Rental Properties Palmerston North – Building a Team of Professionals

Building a Rental Property Team

Building a team of professionals with proven expertise is essential in any business; including property investment, establishing a rental property team is paramount.

Crafting the right team is no simple task, nor should it ever be taken lightly.

A correctly assembled team can take your property investment business to a higher level than you ever imagined.

A rental property investing team is a collection of professionals to work closely with before, during, and after purchasing rental property investments. Your property investment team helps with sourcing deals, financing, the due diligence process, and helping you manage your property investments.

Savvy property investors know that they can’t do everything by themselves as any experienced investor knows; property investing is about leverage. They want to leverage their money, their time and the expertise of others.

Everyone in the rental property team plays a part in their success, from accountant/solicitor to their handyman.

Rental Property Team

Real Estate Agent

A good agent is worth their weight in gold. They can be a fantastic source for leads and make you aware of deals you didn’t even know existed.

Not every successful real estate agent is a fit to work with investors. You need to do your homework and find out if they are a good fit for you.

Ask them if they own any investment properties themselves and if they work with other investors. Please treat this as a job interview; it is crucial they know your goals and buying rules and are willing to help you achieve them.

An excellent real estate agent is an essential piece in building a successful rental property team.

You may even work with several different agents, each working a niche, such as an area or property type; each will bring particular skills to the table for a win-win relationship.

Tradesman / Handyman

Adding contractors and handypersons to your team to take care of renovations and repairs is critical for any property investor.

Having a good working relationship with reliable tradespeople who understand your vision can save thousands in renovation and repair costs.

I’ve found that working with top tradesman makes life easier; every job they work on runs smoother than the previous one because they understand how you operate and vice versa.

Property Manager

Good property management plays an integral part in the success of your property investing; you must get it right. Property Investing is a business; it’s vital to view tenants as customers, and you need to look after them, or you will have no business.

Treating tenants well means addressing any issues or problems they have immediately.

In an attempt to reduce their costs, many private landlords manage their properties themselves; then, some will take a month or more to fix a problem; this is counterproductive and not the way to keep tenants happy.

Unhappy tenants will more than likely eventually leave and find somewhere else to live.

A good property manager handles all the day-to-day running for you, from finding new tenants, rent collection, routine inspection, and scheduling repairs and maintenance.

It is well worth the money you pay for a reliable, trustworthy property manager; this allows you more time to focus on building your property investment portfolio, your career or relax and spend time with family.

Lawyer / Solicitor

A good conveyancing solicitor is a valuable rental property team member, keeping you safe with appropriate clauses when buying & selling and help & advice with your due diligence on prospective property investments.

Setting up tax and assets protection structures in a correct manner is extremely important. Get advice from a company/trust business structure expert.

Accountant


Since you plan to profit from your rental properties, it is crucial to know your tax obligations.

Property investors must file annual returns declaring all rental income; you can claim all tax-deductible expenses against this income.

The proper accounting professional will do much more than the above for your business and help you structure your investment portfolio in the right way to maximize profits and minimize taxes.

Mortgage Broker

The right mortgage broker on your rental property team will make sure that you get your money.

Most real estate agents will tell you that the finance process has delayed or stop offers that go unconditional more than any other reason.

An experienced mortgage broker can help you arrange pre-approval of loans quickly, allowing you to put in offers and secure deals faster.

Who else do you need to add to your team?

Building a rental property team takes time. It requires you to put yourself out there and find the best talent available. With a strong team in place, your property investing will run smoother and be much more efficient.

Do you need to sack a team member?

It may be you, on specific tasks you need to sack?

Did any of this resonate with you? Let’s meet for a coffee and a chat; there’s no obligation.

Call 027 249 8295 today.’ to see if we make a good fit.

To succeed as a team is to hold all of the members accountable for their expertise. Mitchell Caplan.

Property Investors Palmerston North – Consider Risks Before Buying

Property Investors Palmerston North – Consider Risks Before Buying

Like any other financial investment for property investors, it’s about reducing your risk; the best time to consider the risks is before buying.

Far too often, property investors purchase a property and then find faults that affect its rent-ability or a costly building defect.

Some are easily fixed at a reasonable cost; however, others cause the property investment not to perform with the return on investment first foreseen.

The below scenarios show two real examples regarding fencing issues, one dealt with at the time of purchase and the other several years later with entirely different long term financial outcomes.

Fencing Issues

Case Scenario – Busy Intersection

A real-estate agent gave a tip about a property for sale as a mortgagee-auction in a good location in Terrace End, Palmerston North.

We viewed the property; the outside needed painting at some point but not urgently. Inside was in an overall good condition, apart from requiring a fresh coat of paint in the bathroom.

The property was four bedrooms and, if purchased at the right price, looked like a bargain.

