apartment rental Archives - Apartment Specialists

Tag: apartment rental

SUMMARY:

You can change property management companies by filling in two forms – transfer from and a Department of Housing change of landlord or agent form.

Not all management n companies are the same and this may lead you to require changing property management company at some time during the ownership of your property. Your circumstances may change and you may want to take the management role on yourself.

However, more importantly before signing a property management agreement check to see what terms and conditions are in place – many companies will want to lock you in for a fixed amount of time.

Be aware to maintain your insurance policy with a rental property the management company must be checking the poverty at least 4 times per year.

If you do want to change though don’t let the process put you off as it isn’t hard.

You need to simply fill out the two forms attached below and let the right people know the new details. You must give a copy of the management form to the existing company and the tenants will need to be advised of who will be the new managers of the property with their contact details. The bond centre will be notified of this change too.

TRANSCRIPTION:

Good day, Andrew Murray here from the Apartment Specialists, talking about how can I change my property management company, or change from the property manager I’m using to a new one, or manage it myself.

Now, not all property managers are created equal, and a lot make the service that landlords require, a lot of money on rent, and I see this all the time, and especially ones just don’t do the rental checks. So they’re not actually checking your property to see how well it’s being looked after, and that means in a lot of cases your insurance wouldn’t even actually go through, because you have to be checking your property four times a year for your property insurance to actually be able to be viable.

So, the key thing is, if you do want to change, don’t let the process put you off, because it’s actually very easy. Because you just let the other agency, or the new agency you’ve been recommended do all the work for you. Or if you want to rent it– do it yourself, it’s still actually quite easy. It’s just about filling in a few forms. So, all you need to do is fill out a transfer form, and a Department of Housing Change of Landlord or Agent form, and give that to your agent and they’ll do it all for you. Or you can take on that responsibility yourself, and fill out the Department of Building and Housing transfer form, issue that to your old– now to be old property manager and away we go.

The key things of what will be happening, whether your agent will be doing it, or whether you’ll be doing it, is you’ll be contacting the old management company and giving them over that transferal and change of agent form, you will be contacting your tenants, or the agent will be contacting the tenants. The tenants will be given contact details, new contact details of who they need to contact if something occurs or something needs to be fixed, and the Bond Centre will be notified of a change of agent or landlord.

Now, it is very important that if you’re not happy, that you actually go through this, but the unfortunate thing is the change is not always immediate. A lot of these property management companies, they lock you in, so I’ve seen them anything from no notice to 12 months notice. So that means when you signed up for a property management company – even if it’s a really, really good one, you’ve been recommended it – look through the clauses and see, okay, how long have I been locked in for, or will I be locked in for? And if you are, strike it out. Because you shouldn’t be locked in.

So from that point of view, yes you may change but it may take a few months for it to effect, purely because of those clauses. Anyway, I hope that helps. Andrew Murray, Apartment Specialists.

If you have any questions, flick me an email at andrew@apartmentspecialists.co.nz or call +6421 424 892 and I’ll be happy to answer your queries.

Cheers.

Apartment Specialists Podcast No: 138

Summary:

When you rent out your apartment, you want to get the best price and maximum return. When is the best time to rent out your apartment to get the maximum income? Watch this podcast and get some insights on when you should rent out your apartments.

TRANSCRIPTION:

Good day, Andrew Murray here from the apartment specialists talking about when is it the best time of the year to rent your apartment? If your apartment is out of sync, or your tenancy is coming up at a time, then it is not the best time of the year. How do you get it to come up at that time?

Let us start where you have got over 20,000 apartments in the Auckland CBD, where at least 50% of them are tenanted. That is 50% of these apartments are owned by investors and are rented out to people. It is very important to rent out your apartment at the right time. If not, you are going to get lower rent. You are going to have vacancies and you are not going to get the good return. You are looking for the most income and it is going to make it difficult.

First of all you can see that there is a circle in front of you with the months of the year. I am going to go through explaining why this is the best times and the not so good times to be renting  your apartment. I am also going to talk about explaining how to get your apartment to come up in that time and what you should be doing.

As you can see in front of us, we have got January, February, March through to December. Let us start with the worst time. Okay? I will put that in red from October through until early January, or probably towards mid-January. Basically, from about October, all of the university students go home. A lot of English speaking students from overseas or foreign students start going home, and their courses start finishing.

You have a lot of people starting to change careers towards the end of the year. People start making changes at this time, and the reason why is because Auckland has its summer during December, January, February, and March period. And this is when you have your huge holiday. If you are going to make a change, then you are going to be doing it in this period. Simply because a lot of people move out.

