When the Bulb Goes Out.

Light bulbs. Ah, what a treasure. Only noticed when they are not working, these tireless soldiers of the light do their duty to guide our path and protect us from the perils of eye strain. And like most soldiers, some will fail in their duty and die.

All lights should be working at the start of a tenancy. There is a couple of tricks for keeping these little soldiers going as long as possible.

First: Check the bulb isn't too hot for the holder. Often shades will have "Max 60w" or similar printed on them. Go over this wattage, and melt the shade. Expensive and dangerous, so don't do it. As a general rule, the smaller the fitting around the bulb, the cooler the bulb must be. (If you don't already know, generally, the more watts equals more heat being released. LED bulbs are cooler than compact fluorescent bulbs, which are cooler than incandescent, which are cooler than halogen).

Second: Make the light appropriate for the task. A 45 watt bulb will be fine over the toilet, but not in the middle of a large lounge. A chandelier will likely need lower wattage as the number of lights compensate for watts.

Third: Recessed fittings need special reflector bulbs. These are more expensive, but will last longer. They don't look glamorous at all when most of the bulbs are out.

Fourth: Halogen bulbs need special care. Do not touch them with your skin. The oil from your fingers will cause hot spots, and these special soldiers fall faster with heat. If you have a choice of halogen or regular bulbs in a light fitting, go with regular. Halogens are not great in rentals - the bulbs cost a lot and last no time at all, annoying your tenants.

Fifth: Pay for quality. I've seen 89c bulbs come apart, leaving the metal base in the light socket, and the glass bulb smashed to pieces on the floor. It's hazardous work to get the metal bit out of the socket, never mind the broken glass underfoot. Go with a reputable brand and save electrician's call outs.

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Super Speedy Repairs and Maintenance

One of my favourite things about property management is how quickly we can get work done other people have to wait for. Yes, that's right. We don't have to wait for a plumber or electrician, we call, and almost before we hang up the phone, the job's done.

Why is this the case? There are a number of reasons, and some are simple for you to do too.

1. We make it easy for them to access the property. We have a clear protocol of how they are to contact the tenants to make it simple and easy for the trades person, and what to do if the tenant can't meet them. There is no mucking around waiting until some vague future date where the stars align and it might be convenient for them, the landlord, and the tenant.

2. We give them a lot of work. Only a fool would bite the hand that feeds them, and we feed the good ones a lot. Not an option for the average property investor. If you are wondering why you are waiting on a tradie, odds are they're working on one of our properties. Sorry.

3. We don't waste their time with pointless quoting. If the job needs doing, it gets done. Why waste a trades persons precious time getting them to submit quotes to save $5 on a $300 job? If you have tradespeople you trust, and you show them respect, you will save yourself money by the speed and efficiency with which they work.

4. We don't second guess them. Don't get me wrong, if I know more than the tradie, they don't do the job. Hire people who are skilled at what they do and are empowered to give you the best solution. Micromanage them at your peril - that's how jobs go very very bad. Stick to what you know best and let them do what they do best.

5. We pay tradies promptly. The longest any trades person has to wait for payment is a fortnight for us - it's our company policy. Our average is just 3 days. Others take more than 25 days to pay. That's a long time for tradies to cover their wages and materials. If you were a trades person, would you rather work for someone who will pay you this week, or next month?

So, no surprise we get the best tradespeople in record time to sort out problems at your property. Because we choose the best, we are sometimes surprised with the solutions they come up with - often better and more cost effective than we could have requested. Perfect.

Going overseas on a holiday?

Have rental properties and thinking of going out of the country for more than 21days? Think again!

With recent amendments to the Residential Tenancies Act 1986, Section (16A) states that ‘Landlord must have an agent if out of New Zealand for longer than 21 consecutive days’.

So thinking of taking that nice trip to the Mediterranean for 6 weeks or going on a picturesque one month cruise in the Fjords in Norway and hoping that by managing your rental properties through email while you’re away will be fine? Think again! With recent changes to the act you have to now legally appoint an agent in New Zealand to manage your property while you are away. So what is an agent? An agent is someone who the owner appoints to manage the property; it can be either a property manager or family and friends.

The risk with using family and friends would be for example if something went wrong, would they have the right contacts and know about on how to handle the situation and fix it? If the tenants were not paying rent would they know their legalities in how to deal with rent arrears? With inspections do they know that they can’t just walk inside the property without prior consent from the tenants as this could be a 3 month jail sentence?

We have recently taken on board a property where the owners are going overseas for much longer than 21 days and were going to just manage the property via email to keep in touch with their tenants and arrange any maintenance required. They were quite shocked to realise they had to legally appoint an agent in New Zealand while they were away. They quickly signed the management authority and placed the property in our hands. This is just one of the many new amendments made to the Residential Tenancies Act some private landlords are not aware of. I recommend all landlords update their knowledge on the recent changes to the Act so they know they are doing everything right in managing their properties.

Appointing a property manager takes all the hassle out of your property and keeps you stress free and gives peace of mind whilst you're overseas. So know of anyone going overseas who have rental properties? Direct them to us and we can deal with the rest!

