grenadier Accommodation Centre specialises in managing residential properties, and with over twenty years experience in the industry, they know the rental hotspots in the area. Their dedicated property managers are taking enquiries from prospective tenants every day. As a result, they are in an excellent position to know what properties are in demand and what tenants are looking for. This knowledge is very useful for anyone contemplating buying an investment property to rent.

No One Size Fits All Property for Tenants

This type of Christchurch real estate investment is usually not speculative, with the investor looking for long-term rental returns that produce good cash flow. Historically, these returns have tended to come from rental properties close to reliable public transport and employment opportunities. For families with children, a property with yard space, access to supermarkets, schools, sporting facilities, parks and entertainment venues such as movie theatres will decide the outcome when it comes to a choice between several rental properties.

Single person households or couples without children will have different priorities. They are more likely to look for smaller dwellings requiring little maintenance, either free standing or in a unit complex. Access to restaurants, shopping, transport, work opportunities, cultural experiences like theatres and markets, health and exercise facilities such as gyms and exercise classes, within close proximity will attract this demographic.

The investor needing guidance in what type of property and where to buy should contact Harcourts Grenadier Accommodation Centre and ask about the most requested types of properties. This type of local knowledge is invaluable, and will help narrow down the properties to inspect. Their website at www.assetmanagers.co.nz is a treasure trove of information. An informed decision is a better decision and after settlement, Harcourts will also find the best tenant.

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Care Needed When Selecting Best Value Investment Property

For investment property owners to get the best financial return on their rental property there are a couple of indicators that they need to keep under review. Firstly, the property needs to have a high rate of occupancy. It is inevitable that they will lose a  few days rent between tenancies while the property is inspected and advertised. However, long periods of time without a tenant will quickly affect their cash flow and diminish the value of the investment.

Secondly, they need high quality tenants who will look after the property, pay their rent on time and report any repair and maintenance issues promptly. With good tenants in place, the cost of repairs is minimised, the property does not deteriorate and a steady income flows back to the owner.

In Demand Locations Give Best Rental Returns

Finally, the property itself needs to be the size and type that most tenants are looking for. It is much more difficult to find long-term tenants for a unique property than for the average type of dwelling. It should also be located in an area where there is solid demand for rental properties. A large home on acreage hours from a major centre may be delightful, but demand will be limited in the Real Estate market and therefore may spend long periods of time unoccupied.

Harcourts Grenadier Accommodation Centre specialises in managing residential properties, and with over twenty years experience in the industry, they know the rental hotspots in the area. Their dedicated property managers are taking enquiries from prospective tenants every day. As a result, they are in an excellent position to know what properties are in demand and what tenants are looking for. This knowledge is very useful for anyone contemplating buying an investment property to rent.

No One Size Fits All Property for Tenants

This type of Christchurch real estate investment is usually not speculative, with the investor looking for long-term rental returns that produce good cash flow. Historically, these returns have tended to come from rental properties close to reliable public transport and employment opportunities. For families with children, a property with yard space, access to supermarkets, schools, sporting facilities, parks and entertainment venues such as movie theatres will decide the outcome when it comes to a choice between several rental properties.

Single person households or couples without children will have different priorities. They are more likely to look for smaller dwellings requiring little maintenance, either free standing or in a unit complex. Access to restaurants, shopping, transport, work opportunities, cultural experiences like theatres and markets, health and exercise facilities such as gyms and exercise classes, within close proximity will attract this demographic.

The investor needing guidance in what type of property and where to buy should contact Harcourts Grenadier Accommodation Centre and ask about the most requested types of properties. This type of local knowledge is invaluable, and will help narrow down the properties to inspect. Their website at www.assetmanagers.nz is a treasure trove of information. An informed decision is a better decision and after settlement, Harcourts will also find the best tenant.

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Landlord Insurance: Don’t Be Without It.

If you own an investment property, you are exposed to many risks that don’t apply to property owners who occupy their properties. Regardless of how carefully your tenants are screened or how strong their contractual obligations, tenants can break leases, damage or neglect your property, causing you additional expense and potentially making it impossible for you to generate an income from your Richmond Real Estate property for a period of time.