This is the worst time to have your apartment come up for rent, because you have got a lot of people moving out. People are not looking for apartments especially in November/December. You are likely to have vacancy periods where there are just more apartments on the market than needed.

Now, here we move into the complete opposite. When is it the best time? And it is simply the opposite reason.

As most of January, February, and March this is where people come into Auckland. This is when people are starting new jobs. This is where the university year starts. So this is where it is very hot. There are not enough apartments in Auckland and this is where the rents get driven up extremely high. So it is really important that your apartment is coming up for either renewal of a tenancy or coming up to be rented during this period.

As you can see the rest of the year for April through September, I have put in an orange or a tan color. This is because it is okay and it is not bad to be renting your apartment in this period. You are not going to get your peak rent, but it is not going to have that huge vacancy periods. You will get a good, solid rent. So, the key thing here is what people need to understand is if you have got a tenancy that is coming up in May. If you have got a tenancy that is finishing in November.

How do you get it to be coming up in this crucial green period? You use your tenancy, and you may put your tenants in November into a three month tenancy. If it is in July, then put them into a one, two, three, four, five, six month tenancy. This means it is coming up in this peak period. That way you can raise the rent, or if they decide to leave, you can put it on the market in the peak period.

Also, if you rent your apartment in February, what if the tenant only wants a six month period or a nine month period? If it is nine months, then you must refuse it. If it is six months then they should take it. In July, you may want to get another six month period so it comes back into February. It is really important that you try to align your tenancies in this crucial time where you are going to get maximum rent because there is maximum demand.

Now I hope that helps. Feel free to fire me an email if you want to ask any more questions. Anyway, Andrew Murray from the apartment specialists and talk to you soon.

Cheers.

Apartment Specialists Podcast No: 32

Summary:

When renting your Auckland apartment, there are factors that you have to consider like apartment presentation, terms and duration of rent and who your tenants will be. It is important to get it right so that you raise the value of the rent thereby raising the value of your apartment.

TRANSCRIPTION:

Andrew Murray from Apartment Specialists. Renting your Auckland apartment.

Now, this is done so badly in this industry. It is done badly by rental agents and people who are actually renting privately. And that is really, really, frustrating for me because when I come to sell an apartment that was under rented it effects the value hugely.

Now I don’t just mean if you’ve got a shoe box apartment or your apartment is a student apartment – or even if it’s an owner-occupier apartment or a very large apartment. Because if the rent is not getting – not what it should be – then I have to fix the value. I have a lot of international buyers who still buy very, very large apartments. And there are one or two who are looking for a capital gain. They are looking for all kinds of criteria that are different. And the returns they expect are so much different than the local market.

So there are still methods across the board. So what can – how can – I was thinking how can I help you guys sort of – give you a few tips in regards to getting this right. Now first of all, there are some things you would not actually think affects renting your apartment. A big thing is – a big misconception – is that you’ve got to furnish your apartment. Most owners think – it is better that you have your apartment with no furniture because most tenants turn up with their furniture. That is not actually the case.

There are so many international people – people from different cultures – you’ve got people who are just not going to lag around bringing furniture up to the 14th floor or 4th floor or where ever the apartment may be. What if the furniture does not fit in the apartment? A furnished apartment always gets more rent. And it always increases the value of the apartment.

Now I don’t mean you’ve got to buy the best of the best. You buy something that looks good. You can do a Kmart or Warehouse job. They have great and very durable furniture in there. I wished we had Ikea here – it would be perfect. When I went to the States and Australia that’s what they all use.

Furnish your apartment. It’s all about presentation. Get a professional photographer. Even if your rental agent doesn’t suggest this, you suggest it. There’s a guy I can use, flip me an email. It will cost you about $150 to 230 plus GST which is virtually nothing. It will put your apartment above all the rest.

The third one is how you rent your apartment at the time of the year. Okay, you want to be renting your apartment – if you can – for a year, from the time it is at the peak. So for example your peak rental period is the end of January through to the end of march. So you want to be renting your apartment each year at that time. If not, you know – have a long tenancy – that’s two to three years. Okay, So maybe if your apartment is out of sync with that you want maybe to fix a tenancy that matches up with that period. Maybe a four month fix now or something like that. So it comes into that period. Now that is very, very crucial. So ask your rental agent or flip me an email and I can explain it down further to you.