Where to Dispose of Household Goods

Occasionally, you'll have a property full of furniture and house hold items, only problem being, you don't want it. I'm going to assume that you have the right to dispose of it (ie it doesn't belong to a tenant or is a hire purchase). Here are some options for disposing of goods so they can do a bit more good in the world before they are junked:
1. Call an antique dealer or second hand trader. They may take the lot, or pick and choose. They (hopefully) will pay you. Expect to get relatively less for a house-lot than for individual items of value.
2. Auction items on Trademe. Try a $1 reserve and watch them go. You might want to make it buyer pick-up to save you a lot of running around. Great if you have a camera, internet connection, and a bit of time to set it up and let the auctions run.
3. Charity stores like Salvation Army may be interested. Be aware, they are rather fussy these days and will not take junk. They will pick up if you have a number of items, they won't pay for them.
4. New Migrant and Refugee Services may want furniture and household goods. They will pick up, and they won't pay for items.
5. Recycling centres at landfills may take all kinds of things. Some pick up, and you won't get paid.
6. Give away to friends, family, and starving students. They may or may not pay you for it.
7. Talk to specific collectors of any special items eg film buffs for old movie equipment and reels.
8. Archives or Museums for any items of historical interests. You may be surprised what is interesting to people, like old letters and clothes. Before you biff, ask if they want to look at it.
9. Schools, hospitals, pre-schools, and anywhere with a waiting room may appreciate books and magazines, and toys. You will likely have to drop them off.
10. Have a garage sale. You may make some money off this. Do put up signage about a week beforehand, and maybe put an ad in the paper.
11. Food can go to foodbanks. You might need to drop off, or use bins at supermarkets.
12. Blankets and bedding, and newspaper can go to SPCA. You may need to drop off or use bins at recycling centres.
13. Old carpets and rugs may please a gardener - they make good mulch and weed mat. They might pick up.
14. Metal recyclers or waste exchanges will take electronic goods (like Earthlink). You might get paid for them if the metal content is sufficiently valuable.
15. Take what ever is left over to the tip. There are fees for this, and more for items like car tyres. Hopefully this is your last option and is only for a very small pile of what ever cannot be re-homed elsewhere.

5 tips for Tenancy Tribunal success

Tribunal.  The very word strikes fear into most landlords and they'll do anything they can to avoid it.  They resign themselves to losing hundreds or thousands of dollars and put it down to ‘learning.‘  It doesn’t need to be that way.  Savvy landlords know that with a little bit of effort, lost rent, costs for cleaning, damages and the like can be recovered (albeit slowly in some cases) if you face your fears and go to Tribunal.  

Here are out 5 tips for Tenancy Tribunal success:

1. Call DBH Tenancy Services (0800 83 62 62).  Talk through your situation with them in an unbiased and factual manner so you get the right advice.  You don’t want to become unstuck when the adjudicator cuts through the bull and combines the facts with the law.
2. If you are applying for repayment of rent arrears, ALWAYS tick the box that says you are seeking to end the Tenancy.  This sends the message that you are serious and gives any consequential clauses some teeth.
3. Preparation, preparation, preparation.  Get to know the Residential Tenancies Act 1984 (and amendments).  It’s a big document, so depending on what you are claiming for at least brush up on the relevant sections.  Get all your paperwork together and try to predict what the tenant will counter argue.
4. Take three copies of everything that you are submitting as evidence – one for the court, one for the tenant and one for yourself.
5. If you have been successful and the Tribunal has awarded you money, strike while the iron is hot.  Talk to the tenant at the hearing and arrange payment.  If they are unable to pay the whole amount immediately, set out a payment plan and give them a deposit slip to pay the money into your account.

Of course, the best way to avoid all of this is through rigorous tenant selection and management.  As the old saying goes, ‘an ounce of prevention is worth a pound of cure’ and although sometimes things still go wrong you stand a better chance of a smooth tenancy if the tenants have had their references, tribunal history and credit checked out. 

Contact us and take advantage of our Tenant Selection Guarantee.

No doubt Tenancy Tribunal can be a daunting prospect if you have never been to it, but as landlords we need to set the example and send the message to tenants that they can’t get away with murder.  Especially if it ruins your carpet.

Does your property manager know to ask you?

This week I’ve had a potential client who was saved from paying way too much for an illegal house conversion. They were considering buying a house which had been converted into two flats, and wanted us to come do a rental appraisal to check the rental figure quoted was indeed 'on the money'. My first question was "does the council know it is two flats?". "I don't know," said the potential investor, "where can I find out?". A quick trip to the council buildings had them armed with what they needed to know. Unfortunately, the council did know about it, and they were not happy at all. If the investor bought it, they would need to bring it up to spec, and it wouldn't be cheap to do so.

They could have still tried to buy the property at a fair price and do the work needed, but as ‘low maintenance’ was one of their selection criteria, they walked away. I’m glad they knew themselves well enough to do that. We could have handled a project like that for them, we have before, but they knew this would not be their best introduction to investment property.

I wonder if the person who does buy that house/those flats knows what they are getting themselves in for. Under the changes to the Residential Tenancies Act (RTA) in force from 1 October 2010, the property needs to 'comply with all requirements in respect of buildings, health, and safety under any enactment so far as they apply to the premises'. Without fire-proofing between the flats, it can't be rented as two separate dwellings. The owner could be fined exemplary damages of up to $3000 under the RTA. If the worst case scenario happened, the RTA would be the least of their worries, make no mistake.