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Frequently Asked Questions
Helpful Property Management Information For Landlords
What Rental am I likely to Achieve?
As specialist property managers, Allen Realty offers a free service to clients which helps confirm the expected weekly rental for properties you are looking to purchase. Before buying achieve peace of mind by phoning us for a second opinion. Irrespective of which agent you are buying through, (remember we're specialist property managers not sales agents) just contact us with the property details, and because we manage property Auckland wide from Whangaparaoa to Papakura, we will be able to advise you.
We know the Auckland locations where property rents quickly and we know the problem areas. We also know the characteristics which make property more tenant-able. Rentals fluctuate according to supply and demand, economic factors and seasonality. As ytour property management company, we'll check current, comparable properties, make adjustments for condition and size and then give you our best advice. This level of property management detail puts us ahead of others.
Our property management team is constantly evaluating the rental market to ensure your property is offered at the market rate given conditions at the time. Rent reviews are carried out during inspections and six months from the last rent increase.
How often do we carry our rent reviews and can I be consulted?
The Residential Tenancies Act allows for rents to be increased every 6 months as long as the tenancy agreement provides for an increase. We carry out property rent reviews on all properties on most inspections as well as on the 6 month anniversary of the date of the agreement or the last increase. If a rent isn't increased during a review it is then scheduled to be reviewed again 3 months later.
Clients can have input in to rent reviews at your request and can be notified in advance of any rent increases as the reviews are carried out.
Can we take over existing properties with existing tenants currently managed by other individuals or professionals?
Yes. Allen Realty often takes over the management of properties already being managed by private individuals and other agents who may not be providing an appropriate service.
And we are expert property management problem solvers! If you would like Allen Realty to assist you by managing an already tenanted and or managed property we will do all the hard work so you can relax. We will contact current property managers for all legal documentation that we require in order to effectively take over the management. We will endeavour to inspect all new properties within the first two weeks of management in order to asses any outstanding maintenance issues and carry out rent reviews to ensure that the most competitive market rents are being obtained.
Renovations, Repairs and Maintenance - Should I Spend $$$$$$?
Allen Realty uses a variety of contractors who are reliable, consistent, and offer value for money. Quotes can be obtained for most maintenance. Clients can also stipulate a maintenance spending limit or choose to have no maintenance carried out without their approval. In this case clients will be contacted for all maintenance issues.
The types of renovations, repairs and maintenance that should be carried out can generally be classified in to urgent, short term and long term maintenance. Generally urgent and short term issues are those day to days issues which are essential for health and safety and to comply with provisions of the residential tenancies Act.
Long term issues are issues that are not urgent and clients can address and plan for, at some stage down the line, more often than not between tenancies. These issues are generally communicated to clients after inspections. Addressing these issues makes the property more tenantable and often improves the likely weekly rental. These might include replacing vinyl and carpet which is damaged and looks unsightly, repainting in attractive colours or patching a wall or room.
Our flexible property management service allows clients to have an agreement with us in advance with regards to who organises what maintenance when it is necessary. This means you will always know where you stand and you will not have unnecessary costs that you were unaware of. Communication is the key.
Interior Décor which optimises rent and Saves you $$$$$ Paint, Curtains, Carpet - What materials are best?
Paint - If you want to own or do own multiple properties we suggest to reduce costs, you use the same colour paint on all your properties, both inside and out.
We suggest a neutral colour such as 10B/15 also known as Pearl Lustre. This saves the hassle of keeping and looking up records for each property about what colour and paint you have used. Also, it allows your repairs to be cost effective, since you can paint just one wall, if that's all that's needed. A colour like cream also does not date like some colours do, and it is not offensive to anyone. Also it looks good with a wide variety of furnishings, and can often make a small space seem larger, and a dark space seem lighter.
Curtains-choose neutral colour curtains also as these won't clash with a tenant's possessions, and neutrals tend to set rooms off better. Choose a reasonable quality thermal lined fabric, or pre-made drapes which tend to be cost effective. Note that most of these can not be easily machine washed. Supplying expensive drapes is not a guarantee of higher rents or longer lasting quality. Net curtains are important to tenants for privacy and security reasons, especially in bedrooms.
Carpet - choose a darker coloured carpet for rental properties, as experience has shown that the pale colours show marks more, and are harder to clean over the long term.
Depending on the property, it is possible to use second hand carpet, especially commercial carpet, is an effective way to keep costs contained, and keep your carpets looking good over the long term. The right carpet can turn a little used rumpus room into a well utilised extra bedroom, improving the rental return at the same time.
Do you have your own Tenancy Agreement?