On the negative side, the property was a corner section, on a busy intersection with a low brick fence; this would affect rent-ability due to vehicle noise and lack of privacy, for sure.

The numbers stacked up, but attracting a reasonable pool of suitable tenants was unlikely.

Solution

Because the cost of removing the brick fence was not feasible, the only solution was to build a new wooden wall on top of the existing brick fence to increase privacy and reduce road noise.

The property investor put the fence costs into the equation and a done deal. The new wooden paling erected on the existing red brick looked effective and was a real improvement.

The new tenant’s commented that they didn’t notice any traffic noise inside the house; problem solved.

Case Scenario –Fish Bowl

This rental property was close to a busy shopping centre on a corner section with a netting fence; there was no privacy, and for the tenants, it was like living in a fishbowl.

The property was hard to rent and attracted the wrong type of tenant’s occupancy were low, and the landlords had to deal with tenancy issues constantly, including rent arrears.

The property investors had owned the property for several years; unfortunately, the privacy issue was not addressed right at the start when purchased.

Problem Solved

After discussion with the owners, the old netting fence got replaced with wooden for privacy.

As a result, fantastic tenants moved into the property, looking after it and paying rent on time.

If the privacy issue had been dealt with earlier, it would have saved alot of heartache, stress, worry and given a much better financial return for the property investors.

Are you losing money on your investment property?

If any of this resonated with you and you would like some help, let’s meet for a coffee and a chat to explore your options; call’ 027 249 8295 or email.

PS. All Ways Property has been using the same cost-effective profit strategies for many years now, not only on our rentals but also for our private property management clients achieving excellent outcomes for them.

Check out the rental profit review. Mention this blog, and we will do it for free

Buying An Investment Property In Palmerston North.

Buying An Investment Property

What are your buying rules?

When buying an investment property having a plan and adhering strictly to those rules is mandatory for a successful outcome.

Property investors may have buying guidelines that include a net yield for cash flow, buying below market value and or buying in a suburb for capital growth.

What about Due Diligence?

As a Property Manager, I often see due diligence is taken far too lightly. The property investor ends up with repair & maintenance costs that should be detected before going unconditional.

If your due diligence is thorough, this gives you options to either pull out of the deal or negotiate harder to allow for the upfront costs you will need to set things right.

I.e. the roof may be leaking and need a re-roofing, or some of the electrical wiring may be dangerous and need replacing.

If in doubt, building and electrical wiring reports are essential components, particularly in older houses, as you do not want your property investment to turn into a liability.

The local council is a must to check the property envelope for consents etc. Depending on the age of the dwelling, the council may have only limited information; you may want to consider a LIM report.

It’s important to check the property envelope at the local council for consents etc.

Depending on the age of the dwelling, the council may have only limited information; you may want to consider attaining a LIM report.

Keep Asking Questions.

Go to any property seminar or read a book on Property Investment, and you are bound to hear or read “be an expert in your area where you want to buy.”

Whether you are investing out of town or locally, they encourage you also to leverage the expertise of professionals such as Buyer’s Agents, Registered Valuers, Real-Estate Agents, Building Inspectors, Property Manager’s and Mentors.

It’s not just about knowing house prices, buying well, and being aware of market rent.

It is also about asking questions like the list below before buying an investment property; this is even more important when rental supply exceeds demand.

  • How many weeks per year have you allowed for vacancies?
  • Higher vacancies can happen for several reasons other than supply & demand, e.g. multiple dwellings on the same property, poor location, and poor condition.
  • Multiple dwellings are great for cash flow; they generally need expert management to keep vacancies low.
  • Where are the schools? What is the school zoning? Has the school got a good reputation?
  • What about nearby shops and other services?
  • Is there public transport, i.e. Bus stop handy?
  • Is the property close to a busy road, intersection or train line or corner section? (This may put some tenants off.)
  • Does the property meet all the healthy home standard requirements?
  • What form of heating is there? Is it sufficient?
  • Is the property insulated?
  • Is there an extractor fan in bathrooms and a range-hood over the oven to help control moisture levels?
  • Are there mould and condensation issues?
  • Is the property cold, drafty or feel damp? Are there thermal drapes?
  • Do you need to install a ventilation system, heat pump or log fire?
  • Are door locks secure? Is there security lighting?
  • Do windows open & shut?
  • How many bedrooms?
  • What about the house layout? Is the lounge awkward for placing furniture?
  • What is the size of the section & is it fully fenced? Are the lawns huge? Is it feasible to pay someone to mow them and include grounds in rent?
  • Is there garaging, a carport, and or what off-street parking is available? Is there sufficient storage inside & out?
  • Does the property need a spruce up?
  • Has it been renovated, refurbished? (particularly kitchen & bathrooms)

The list goes on.

If you find this a little bamboozling and you need help buying an investment property or reviewing an existing property do feel free to get in touch on 027 246 8295 or email.

