FAQ

Frequently Asked Questions

Whether you’re about to buy your first investment property or you already own several, chances are you still have a handful of questions regarding the management of your property. We’ve answered some of the more common questions we get asked below.
If you would like to find out more about having Prime Property NZ take care of the management of your investment property, please contact us via our contact us

How long does it take to rent out my property?

The demand for rental properties in Auckland is traditionally strong. But this is always a hard question to answer as it is dependent on a number of facts, the better the property is presented, the more realistic the rental amount you are asking and the level of professionalism of the property manager will determine the time frame the property will take to rent out.

We do our best to match the asking rent to the market, but it can be worth considering reviewing asking rent, if the property is not receiving the interest it should. It can be better to drop the rent by $10 to get a tenant now rather than endure a long vacancy. For instance, if your rent is $260 per week, it will take 6 months at $10 extra each week to recover 1 weeks’ extra vacancy. If your rent is $500 per week, it will take a year to recover just 1weeks’ extra vacancy for the sake of $10.

There are a number of things that can lift the appeal of a property. We are happy to discuss cost effective ways of making your property more rentable and/or able to fetch a higher rental return.

What is the likely rental amount for my property?

We will advise you of a ‘fair market rental’ which will be a figure based on what similar properties are currently renting for in your area.

How do you assess tenants for my property?

If after showing your property, they are interested in renting it, tenants are required to fill out a comprehensive application form which includes details of their personal and working situations and current renting/living arrangements. The application also gives us the authority to check personal and business references, previous landlord references, permission to check with online tenant referencing agencies and to do a credit check. Once we have all the information needed and we are 100% comfortable, we will select the most suitable tenants for your property.

What about bonds?

We require a minimum of 3 weeks’ rent. We believe this provides the tenant a financial interest in ensuring they look after your property. Furthermore, we believe this provides good security should anything go wrong during the tenancy. All bonds are lodged with the Department of Housing New Zealand within the legal timeframe.

What is a periodic tenancy?

A periodic tenancy is what you would refer to as an open ended tenancy. There is no fixed end period, the tenant is required to give 21 days’ notice in writing, and they can do this at any time. An owner is required to give the tenant a minimum of 90 days’ notice to vacate. Except 42 days’ notice may be given when the owner or ‘close’ relative intends to occupy the property or if the property is for sale and notice is given on the sale contract becoming unconditional.

What is a fixed term tenancy?

A fixed term tenancy is a specified minimum timeframe that has been agreed for the tenant to stay in the property. This was agreed to, upon signing the tenancy agreement. You cannot give notice to terminate a fixed term tenancy, even if the property is sold. They can only be terminated if an agreement is reached between the parties.

Periodic or Fixed Term Tenancies?

We offer both Fixed Term and Periodic Tenancies as situations of each Landlord and Tenant vary. Fixed Term tenancies have a start and end date then automatically convert to a periodic tenancy if not extended by mutual agreement. We generally aim for a 6 month or 12 month Fixed Term Tenancy.

How often can we increase the Rent?

Rent increases are governed by the Residential Tenancies Act and can only be increased once every 180 days, in addition to this, 60 days written notice must be provided to the tenant prior to the date the new rent comes into effect.

Most people don’t realise rent can be reviewed during fixed-term tenancies. At Prime Property NZ we ensure we can review rents, so rent is reviewed at inspection times. Rent reviews do not always result in an increase in the rent. ‘Review’ is just that, we take another look to see how the property compares with others in the market. If you would like to know if you are getting market rent for your properties, contact us for your free rental appraisal.

What happens if the tenant misses a rent payment?

Prime Property NZ operates the latest computer systems that monitor rent on a daily basis. If a tenant misses a payment, we operate a no tolerance policy. We will contact the tenant via email/text/phone and send a 14 Day Notice to Remedy. If they fail to pay the rent then Prime Property NZ will take them to the Tenancy Tribunal. If a tenant persistently misses rent payments then their tenancy will be terminated.

What happens if tenants owe money when they leave?

