Archive for April, 2019

Property Management Advice from Sabine Slade

My name is Sabine Slade and I live with my husband in Kawerau. I came to New Zealand 26 years ago from Berlin, Germany. We own a number of investment properties throughout the Bay of Plenty which I manage myself.  A couple of years ago, other investors started to approach me about their properties and I now manage investment properties for others as well.

I find that being a Property Manager takes patience and the ability to deal with many different personality types, which is a challenge I thrive on.

Tips on looking for new tenants

I locate tenants through a mixture of advertising in the local papers and online via Trade Me.

Interested parties fill out an application form that includes a privacy waiver clause so that I can conduct full reference and credit checks. Sometimes searching for a new tenant can be an adventure, I have seen people give false details on the application form about their employment, credit rating or where they live. I often will have a browse on the internet as part of the checks for my clients. Social media sites can be helpful as well as the Tenancy Information New Zealand (T.I.N.Z) database.

From time to time smaller towns can have problems with unemployment and gang related issues, so every person who wants to move into a property I manage, has to fill out an application form, thus eliminating the chance that the well dressed, well-spoken and mannered working mother, gets the house and then has her gang affiliated partner moving in with her.  This may sound onerous, however there are usually fewer people looking to rent in smaller towns compared to the larger cities, so a strict vetting process  is much preferable than dealing with a bad tenant later on.

Given the size of the market I do not charge a letting fee, however I ask a full 4 week bond.  Once a tenant is found, the key word for retention is service.

Effective property management practices

When I ask prospective tenants why they are moving, the response many times was that the landlord is “slack”. The tenants had problems such as a stove or power point not working, or a leaking roof, notified the Landlord and nothing happened.   I try to solve any issues within 24 hours either by organizing tradespeople to visit and quote for the bigger jobs or we simply perform repairs ourselves if it is a smaller issue such as a dripping tap. This not only ensures a very positive tenant / landlord relationship but tenants will make more effort to keep the place well looked after. Saving money is good, but not at the expense of your tenants.

However quite often the tenants do not ring me with problems, so regular 3 monthly inspections are important. They keep me in contact with the tenant and also to keep up with any maintenance or repair issues.

I check the rents when they are due. If a payment is missed, I ring or visit the tenant letting them know that the rent was not paid and find out how they plan on catching up.
99% of the time they catch up when the next rent payment is due. If this does not happen I will give them a 14 day letter to remedy which is then followed by an application to the Tenancy Tribunal. In bigger markets property managers are stricter, however it can pay to show some flexibility to an otherwise very good tenant – at least for the first occurrence.

As a rental property owner it certainly helps if you have some sort of cash cushion. More houses means more liabilities and you should be in the position to replace a large ticket item like hot water cylinder or wood burner / heat pump if anything goes wrong. We experienced it ourselves when we wanted to insulate one of our rentals and the company giving the quote found several leaking spots in the roof, which had to be fixed before they would install the insulation. It could not be repaired and we had to re-roof the house at a cost of $12000 when we wanted to only spend $2500 on insulation.

Lastly I want to touch on maintenance. Often it can be tempting for an investors to let maintenance slide, however with a smaller buyer pool that has choice, properties in good condition will be vacant for shorter periods and attract better quality tenants who will stay longer.

April 16 2019 | Investments and Positive Relationships and Property Management and Tenants | No Comments »

Investment advice and tips

You become an investor  once you put your cash into items that could generate revenue or grow in importance. The typical intention would be to earn at the least an after tax return more than inflation’s pace. Becoming a buyer also requires a degree of chance. Typically, the bigger the bigger the risk, the return.

Shares? Securities? Residence? Term deposits?

Ask yourself these questions when choosing what to spend your money on:

Duration: How long are you wanting to speculate for?

Earnings: would you like revenue or growth?

Liquidity: do you want to be able to truly get your money easily?

Risk: understanding your own personal attitude to risk and Understanding the risk involved in different kinds of expenditure.

You can spend ‘specifically’ through a bank (period remains), share broker (stocks and securities), real estate broker (house) or other agents. Should you commit right in stocks, securities or house, you’ll have to be well informed regarding real estate arena or the sharemarket, and also the enterprise.

You can also devote ‘indirectly’ by way of a managed fund. In a managed account (or device trust), your money is pooled with that of additional shareholders, plus a professional fund manager invests it in a variety of purchases for you.

 

Top tips for investing

Before you step into any investment decision, there are some significant guidelines you must follow:

Set:

Determine what it’s that you will be currently looking to obtain. Where do wish to be at some time in the foreseeable future? What is the last consequence that you want from your investments and what is your schedule? Think of debt – is investing the best alternative for you today? Could you be better off using your cash to pay off high -interest debt (e.g. Charge card, hire purchase), or even to reduce your mortgage?

Recognize your chance report:

You need to know what kind of buyer you’re – essentially, how much cash are you prepared to lose? Just how much volatility (good and the bad) are you able to accept? To work your entrepreneur variety out, use our investment manager.

Discover how you want to devote your money:

What mix of investments fits your buyer kind? Ties, shares, property, bank remains? Do you want to invest right oneself or employ managed finances? Your investment planner can help here.
Research different companies’ expense alternatives: discover which corporations fit your kind, if you’re going to commit immediately in a business. Do they offer the type of assets you are after? What are return for every investment’s premiums? What’s the level of danger linked to the return?
Research the companies themselves: exactly what does the business do? What areas is the firm in? Who’s working the organization? Have they actually been declared bankrupt? How may be the organization work? Does the board have separate owners? Has got the corporation done recently – is there a constant performance with time?

Obtain the correct assistance:

Check around for an Authorised Financial Adviser (AFA) who you have confidence in. Sanctioned Financial Consultants should tell you (in a written disclosure statement) how they are settled and also the impact that could have about the advice they provide you with. Find about receiving investment advice more out.

Do your preparation:

Research, compare anything – or get someone to do this for you. See the enterprise parts of the paper, get online, speak to bank boss, your advisor, or accountant. We suggest in addition you read any files, such as /or prospectus and the expense statement, referring to the investment you’re currently considering.

Distribute your chance:

Don’t placed all your eggs in a single basket Whilst The saying goes. Distribute your risk around various companies and different options. For example, if you should be contemplating high-risk ventures, you are able to balance your threat with different investments in income and securities bank deposits or lower-risk regions.

 

 

April 16 2019 | Generating Income and Investments | No Comments »