Investment Property Palmerston North – Six Common Costly Landlord Mistakes

Palmerston-North 1

An investment property is a great way to build wealth over time with opportunities for substantial financial rewards.

Palmerston North is booming.

The below comments are taken from an article from Good Returns.

As a result, values in the Manawatu District and Palmerston North have stepped up around 15% over the past year.

The median sales price is around $470,000 in Palmerston North, and Feilding is hot on its heels at $462,500.

See full article Good Returns.

Get the best returns from your Investment Property

Six Common, Costly Landlord Mistakes.

1. Avoid making “friends” with your tenants. Treat them like your best customer.

Investing in property is a business; it is best to develop and maintain a professional “business” relationship with your tenants instead of a “personal” one.

That way, it is easier to keep emotions intact; this will ensure that you act in a responsible professional manner at all times.

Your tenants will respect you more when you treat them as “customers”.

2. Not keeping your property well maintained.

Where possible, do not defer repairs and maintenance; get it done regularly; that way keeping the property in good condition will prevent any reduction in value and ensure that the property is tenantable at the best weekly rental.

3. Ignoring Tenant Communications, especially requests for repairs & maintenance that interrupt their daily living.

Nothing is more frustrating from a tenant’s perspective than been ignored, especially when they have concerns relating to genuine maintenance issues that affect their day-to-day lives.

Sometimes these issues are minor and can be attended to with minimal cost or fuss.

At times it will not be appropriate to undertake what the tenant has asked if you’re not going to fulfil the tenant’s requests; it’s important to communicate this to them promptly.

4. Avoid being disorganised

Many investors do not use a system, choosing instead to make do with a mass of unfiled paper which records their rents collected and expenses. It is essential to use a system that records rents collected and paid to dates, at the very least.

To optimise your investment property activity and ensure all legitimate costs are captured and offset where possible, you need a reliable system that is very thorough and records all the information for each property in a clear format.

If you don’t like been involved in the day to day overseeing of your property, it’s better to engage the services of a competent property manager rather than do a half-hearted job.

Are you aware that it is an unlawful act not to keep accurate records?

5. Failing to do regular Property Inspections

Regular property inspections can save you money. When you inspect regularly, you can see how the tenant affects your property and if you need to take any action regarding this.

You can record the condition of the property and the appliances and make informed repairs and maintenance decisions.

Six monthly inspections or more prolonged periods can mean that damage or costly repairs may occur, which could have been avoided or minimised with more frequent inspections.

6. Love Property but Hate Managing it?

It takes a great deal of knowledge, skill, experience and dedication day in day out to be a competent self-managing landlord.

If you don’t have the time or inkling to become proficiently skilled yourself, it’s best to acknowledge this quickly and get professional help.

If any of this resonated with you and you would like some help, let’s meet for a coffee and a chat call 027 249 8295 to see if we make a good fit

Or email if you have any questions

All Ways Property Management is here to grow your Palmerston North Investment Property Returns with no fuss.

Rental Property Management Palmerston North

Rental Property Management Palmerston North

The market for rental properties in Palmerston North & surrounding areas is still in very high demand.Are you keeping up with market rent in your region/suburb?

Landlords have been hit severally by the Government in the last 12 months or so. With healthy home regulations, bright-line tax, interest on loans, either reducing has a claimable expense and not-tax-deductible with any new rental property purchases; it has undoubtedly put significant financial pressure on many landlords. The below scenarios show where some landlords are losing substantial cash flow and how to increase it majorly.

Rental Property Management Palmerston North

Case Scenario - Self-Managed

A busy couple did not bother keeping up with the market rent on their rental property.

They thought they might upset the tenants, and if they did increase the rent, the tenants might leave. They were good tenants, and it was better to leave things as they are. Besides, the couple worked full time, and it all seemed too hard to keep up with the market rent on their property. Let alone keeping up with repairs and maintenance and other tenancy issues.

The market rent for the three-bedroom Palmerston North rental property was $500 per week; however, the current tenants who had lived at the premises for four years were paying $430 a week in rent. $70 below the market rent adds up to a significant amount of money over a year. Multiply that by fifty-two weeks; there’s a rent loss of $3640.00. The tenants are unlikely to leave in a hurry because they know they are on a good thing, and the landlord will lose on potential profits.

If the landlord’s kept up this tactic, not keeping up or close to market rent over five years, the loss of return would be over $18,000, and ten years would likely be more than $36,000; this money could have been in the landlord’s pocket.

Rental Property Management Palmerston North

Case Scenario - Professional Property Manager 

This Palmerston North couple understood the power of leverage; having looked after their rentals properties in the past, they knew they did not have the time to do it properly.

Knowing what was involved, they would prefer to leave their properties in the skilled hands of an experienced full-time professional property manager who kept up to date with current legislation.

