Landlord FAQs
What rent can I get for my property?
Our rental appraisals are always “fair market rental” based on current market statistics along with our experience of similar properties in your area. Often if properties are priced too highly, they will not attract the same amount of attention as those that are competitively priced. This will become apparent very quickly from tenant feedback & enquiry rates. We aim to get the best market rental for our landlords. Please note, rents can vary depending on the time of year and current demand for property.
How long will it take to get a tenant?
Demand for rental properties can be high and in most cases once a tenant has given 28 days’ Notice to Vacate, we are often able to arrange for a new tenant to move in as soon as the previous tenant leaves. New rental properties generally do not last long once advertised. If you have a new build, a key component is to have early access to your property to minimise vacancy once you have settled on the property.
What does a management fee cover?
A management fee covers the day to day administration and managing of your rental property. Please refer to our Management Agreement for further information.
What documents do I need to sign?
You need to complete & sign a Management Agreement prior to us advertising your property or finding tenants for you.
How long does a Management Agreement last?
Our Management Agreement is an on-going authority of a minimum of 6 months, after which can be terminated by either party with one month’s notice. We are confident that once you try our service you will not want to leave.
How do you qualify prospective tenants?
Once we have shown a property to a tenant, they will usually indicate their interest immediately or shortly thereafter. At this stage we have them complete our application process which includes them filling out a comprehensive application form, provide personal and business references, and authorise previous landlord and credit checks. We have dealt with hundreds of tenants each year and have a very good feel as to whether tenants will be suitable or not. Once all the information has been collated and checks completed, we will recommend who we feel is the most suitable tenant/s and forward all the information to you to allow you to make the final decision, or you can allow us to make the decision on your behalf - your call!
How much does the tenant pay before they move in?
We collect two week’s rent in advance and 4 weeks rent as bond..
Who holds the bond that the tenant has paid?
The bond is paid directly to the Department of Building and Housing and is held by them until such time as the tenant vacates a property.
Who pays the Letting Fee?
As of 12 December 2018, it is an unlawful act to charge tenants letting fees. The Residential Tenancies (Prohibiting Letting Fees) Amendment Act was passed to remove additional upfront financial barriers for tenants trying to rent homes. Anyone who charges a tenant letting fees could be liable for up to $1,000 in exemplary damages.
Letting fees are normally the equivalent of one week’s rent (excl. GST), and paid at the beginning of a tenancy as an upfront cost. Letting Fees covers the costs of the Property Manager: such as:
listing and advertising rentals
showing houses
vetting potential tenants.
Any costs for letting agent services at the beginning of a tenancy may be covered by the landlord.
How do I get paid and how often is this done?
Payment, less our management fee plus GST, is made on a monthly basis by electronic banking directly to your bank account. We do offer the facility for mid-month payments as well, if this is required. If any maintenance has been completed during the month then the applicable cost is also deducted prior to monthly rent settlement, so that your contractor can be paid. A monthly statement is also e-mailed at this time.
Who pays for the water rates?
Tenants are required to pay for their metered water, everything that is, except for the fixed charge that under legislation must be paid by the landlord. When a water rates invoice is received, it is generally on-charged to the tenants within 24 hours (sent via email) requesting payment of the account within 10 days. The water rates invoice is charged to your account for payment in the next run. When the monies have been received from your tenant, you are then credited the tenant’s payment.
Do I need house insurance?
Having your property insured is crucial and it is important that you advise your Insurer that the property is tenanted. It is the tenant’s responsibility to insure their possessions (contents insurance) that are on your property.
As of 27 August 2019, Landlords will need to provide insurance information in any new tenancy agreement, including whether the property is insured and if so, what the excess amount is. The statement in the tenancy agreement must also inform the tenant that a copy of their insurance policy is available on request.
As a result, we will require your policy renewals annually to comply with the legislation.
Do I need tenant insurance?
