Even with a Property Manager, Owners still need to be Involved.

Does your Property Manager offer great Asset Management?

If not, try AGrade and see! Get two months fees free!

Many property managers focus on finding tenants and keeping your involvement to a minimum. And to an extent, I agree with that.

You are paying a percentage of your rent so that you do not need to be involved too often.

However, there are times when I think owners should be fully involved.

Firstly, reading through the Tenant Application documents sent through to your tenant selection is critical. The quality of the tenant defines the quality of the rent cash flow and also the condition of the property for the length of the tenancy.

Also reading the inspection reports and looking at the before and after photos thoroughly is essential for owners to do.

At AGrade we use an App that allows us to download photos from a previous inspection and annotate them as “previous inspection” and add a fresh photo alongside. This gives owners great clarity on minor changes. Lots of minor changes can create a major effect as we all know.

And an annual Asset Review is a great way to plan and future proof the viability of a rental property. Many owners simply want to raise rents at every opportunity ...and yes I understand why and find the changes Labour has imposed around taxation has certainly increased the cost of owning a rental property.

At AGrade we encourage you to attend one inspection each year. And we talk to you about potential improvements. Maintenance budgets, potential renovations that could add value, optimising rent, and more.

So feel welcome to contact us for a no-obligation conversation about your property.

I do not know why, in an ostensibly undersupplied rental housing market, Labour has targeted Property Investors more than any other business category with tax disadvantages. This “punish the rich” mentality has only increased rents for those that Labour pretends to be looking out for. And by removing the “ no clause 90 - days notice” owners and PMs will be reluctant to give those tenants with a less than perfect history, the benefit of a tenancy.

But back to tax, New Zealanders were encouraged to invest in property, secure their financial future and if young couples defer travel, sky, expensive toys and work hard instead to get a small portfolio of rental properties - then jolly good I say.

So why choose this business category to target?

As Winston Churchill famously said:

Trying to tax an economy out of depression is akin to a man standing in a bucket & trying to lift himself up by the handles

And what is occurring now is many kiwis can not get affordable loans for their first home. Overseas investors are picking up the majority of property for sale.

Rents are going up, maintenance is more expensive due to manufacturing not being deemed essential. (Though vaping stores could remain open)

If I appear to be facetious today, it is possible because I am. I know that no Government was well prepared for an international pandemic.

But why choose this time to penalize the kiwis who are investing in real estate, that’s the part I do not understand.

Does your Property Manager offer great Asset Management?

If not, try AGrade and see! Get two months fees free!

9 views0 comments