The property manager did timely rent reviews after researching the market and with discussion with the landlords that felt fair and reasonable to them and tenants; a yearly rent increase was processed, maximising their return on investment.

All other facets of management were carried out effectively and efficiently by the property manager, including repairs and maintenance, routine inspections and property compliance with healthy home standards.

What is Market rent? Check out this blog

Are you losing money on your investment property?

Let’s meet for a coffee and a chat – call 027 249 8295 today’ to see if we make a good fit.

PS. All Ways Property Management is here to grow your investment property returns with no fuss.

Rental Appraisal Palmerston North – Free, Prompt, Clear-Cut

What is Market Rent

It is prudent to employ an experienced property manager to do a rental appraisal that includes thorough market research.

What Is Market Rent?

Market rent is the amount a landlord might reasonably expect to receive, and a tenant might reasonably expect to pay for a tenancy.

It needs to be similar to the rent charged for comparable properties in similar suburbs.

Before advertising a property to rent or before doing an annual rent increase, it’s essential to do market research that accurately assesses the rental market by comparing apples to apples.

If a landlord charges significantly higher rent than the market rent, a tenant can apply to the Tenancy Tribunal to ask for the rent reduction.

What Drives The Rent Market?

Typically supply & demand drives the rental market, short supply; rents go up, an oversupply of rental properties on the market rents will hold or sometimes even drop.

When rentals are in high demand, it pays to keep a close eye on the market, as is the current case in Palmerston North and the surrounding areas.

Local Knowledge & Expertise

Having local knowledge of surrounding suburbs is essential.

Price your property too low, and you will be missing out on higher returns.

Price your property too high, and you may find you have much less interest from prospective tenants and take alot longer to rent.

It can be challenging and frustrating sometimes to find the right balance, which is why an experienced property manager can help advise on setting the right rent to ask. That attracts prospective tenants and, at the same time, provides you with a better overall return on your investment property.

Rental Appraisal

Comparing similar properties currently advertised online and researching historical data such as the Tenancy Services website with local knowledge of the area gives property investors and homeowners a professional opinion on what their property might rent for in the current market.

If you want to expand your investment portfolio, a rental appraisal can help gain insight into the potential returns of properties you may be considering purchasing. Or, if your property is coming up for rent or isn’t providing the returns, you would expect we can assist.

Free Rental Appraisal

Contact us for a free, prompt rental appraisal call 0272498295

Property Management Palmerston North: Get A Bigger Bang For Your Buck.

Property Management Fees Service

If you are a property investor, you are running a business. Any profitable business relies on keeping costs down. For the property investor, it is vital to understand the service level they will receive for their money before engaging a property management company.

Landlords owning residential rentals often find it challenging to choose a credible property manager they trust. It is crucial to find a property manager with experience and expertise who constantly achieves first-rate returns for their clients.

The value of employing an experienced, reliable, comprehensive property management service allows you to benefit from reduced maintenance costs, decreasing vacancies, and rental arrears, maximising your financial return.

Landlords should be wary of making their decisions on property managers based on fees alone; there is much more to property management than collecting rent.

Great property managers have the following skillsets and procedures in place.

• Skills and knowledge of the local area and a deep understanding of how to market your rental property, effectively exposing it to the maximum number of potential tenants.
• Set the rent at an appropriate level to ensure the property leases quickly while at the same time maximising the return for the landlord
• A comprehensive tenant selection procedure that secures honest & trustworthy tenants who will pay rent on time and look after your property.
• Adhere to the Residential Tenancy Act’s legal obligations that protect your interests, including compliance with the Healthy Homes Standards & Health & Safety.
• Have outstanding communication skills, including clear expectations and induction processes, particularly at the start of new tenancies.

It’s tremendously important to find a property manager who has the competency levels you need rather than the lowest property management fees.

When you are meeting property managers, focus on their professionalism. Take the time to find out how they handle arrears, inspections and rent reviews and most importantly, tenant selection.

It’s also essential to get an idea of the property management company’s current rent roll to ensure you find a property manager that understands your local area and have the experience and understanding of the properties and tenants that match your properties type and location.

Any profitable business relies on reducing risk.

By wisely choosing a competent management company, your property manager will have had specialist training in the Residential Tenancies Act. If a problem occurred the firm will have access to a tenancy law specialist a phone call away.

They will take more photos than is usually necessary; they will always document chattels, will advertise the property for rent well in advance of the current tenants leaving, so you don’t suffer the loss of rents.

Importantly they will have the time to communicate with you so you can feel comfortable that your highly valued asset is always carefully looked after.

If this article resonated with you and you want more bang for your buck, then let’s meet for a coffee and a chat; there’s no obligation.

To get in touch – drop me an email at richard@allwaysproperty.co.nz or call 027 249 8295

PS. All Ways Property Management is here to grow your investment property returns with minimum fuss.