Now another one is your type of tenant. Now it’s not about being racist. It’s not about being you know fussy – either of those. Okay so who do you want into your apartment? Would you live with these people? Would you have them in your house as guests? And It’s not about being discriminant. It’s about who is going to look after your apartment. What demographic are you looking for? So, advertise through that demographic. So even if you are in a student complex – you can still go for a young couple – or something like that. It is all about the choices you make when looking into the applications. You don’t have to give your reasons. But make sure you do background checks. Make sure your agent does background checks. And you see those checks – so that you can make a choice for yourself.

And another one is if you are going to a rental agent, which I would advice, keep them accountable. Ask them what they do – what they do for the fee they charge you. Okay now there are so many rental agents out there. There’s hundreds of them and only a few who are really good ones. And I’ve recommended a lot of different apartment agents. Some have let me down which has been disappointing because it’s been a reflection on me. I don’t do rentals myself but I can happily refer you to some of the good ones out there.  If you want me to flip me an email to andrew@apartmentspecialists.co.nz and I can get you in touch and give you the advice that you need. But make sure you get the right rent for your apartment not just for you – not just for me when I come to sell it – but because you should be.

Thanks for that. Next time I’ll be talking about – if you choose to sell to your apartment and you get tenants – what happens to those tenants? Are you worried that they are going to leave? Are you worried that they stop paying their rent? What happens to the sales price and what should be happening and – how would you ensure that that’s not even a concern.

Cheers! Bye.

myth 3 rental companies charge auckland apartments

Apartment Specialists Podcast No: 20

Summary:

In this podcast, we will talk about another myth concerning rental companies. I will divulge their common methods and what you need to know about them!

TRANSCRIPTION:

Andrew Murray, Apartment Specialists. Myth number three on the Auckland apartment market. All rental companies charge the same – complete myth.

Now, what I come across most is basically, rental companies will charge between generally, 7% of your rent and 9% of your rent. That’s what most of the companies charge. The reason why one charges nine, and the other one charges seven in regards of service, I don’t really see any difference at all. Now what I don’t understand is – owners are paying 7-9% of their rent. So if that say $400 a week, that is –  I don’t know – around $36 a week to the rental manager, to look after their apartment. Now you times that by 10, that’s $360. Times it by another five, and that’s a year. So that’s a lot of money you’re paying to a rental manager.

So what I don’t understand is on top of that, a lot of the rental manager’s charge for all these other things. For example –  okay, they’re going to check your apartment. They’ll go and check your tenant. Now they should be checking your tenant in my opinion four times a year because tenants can do all kinds of damage to your apartment. You want that checked to make sure the tenant’s are looking after it. There’s no damage and they’re not having parties. All those kind of things. All the horror stories we hear – and I see quite often. Yet, some only do it twice a year. And then others I’ve come across haven’t even check it at all and have got no idea what is happening. Yet, you’re paying them for doing what? Just sitting there?

Now then, there’s all these other charges some companies will be charging for when they might have to do a call-out. So for example, maybe something needed to be done or fixed in the apartment. So they get called out to the apartment to see it – and they’ll charge the owner a call-out fee. Or when work needs to be done and say a plumber comes in and fixes it and that gets organized and there’s an invoice or whatever. They’ll then put a percentage on top of the invoice that they charge. Now, I just don’t understand the industry really here because it’s not really transparent. What are you paying that 7% or 9% of your rent for? Shouldn’t it be that to manage your apartment? And doesn’t all those responsibilities should come underneath it?

So really it’s finding – Now, I don’t do rental management. I’m not trying to get your business or anything. I’m just trying to educate you and knock out – okay what’s sort of happening here. And then look at the company that’s been going after you. Because, how is an owner supposed to know if they are being looked after? Or what other companies are doing or charging cause there’s some very good ones out there.

And so look at your statement, do you understand it? Is it very transparent? Do you know what you’re being charged? Do you think it’s fair? If you’ve got no idea, it’s no fault of yours. Send an email. Scan in an invoice to andrew@apartmentpecialists.co.nz and I’ll have a look at it and sort of give you an idea of what you’re being charged and what’s normal in the market and what’s above or below that. And obviously this is a service and that kind of thing which only you really know.

But yeah, look into it. See what you’ve been paying because you pay thousand dollars a year for the apartment to be managed. And if it’s not being done properly and you’re getting charged too much for no extra value or service, you’re being taken for a ride.

Anyway, I hope that’s given you some invisibility. Next week myth number four. And we will be talking about agent sharing commission which is conjunctional sales. So the myth is all agents make it easy for other agents to sell your apartment. And if they do, they share the commission equally.

I’ll talk to you next month. I think you’ll find this one quite interesting and have a good week.

Cheers!