Yes. Allen Realty's Tenancy Agreement is the result of many years research into what works best for the Landlord. We've kept it as straight forward as possible, so it's easy to understand for both parties. Some important clauses that are standard are "no animals without landlords permission", "tenants are to have the carpets commercially cleaned when their tenancy expires" , and "specified limits on the numbers of occupants". These unique property management clauses are what we can advise you on.
Allen Realty hand picks our tenants. All prospective tenants must make an application on the form we provide and undergo a comprehensive tenant selection process including but not limited to credit checks, landlord references, employment references and Tenancy Tribunal database checks. Photographic proof of identity is also required so we can be sure who we are renting the property to. This offers clients peace of mind as we work every day finding the right tenant for your property.
What type of tenancies do we offer?
As comprehensive property managers, we offer both Periodic and Fixed Term Tenancies. Periodic tenancies have a start date and no end date and can be terminated by either party giving the appropriate notice. Fixed Term tenancies have a start date and a termination date and can not be terminated prior to the termination date unless there is an agreement reached between both parties. Both types of agreements have different advantages. Talk to your property manager for further details.
How much Bond do you take and what happens to it?
We aim for a minimum of three weeks rent as bond and sometimes secure a four week bond if we deem it necessary. There are times, and with certain properties that we need to have a more flexible approach and sometimes tenants are allowed to pay off the last week of the bond. The Bond is receipted by us and paid over promptly to Tenancy services, along with the appropriate documentation as part of our property management obligations.
When and How do I get paid my rental income?
All rent is payable weekly, fortnightly or monthly in advance by the tenant into our Trust Account. (Real Estate agents must hold all monies held on behalf of other people into such a Trust Account. Note-not all Property Managers are real estate agents!).
At the end of each month as your property management company, we send you a statement accounting to you for the rent and management fees, along with any other disbursements. This can be sent electronically via email or in the post. Interim statements during the month can be sent at your request.
The rent is paid directly into your nominated bank account, either weekly, fortnightly or monthly.
What do you do if the Tenant gets behind in their Rent?
We have a zero rent arrears policy. This is a critical difference between our property management service and others. Our system produces information which is scanned daily by us, to show any tenants who have not paid their rent up to date.
We personally contact all tenants to advise them of non payment in order to get missed payments remedied ASAP. The appropriate written notices are sent (requirement of the law) to remind tenants that their rent is unpaid, and that they should contact us to put this right. This is known as a 10 Day Letter and the tenant has 10 working days (under NZ legislation) to remedy the situation. However, we do not wait until the expiry of the 10 working days and if a tenant has not remedied a rent arrears breach within 7 days of the breach an application is made to the courts to have the matter heard ASAP. If necessary we apply to the Tenancy Tribunal for a mediated order, or a termination of tenancy where appropriate.
If the tenant argues that they have paid and our records show they haven't they are required to provide receipts. Until we receive these or our records show they have paid we will follow our strict property management arrears protocols. Clients are kept informed throughout the process.
The key to arrears management is systematic, timely and frequent monitoring of rent payments and also our comprehensive tenant selection screening.
What do you do if the Tenant fails to take care of the property?
Regular inspections enable us to identify how the tenant is caring for the property, and if any repairs need doing. After identifying any issues clients are always informed of any issues.
Certain repairs may be needed to be carried out by the tenant at their cost (eg. if a window has been broken through carelessness) and other repairs may be the responsibility of the Landlord (eg. door locks which have become loose over time with use).
We monitor the repair, checking to see that it has been carried out. Sometimes it is appropriate to organise for the repair to be carried on behalf of the tenant, and then we send them the account for reimbursement. In this case work is checked carefully and if carried out by one of our tradesman then they generally guarantee their work.
If it is a legitimate landlord repair then if instructed we arrange for the repair and pay the account, deducting the money from rents collected. Any transactions and descriptions are recorded on monthly statements.
What records do you provide me with?
Monthly statement and interim statements if necessary. Every month at the close of the month, our property management services include a complete computerised statement which records all rents collected during the period, together with all disbursements, including any accounts paid on your behalf, (like rates, water, and any authorised repairs) plus the fees deducted.
It will also display the current tenants paid to date, the name of the tenant/s, and the property/ies. We can automatically send your Accountant a copy. We have various different statement formats and can work with you to choose the most easily interpreted statement that fits your requirements.
Annual Statement: At the close of business for the year we send you an Annual statement which summarises all the transactions of the financial year. We can automatically send your Accountant a copy.
How frequently do you carry out Inspections?
As your property management company, at our first property inspection called the "Initial inspection" we record the details and condition of the property at that point in time prior to the tenants moving in. When tenants vacate we carry out another called a "Bond inspection" to again record the details and condition of the property at that point in time so any issues can be identified and accounted for. These inspections are not charged for and are part of your property management service included in your management fees.
