- 1 November, 2014
- PROPERTY MANAGEMENT, RESIDENTIAL
- Tenants, Landlords, Market
The Key Government will want tenants who need and deserve a home. I believe the State House for life attitude is over.
The selling off of State homes will be welcomed as these are built to last of native timbers, are solid and provide opportunity for new owners as they are often nestled on full valuable sections. We may find the government realizing same in various areas.
The lower cost end of the rental market is experiencing a notable trend - over crowding, doubling up eg two families in one house and caravan on the back lawn. This creates a potential risk to the property, hence your insurance may be in jeopardy.
Your tenancy agreement should always specify maximum numbers of people (occupants) and should be monitored regularly with action taken. We are seeing more and more of this.
If a tenant is behind in their rent follow the due process because there are tenants out there who can pay regularly, so don’t be afraid of losing poor performing tenants. Experience shows poor paying tenants not being managed only create bigger problems in the long run for all concerned.
Regular inspections are worth their weight in gold, and are essential. A lot can happen in 6 months.
Many domestic insurance policies don’t provide cover for damages caused to the property as a result of criminal acts eg. P Labs. It’s advisable to have a good read of your insurance policy and associated schedules, you’re better to be safe than sorry.
Migration in the past 12 months has been stronger than any forecasters predictions. Over 40,000 to New Zealand with Auckland region 24,000. More people are staying in New Zealand, some returning from Australia and more and more arrivals from India, China and Europe.
There are fewer families arriving with the majority of immigrants now being in the 15 to 30 age group, which has seen a huge increase in student visas.
The Central Auckland rental market will be very active as many of these students want to live where they study – we could see more significant increases in rent in the Central City remembering many of these students are backed by wealthy parents back in their home country.
Interest rate rises will take a timely pause until March 2015 due to inflation pressure being less than earlier predicted and moderate wage inflation.
Source: Keith Niederer – LJ Hooker General Manager