If a tenant leaves owing money there are several courses of action we can take. Assuming the tenant has been asked to pay and they have not, the first, and simplest option is to deduct it from the bond.
If that is not sufficient for any reason, the second option is to apply to Tenancy Tribunal. If the tenant is ordered to pay, we will make arrangements with them to do so. Failing this, we can help you seek an Order of Examination or other orders through the Courts, and a Warrant to Arrest if they still do not comply. This is fairly serious, and is very rarely needed. We can also arrange a debt collection agency to recover the debt.

We are so confident of our tenant selection and rent monitoring we will attend the Tenancy Tribunal for FREE to sort out tenancy issues, so you get the money you are owed.

One of the advantages of Landlord Insurance, this covers you for loss of rent due to a tenant vacating owing money.

How do water charges work?

Watercare invoices incorporate 3 cost centres to make up the final bill. Where the property has its own individual water meter:
The tenant is responsible for the ‘Volumetric charges’ – ‘Water’ charges and ‘Wastewater’ charges.
The 3rd cost centre is the ‘Fixed charges’, this is a charge based on an annual cost divided by the number of days the account covers, the owner is responsible for paying this portion of the account.
Prime Property NZ has all Watercare accounts forwarded directly to themselves. We then pay the full account to Watercare on behalf of the owner to ensure the account is paid on time and no penalty charges are incurred for late payment.

Prime Property NZ sends a copy of the account to the tenant along with an invoice to reimburse us and the owner for their portion. All tenant charges and payments are tracked to ensure tenants pay their water rates.

How do I get paid?

Rent is paid to us by automatic payment from the tenant, this is monitored daily to ensure tenants meet their obligations. We forward the rent received to you within the first two business days of the new month, with our management fee deducted and any other applicable fees. We disburse funds directly into your nominated bank account. We send you a statement and attach scanned copies of any invoices we have paid on your behalf.

How often do you conduct property inspections?

We routinely inspect your property 3 times per year. A letter, report and photos (if appropriate) are sent out to you after each inspection. We conduct them for 3 main reasons:

  • The tenant knows we are visiting regularly
  • We ensure the house is being looked after
  • We take notice of any ongoing or gradual maintenance issues

We also inspect at the start and end of each tenancy.

How do you deal with maintenance issues?

We will arrange for all repairs and maintenance as required, up to an amount specified by you. If you have your own preferred contractors, we are happy to work with them also. However in the case of urgent after-hours repairs which are required to either preserve the original condition of the property or to provide essential services for the tenant. We will commission repair work without prior reference to the property owner if necessary.

Can I arrange my own maintenance?

Yes. If you want to complete your own maintenance you can as long as it is completed within a reasonable time frame so that we can keep the tenant happy and limit any further potential damage to your investment property. However, Prime Property NZ has its own tradespeople that we have formed relationships with over many years and most Landlords use this service as the rates are reasonable and service is immediate.

Can you pay my Council Rates, Water Rates, Body Corp Fees and Insurance Premiums?

Yes, please advise us in writing and redirect all invoices to our PO Box.

Do you provide me with an End of Year Summary Statement for my Income Tax Return?

Yes, we email you an end of year summary at the end of the financial year, you do not need to request this service, it is part of our service to you.

Do I need to let my insurance company know the property is rented?

Yes! You need to let your insurance company know if the use of your property has changed. Make sure they cover you for ‘landlord’s contents’ – things like carpet, curtains, stoves. Normally these would be covered by your contents policy if you lived in the property. A tenants contents policy will not cover your goods.

There are several other extensions to policies some insurance companies offer, such as ‘loss of rent’ should your property need extensive work (e.g. after fire or flood) and is uninhabitable during that time. We recommend ‘glass and sanitary fixtures’ extension to cover accidental breakage of windows, toilets, basins and so on. Not all companies offer all of these policies so shop around. There are policies to cover damage by tenants and many more. We recommend you talk to an insurance advisor to work out what you require.

Let your property manager know what policies you have so they handle claims appropriately, particularly if you are not contactable for a period of time, such as travelling abroad. It is very important that properties are inspected regularly so any insurance claims are covered. Check your fine print on the insurance policy, most insurance companies require regular routine inspections. Discuss this with your property manager.

Do I need Landlord Protection Insurance?