We recommend that properties are inspected either quarterly (especially newer properties) or at least six monthly, as these inspections can help keep maintenance costs down by dealing more regularly with any items that may require the tenant to remedy (Eg. stains on the carpets, and other general cleaning issues). Clients can attend inspections or even request no inspections, although we would advise against no inspections . We also offer annual inspections or no inspections if they are not required.
What do we do when tenants move out and there are damages?
If damages are identified then owners are informed ASAP. Sometimes the Bond needs to be retained where the tenant has not left the property in a satisfactory condition or where there is damage which needs remedying. No bonds are ever refunded unless we are completely satisfied that all rents and water bills are paid up to date and any damages if any are accounted for. It is an exception rather than a rule when bonds do not cover any damages and in this case urgent applications are made though he courts to have tenants made responsible for reimbursing us for any damages. Our property management service will take care of this.
What is Mediation and why do we use it?
Mediation is a service offered by Tenancy Services. We use Mediation (as opposed to the Tribunal) when we believe there is an opportunity to get a quicker response and we believe its possible for a more positive outcome from liaising with the tenant directly. When agreements are made between us and tenants at Mediation they will be sealed by the courts and enforceable by law. If we undertake mediation on your behalf as your property management company, then you will always be informed of the outcome.
What is the Tenancy Tribunal and when do you use it?
The Tenancy Tribunal is part of the District Court and as such it hands down legal rulings on all matters contained in the Residential Tenancies Act.
We use the Tribunal when issues can't easily be mediated, and this is generally when they are of a more serious nature, such as a tenant will not pay rent despite frequent communication, damages are identified, tenants are causing problems in the neighbourhood or if the tenant disappears and we need to get occupancy. There are many other cases where it may be applicable for us as property management company to apply to the Tenancy on your behalf and this will be carried out by well trained staff who have experience in legal representation and mediation. As always clients are kept informed every step of the way.
What happens when you get a Tenancy Order for Rent Arrears?
We negotiate as property managers with the tenant for a repayment schedule, or in certain cases we place it with Debt collectors to enforce.
How do you keep my property well maintained?
Also see How frequently do you carry out Inspections. In addition to regular Inspections if we are in the area, we often drive by to see the general condition of the exterior, as this gives us an idea of what might be happening on the inside! We often form good relationships with neighbours who also assist us in keeping an eye on properties.
We use a variety of reliable contractors who provide a quality service if necessary at a competitive price. If we are not satisfied that a tenant is keeping a property in an acceptable condition then the owner will be notified and we will take steps via the Tenancy Tribunal to terminate a tenancy and secure a new tenant who will look after the property.
How do you actually carry out the day to day management of my property?
Systems and Policies consistently applied. We have systematic approach to Property Management which involves us carrying out set tasks over and over, every day, which are designed to assist us to manage your property well. We keep to those systems, and train our staff in the use of those systems so they can provide you with excellent customer service. This way we do not need to rely on any one individual staff member (like many agents do) and instead we concentrate on the correct process being carried out efficiently so nothing is missed.
Our aim as your property management company is to manage your property as competently as we do our own. Since we are Investors ourselves, and because we are constantly talking to our customers, we believe we have a thorough knowledge of what needs to be done, to manage your property effectively.
Regular Communication
We are in constant communication with our Landlords and investors. it's what a good property management company should do. This is often via email, or telephone. We respond to queries for a range of items including investment advice, very promptly and generally the same day. If we need to research the query-we'll tell you and come back to you just as soon as possible. We also aim to respond to all tenant enquiries ASAP. They are a most important part of the equation and more often then not a happy tenant is a happy landlord.
Our "Team Approach" Saves You Time
We operate a "team" approach to property management. Our systematic approach to the management of your properties combine with our cutting edge technology to enable clear lines of communication. Our service is designed so that 90% of your enquiries can be answered by any of our staff who pick up the telephone just in case your property manager is out of the office. It is often unnecessary for any delay as the information you require is generally available at the push of a button.
All messages for staff are electronically logged in an internal message system and property managers or the person who answers the telephone will respond to these accordingly. The benefit to you is this case is that you are not waiting around to get hold of "your property manager" to answer your query. Also when our staff are on vacation or sick leave, or at training, your property is still being thoroughly and professionally managed by our competent team.
What happens when a Tenant gives Notice?
On a Periodic Tenancy a tenant is required to give at least 21 days Notice in writing to vacate a property. The termination date will be 21 days from the date it is received by Allen Realty.
We enter this information in our system and we send the tenant a letter confirming all details. As property managers, we give them advice and instructions about what condition to leave the property in to ensure their maximum Bond is returned. We also advise you of the vacating tenant's termination date as soon as a notice is received.
It is policy to have the tenant maintain rent payments right up until the actual termination date, so that the full Bond is maintained, in case of damage. We do not allow for tenants to stop paying rent and use a bond for final rent payments.