The consequences for mortgage repayments and income are obvious. If your property is not tenanted, you are not only out of pocket, but you are left to fulfill your financial obligations – mortgage, rates, utilities – from other funds.

Cover Your Risk

Just as with any risks, the wisest course of action is to insure against these risks. This is called Landlord Insurance. A good property manager will advise you to take out Landlord Insurance as part of setting up your property for lease.

Landlord Insurance is structured specifically for owners of investment properties to protect them from risks caused by tenants who default, abscond, or damage the property. Property damage may be accidental or malicious.

Tenants might default on the rent and there be no possibility of recouping the rent from them. Your policy should offer a defined number of weeks’ rent cover (to a maximum dollar value) if your tenant defaults on the rental payment. It might be that the tenant leaves the property without notice or the rental agreement could be terminated due to hardship and the tenant’s inability to pay the rent. It even covers the contingency of the death of the tenant.

You should also check that your Landlord Insurance offers protection against theft by your tenant, as well as accidental and wilful damage.

Co-lateral Damage

Landlord Insurance can offer an optional Prevention of Access clause. This protects you if your property cannot be accessed due to damage to a neighbouring property. In this case, there might not be any damage to your property, but your tenant might still be forced to vacate for a period of time, and you will find yourself without income from the property.

It’s also important to ensure that your policy covers the legal expenses you might incur for any default, damage or theft by your tenant.

When you apply for Landlord Insurance, you will need to answer a range of questions. These questions will include a description of the property and questions about your insurance history.

To learn more about Landlord Insurance and the importance of having it, click here.

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Good Property Managers are Superhuman

With hundreds of rental properties under management, Harcourts Grenadier Accommodation Centre believes in training their property managers to the highest industry standards. A good property manager must strike the right balance between the needs of the client and the tenant. www.assetmanagers.co.nz

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Good Property Managers are Superhuman!

Despite the sometimes difficult conditions that the real estate industry goes through as part of the normal economic cycle, it is still a vibrant and exciting industry. Property development, real estate sales and property management are the most popular occupations that attract new people, and keep the long-servicing experienced stayers interested. Administration people also find purpose and excitement in the industry and they can carve out lengthy and rewarding careers.

Wide Range of Skills Needed to be Successful

While all occupations have their challenges, within the real estate industry the role of a property manager has to be one of the most complex. As well as a range of knowledge and technical skills, a successful property manager must also possess some strong personal traits. Listening and communication skills, being organised, understanding and utilising time management tools and a great amount of patience are among the attributes that help a property manager to do the job with the minimum of stress.

So just what does this superhuman being do? The role of property managers is first and foremost to look after the rental properties in their portfolios on behalf of their clients, the property owners. Harcourts Grenadier Accommodation Centre has one of the largest property portfolios under management in the country, and their property managers are carefully recruited and trained. To be successful in the role, they must balance the desire of the property owners to get the maximum return on investment with the needs of the tenant to have a comfortable home at a price they can afford.

Training and Time Management Essential

A property manager must be prepared to undergo continuous training to keep up to date with regulatory and industry changes. They need to use their time well to be able to schedule and conduct regular property inspections for existing clients while sourcing new clients and properties to expand their portfolio. Part of their role is to interview prospective tenants and to try to match their wish lists in a rental property with the stock they have available.

There are some initial steps in starting a new tenancy that are required by law. A good property manager knows the process and understands the importance of getting all documentation completed correctly, and signed by all parties. They are also well versed in tenancy law and able to act on behalf of their clients with confidence.

Some of thebest Richmond Real Estate rental properties are under management by Harcourts Grenadier Accommodation Centre. Their clients know that their valuable real estate assets are in the best of hands. Harcourts’ property managers demonstrate the attributes already mentioned as being necessary to perform the role to the highest standards. The glowing testimonials on their website at http://www.assetmanagers.co.nz are tangible evidence of the role of the property manager in maximising return on investment, and securing the property in good condition ready for the next tenant.

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