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Property managers are not tenancy managers?

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  • Property managers are not tenancy managers?

    "Renters United spokesman Robert Whitaker raised concerns about the growth of property management companies in the city.

    He said they were not tenancy managers, and their business model relied on turnover and "fixed-term tenancies help them push the price up to get top dollar"."

    I wonder what some of our PM posters think of this. I'm thinking Mr Whitaker means that PMs don't manage properties the way he would like them to.

    The quote above is from article at the link below, and is from a meeting held by the Labour Party at Wellington's Victoria University, to discuss the current rental crisis in the capital. The expert blames the 'crisis' on the government - the decline in state housing.

    In Wellington City at end of 2016 there were 254 applicants on the social housing register. 147 (nearly 60%) of these were single people / couples without children. It is the case that historically state housing has been targeted at families, so not 1 bedroom places. But in any case numbers are not showing a huge demand from families - about 90 on the register, most needing 2 bedrooms so 1 or at most 2 children.

    No mention in the article of the Accommodation Supplement BTW, but there is a plug for the rental warrant of fitness in another attempt to get this on the government radar and budget. So far, not so good.


  • #2
    Regarding dampness.

    We see, regularly, properties become damp when tenants move in and the same property remains dry when other tenants move in.

    Why is that I wonder?

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    • #3
      We know stupid when we see it, don't we?

      An upcoming study funded by the taxpayer would look at producing a rental warrant of fitness to improve security for renters, she said.
      Security? Security of tenure? Something else? What?

      Labour housing spokesman Phil Twyford outlined to the meeting a plan to tackle the problem, by "dealing to property speculation" with income tax on capital gains.
      Doh! Property people who trade are already [income] taxed on their gains.

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      • #4
        Originally posted by Perry View Post
        Security? Security of tenure? Something else? What? .....

        But but but - she's the expert and a professor even. She must know what she's talking about.

        Maybe she means secure from falling through a glass door or window as it have to have visibility strips under the current WoF proposal.

        She might get some traction in Wellington City as the new mayor has gone public saying he will introduce a mandatory WoF for rentals. Mind you, the previous mayor said the same thing but soon afterwards changed it to voluntary.

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        • #5
          Originally posted by Perry View Post
          Doh! Property people who trade are already [income] taxed on their gains.
          I'm sure Phil Twyford is aware of this. But what about the speculators who are buying in Auckland right now at 3% yields, expecting to keep the property for 5-40 years "and sell one day".

          They can't possibly be buying for present income, can they? Even with a 40% deposit most aren't cashflow positive. It has to be speculation.
          AAT Accounting Services - Property Specialist - [email protected]
          Fixed price fees and quick knowledgeable service for property investors & traders!

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          • #6
            Originally posted by Anthonyacat View Post
            I'm sure Phil Twyford is aware of this. But what about the speculators who are buying in Auckland right now at 3% yields, expecting to keep the property for 5-40 years "and sell one day".

            They can't possibly be buying for present income, can they? Even with a 40% deposit most aren't cashflow positive. It has to be speculation.
            Perhaps they are 'speculating' that there will be a break even point one day. Once paying down principal and rent rises over time are taken into account that break even point might be only a few years away. Which might not be a major for those who plan to sell, or live off the income, when they retire.

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            • #7
              Originally posted by Anthonyacat View Post
              I'm sure Phil Twyford is aware of this. But what about the speculators who are buying in Auckland right now at 3% yields, expecting to keep the property for 5-40 years "and sell one day".

              They can't possibly be buying for present income, can they? Even with a 40% deposit most aren't cashflow positive. It has to be speculation.
              And investing in a business now in the hope of future returns is bad because ....? #SnapInc
              DFTBA

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              • #8
                Artemis,
                He said they were not tenancy managers, and their business model relied on turnover and "fixed-term tenancies help them push the price up to get top dollar".
                I'll go on record.
                Whilst we collect a letting fee, it doesn't always cover the true cost of placing a tenant at a property.
                We prefer to have great tenants staying for as long as the owner wants them there.
                Top dollar isn't always the best outcome re: tenant selection, vacancy, expectations, etc.

                Have to agree with Keys about dampness. Climate in Auckland (and NZ as a whole I guess) plus new people to the city/country requires a fair bit of education.
                Rentex Limited Property Management - Est. 1988

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                • #9
                  If tenants wish to have security of tenure they can purchase a leasehold unit

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                  • #10
                    Originally posted by Anthonyacat View Post
                    They can't possibly be buying for present income, can they? Even with a 40% deposit most aren't cashflow positive. It has to be speculation.
                    Like buying shares in Xero and a number of other companies?
                    Or Trademe when it started.
                    Or Facebook and Google when they started.

                    Some play the long game but it is hard to seperate those playing the long game and those looking for free capital gain.

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