If we do not receive instructions from owners not to re-let properties we will start to market for new tenants as soon as the current tenants have given notice. This allows us to reduce potential vacancies between tenancies. We do not wait until tenants have vacated before we begin to market them. Rent reviews are undertaken ASAP and properties marketed at new updated market rents. Property management involves effectively managing all of these factors to maximise your occupancy rate.
What happens if I want to move back into the property or sell it?
On a Periodic Tenancy (not a fixed term) if you or a family member wants the use of your property, or you wish to sell it, you must advise the tenants in writing giving them 42 days notice, plus an additional two days for postage. This offers flexibility for our clients.
On a Fixed Term tenancy, the tenant has the right to occupy until the stated term ends. You may sell the property at any time, "subject to the existing tenancy", providing you give the required notice. When selling, you are obliged to notify the tenant in writing that the property is on the market. You will also need to give the tenant "reasonable notice" when you wish to have buyers inspect.
How do you Find a Tenant and Who pays to advertise my property for rent?
Targeting Tenants. From years of providing property management services to landlords, we think the most effective way to locate tenants is through Internet web advertising, newspaper publications (such as the NZ Herald, local papers, Chinese/community newsletters) and our existing tenant databases. As a proactive property management firm, we always have a register of prospective tenants who are updated regularly if properties become available that meet their criteria. This website also has a function to alert any users when a property becomes available that may suit their criteria.
For each property we confirm a Target Profile to match the tenant to the price, property style and location. Our aim is to find the most suitable tenant, at the best weekly rental, in the quickest possible time. Once application forms are received we carry out a comprehensive tenant selection process to ensure they meet our criteria.
Advertising your property For Rent
This service is included Free of Charge for all properties under management. Our clients DO NOT pay for any advertising of their properties unless a specific circumstance allows for it.
Can I arrange my own maintenance?
Yes. Allen Realty provides a customised property management service, which means you can choose the service you want. You can do it yourself, or organise a tradesman that you know to address any issues.
Do you do Short Term/Holiday Management?
We can provide a short term property management service if you are wanting to go on holiday. Special conditions apply, so email or phone for a Customised quote.
What Fees do you charge?
Allen Realty is a specialised Property Management company. We provide a full service or you can choose a customised one that better suits your needs. Property management fees depend on the type of property, location and number of properties.
We are not the most expensive in the industry, and we are not the cheapest. Most fees charged in the industry range from 7.5% to 10% depending on services offered. We are very competitive. Fees charged to you will be based on the actual property you want managed, the number you want managed, and the service you require.
Our property management fees are calculated on rents collected, and repairs and maintenance. A charge is also made for Inspections and Tenancy Tribunal hearings (exception rather than the rule). In this manner we can charge each customer for the service they choose, as opposed to charging a higher fee for a 'one size fits all' service.
Most of our business comes from current happy customer referrals or referrals from various affiliations we have with many property organisations throughout New Zealand. You can contact our Business Development team for the most up to date information on fees regarding your personal circumstances. Please confirm how you heard about our service as this may result in you being offered a reduced fee. Email: simonallen@allenrealty.co.nz
How do I know I'm getting Value for Money and Great Customer Service?
Testimonials
We are a highly recommended property management firm. We are recommended by our customers both in NZ and overseas who entrust their properties to us. These may be blocks of flats, single apartments, town houses, family homes and high value executive dwellings, located from Albany to Pukekohe, and situated waterside, city, suburban or country.
You may have seen us at Dolf de Roos Property Investors School , Auckland Property Universities, Entrepreneurs Success Centre, the New Zealand Property Investor Magazine or various other publications (like the old Kiwi Property Investor Magazine) and websites. We regularly sponsor Auckland Property Investor Association meetings and we are the preferred and only property management supplier to various local property advisors, teachers and mortgage brokers.
We have built a professional property management reputation in real estate and property management, over many years, and we are credible as Investors and Landlords ourselves. We are highly qualified in business and we have the systems and service orientation to ensure you receive a great property management service. See our 60 Day Money Back Guarantee.
Should I rent my property Furnished or Unfurnished?
Often furnished properties are harder to rent than unfurnished properties. This is because most long term tenants have their own possessions which they like to have around them. There are certain properties (eg. furnished apartments) which are popular because they are fully furnished for convenience. It is advisable to check with your property manager, to see what the actual tenant demand is like in the current climate.
For more specific information on our day to day duties and other property management services, and how we can offer a customised service to suit your individual needs email Simon Allen in our Business Development Team. Alternatively you can click the button below.
Property Management Testimonials
"I am totally happy with Allen Realty's service. For more than ten years they have looked after me with efficient maintenance and quick re-letting, even when the market was difficult. Their staff are very well informed. I highly recommend them." Read More
Property Management | Property Managers
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