Landlord Protection Insurance is not compulsory for your property, however we strongly advise that every Landlord purchases specific Landlord Protection Insurance for their property.
We recommend Real Landlord Insurance which covers you in the event of:

  • loss or damage to the property or contents caused by malicious damage or theft by the tenant and/ or premises left un-tenantable
  • loss of rent following a tenant vacating without the required notice
  • loss of rent following eviction for non-payment of rent
  • loss of rent due to prevention of access, or failure of public utilities

Be wary of in-house policies offered by the Property Management Company!

It is becoming an increasingly common practice for property management companies to offer their own ‘in house’ rent insurance policy. Please be aware that for the cost of what they charge, their policy cover is actually quite limited. Most of the time, paying for an independent Landlord Protection Policy which is underwritten by a major insurance company is by the far the better option.

Is the rent guaranteed?

We market properties with a fair rental amount for the location, features and condition of the property. We check tenants carefully for their ability and willingness to pay the asking rent.
However, sometimes a change of circumstances causes problems in rent payments. We keep a close eye on rent coming in and follow up as soon as a rental payment is late with a phone call/text message/email, and a 14-day-letter to remedy if that doesn’t do the trick. Where required, we apply to the Tenancy Tribunal.

Research shows that property managers such as Prime Property NZ significantly decrease investment risk and improve returns.

However rent is not guaranteed.

Do tenants need insurance?

We highly recommend all tenants have contents insurance with ‘public liability’ cover. This insures tenant’s belongings should there be a burst pipe or some other building disaster (the landlords cover is unlikely to replace tenants belongings). If the tenant accidentally causes damage to the landlord’s property (e.g. if they backed their car into a fence, overflow the bath, or a cooking disaster causes a kitchen fire) they may be covered. Without insurance cover, the landlord’s insurance company could try to recover the costs from the tenant. The cost of insurance is a small price compared to rebuilding a house.

We make sure all our tenants know about insurance that will cover them in these instances when we sign their tenancy agreements. However, under current New Zealand tenancy law it is not compulsory for tenants to have insurance, but it is considered very wise to have it.

Does the location of the property management office affect the ability to manage my property?

With almost 99% of all our prospective tenants using the internet to find homes online and all of our current tenants paying electronically, it’s clear that an agent’s location is a concern of the past. Because of this we can quickly and easily rent out properties in a very large geographic area. We can also very quickly assess rents in any given area to determine what the right amount of rent is for a particular property.

Is Prime Property NZ the cheapest property management business in the area?

No, however we do believe we are the Best property management business in Auckland focused on providing a high level of service unsurpassed in the industry. We provide a full service and have found that charging a discount price dictates a lower level of service, therefore we charge a competitive rate commensurate with the high level of service we provide to our clients. Low fees can cost, we charge a competitive market rate which ensures your asset is well cared for.

I want to move back into my property – what do I need to do?

If you decide to move back into your property, contact us as soon as possible. By law, tenants with a periodic tenancy must have 42 days (6 weeks) notice if an owner, or a member of their close family, want to move into the property. Please note if you own the property in the name of a company or trust you need to give 90 days’ notice – an entity does not have family! The more notice you can give us, the better.

Please note fixed term tenancies cannot be terminated by notice, so let us know if you are considering returning to your house so we can structure our tenancy agreements appropriately.

Do you give advice?

Yes – we give our opinions. We can recommend a course of action, but we do not make you take it. We know investors need to follow their own path, and what works for one person may not work for another. You are welcome to get a second opinion before acting on our recommendations and do whatever it takes to let you sleep soundly at night. Come in for a chat or give us a call. We’ll be happy to bounce some ideas around. But please remember, our advice are our opinions based on our knowledge and experience, your choices are your responsibility and you should be sure of any actions you choose to take.

What if I want to sell my property, can Prime Property NZ help?

Absolutely. We work with a variety of agents in different areas, thus we have the option to choose the best available agent in any given area. Working with salespeople we know makes the sale process far easier. We can make sure the tenants are as helpful as possible, that all rights and responsibilities under the Residential Tenancies Act 1986 act are adhered to, and the transition goes as smoothly as possible.

How do I change my property over to Prime Property NZ if it is being managed by another property management company?

All you need to do is contact us, we will discuss the situation with you, and we will do the rest. We will need our Management Authority form completed, then we will contact your current property manager, the tenant and we organise the transition. There is no disturbance to your tenant and the change couldn’t be easier.
Don’t hesitate, call today.

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