Between evolving legislation, soaring house prices and more New Zealanders renting than ever before, residential property investors have entered unchartered territory. The Government’s response has been to drive the industry towards a more professional environment. The 2020 changes to the Residential Tenancies Act (RTA) bolstered this effort with a notable rise in penalties for non-compliance. The age of hands-off property management is pretty much over.
So, what’s the best way to navigate this new, increasingly complex industry?
The first step every investor should take is to gain an in-depth understanding of their obligations as a property owner. The next recommendation is to add an expert to your team and engage a professional property manager.
Here are a few of the key benefits of working with a property manager:
One of the top takeaways for property investors from the Residential Tenancies Amendment Act 2020 (RTAA) is the importance of choosing the right tenant for your property.
With restrictions put in place for how and when tenancy agreements can be ended, it’s essential that care is taken during the application process. A property manager has experience completing checks on prospective tenants, as well as the time and resource available to do so.
At Quinovic, we complete a minimum of four checks before approving an application.
These checks usually include:
In the past twelve months, we’ve seen new legislation roll out as part of the Healthy Homes Standards and the RTAA. The pace at which laws are being passed is unprecedented in the New Zealand rental industry.
If there is a move to regulate the industry over the next few years, we can anticipate even more changes.
At Quinovic, it is our job to keep a finger on the pulse of the industry.
We have specialist knowledge of all relevant laws, how they’ve changed, and how they impact both property investors and their tenants. With our vast experience and connections to local tradespeople, we also supply professional recommendations on the best way to comply with these laws. Working with a property manager is a great way to guarantee compliance. After all, you don’t know what you don’t know.
The RTAA had a strong response from property investors across the country.
One of the most commonly referenced impacts was the feeling of uncertainty for owners. Uncertainty over how long tenancies might last, when tenants will give notice, and what minor changes property owners may need to approve. Working with a property manager is an effective way to mitigate the complexity and stress of unexpected situations.
A property manager takes responsibility for finding new tenants when notice is given, handling maintenance requests, regularly inspecting the property, and managing day-to-day communications. This can save you the time and stress that is often involved with managing a rental property, and ensure your tenants receive prompt responses and the best possible experience.
After all, that’s why we’re here - to provide the best rental experience for all.
Need assistance navigating new legislation? Ask Quinovic.