There is an Insurance Policy that is specifically designed for landlords and covers theft by tenants, malicious damage and your legal liabilities for occurrences on the property that cause death or bodily injury to other people, or damage to other people’s property. We can help you by providing details of a company that specialises in comprehensive Landlord’s Insurance Policies available only through property management companies.
How often do you inspect my property?
We carry out inspections on every property not less than four times per year and in each instance we complete an inspection report, a copy of which is emailed to the landlord. The main focus of our inspections is to ensure that your property is being looked after. The inspection is arranged with the tenant and they are given the opportunity to advise us of any maintenance issues that may need addressing. With all property managements we obtain a pre-approved maintenance expenditure limit so that small maintenance issues can be addressed immediately. If we find any major maintenance that needs to be addressed, whether it is routine or remedial, we will always advise you and discuss how you wish to proceed.
How often do you conduct rent reviews?
We carry out rent reviews every 12 months to ensure market rent is being achieved. This does not automatically guarantee there will be a rent increase. It is also important to note that the rent cannot be increased for at least 365 days after the previous rent increase or the tenancy start date. In a Fixed Term Tenancy the rent can only go up if this is written in the Tenancy Agreement or when the lease is renewed.
What happens if I want to sell my property, can you help?
You can sell your property at any time. We can refer to you a Sales Agency in the area, to whom we have strong ties to. They will assist you in achieving the best price in the shortest possible time, who are trusted and reflects our professionalism.
What process do you use if the tenant is late with rent?
Occasionally a tenant can be late with rent, for this reason we check through our rental software system on a daily basis to ascertain if rent and other costs (water rates etc.) are overdue. We immediately contact the tenant and remind them that payment is due that day. This process continues on a daily basis until the money is paid, however if 5 days pass without funds being received we issue a formal 14 day notice advising that payment is in arrears. Failure to comply with this payment request will result in a Tenancy Tribunal application being lodged where we will seek to have the Tenancy ended. We will always try to resolve the issue before going to the Tenancy Tribunal even if this is by way of an instalment arrangement to pay the arrears.
Are your fees competitive?
Our Property Management fees are competitive and we pride ourselves on providing excellent service to our clients and promise to deliver what we say we will. Our fees are all disclosed from the outset in our Rental Management Authority Agreement. All fees are a tax deductible expense.
What happens if there is a problem late at night or over the weekend?
We have a property manager available to deal with after-hours emergency situations, 7 days a week.
Why should I choose Omokoroa Property Management to manage my property?
Our mission is to provide outstanding property management services, and we do.
How do I change the agency that is managing my property to Omokoroa Property Management?
This is not a problem, you simply complete our Rental Management Authority & we take care of the rest for you. Most property management agencies require one month’s notice to terminate the Agreement, we will work with you to ascertain what notice period is required, if any, with your existing property manager.
How do I make sure I am acting within the bounds of the Residential Tenancies Act?
We have in-depth knowledge of the Act and as property managers it is our responsibility to ensure that no breaches of this Act occur and that we advise landlords and tenants of their rights & responsibilities. You can also visit the website of Tenancy Services http://www.dbh.govt.nz which has answers to most question’s that landlords and tenants need to have answered.
How much notice does a tenant have to give if they want to vacate?
Under a Fixed Term Tenancy a tenant is entitled to remain in the property until the expiry date.
A Fixed Term Tenancy automatically becomes a Periodic Tenancy unless both parties agree to extent the fixed term tenancy. If a tenant wishes to give notice, they must give a minimum of 28 days notice, of which the expiry date is after the fixed term end date. A Fixed Term Tenancy cannot be ended before the end of the term without the written agreement of both parties, or a Tenancy Tribunal order.
In general, under a Periodic Tenancy, a tenant must give a landlord at least 28 days written notice that they want to end the tenancy.
Can I give a Tenant Notice to Vacate?
If the owner, or immediate family wishes to occupy the property, the owner must give 63 days notice, that the family member will reside in the property within 90 days, for a minimum of 90 days.
If the owner wishes to sell the property, we recommend you refer to the Tenancy Services website, as there are different rules regarding the types of sale.