NELSON PROPERTY INVESTORS ASSOCIATION
MAY 2004 NEWSLETTER
PO Box 198 Nelson [email protected]
Our next meeting is being held at the Ocean Lodge Muritai St Thursday 13th May. The meeting starts at 7.30pm with the usual optional meal at 6pm. Mark Brown of Brown & Associates Chartered Accountants a well known local accountant will be talking. Mark is a well-respected presenter at investment seminars. He comes highly recommended by those that have heard him before. Tax and property investment accounting is always changing. All old and new investors need to hear Mark. Also Dorien Forster from Wellington will be talking on her “Land Lording for Success” courses. And that is not all, we have to squeeze our usual rapid fire AGM into the meeting also. So folks this will be another action packed, informative, interesting meeting.
RSVP to Glenn for the meal please
IS BEING JUDGEMENTAL BAD?
Over the last year the problems that some people have experienced in finding accommodation has been sensationalised by the news media. There is little doubt that our society is becoming more tolerant of what at one stage would have been classed as deviant behaviour. In fact almost anything goes, as the saying goes. I can still remember one of my work mates complaining back in the 60’s that the Auckland newspaper would not accept his advertisement for mixed sex flat mates. These days if you do not accept purple skinned, homosexual, ray gun totting, Martians then you run the risk of being accused of discrimination. So how far do we go when it comes to doing credit checks, previous landlord checks, asking for income and employment details, and details such as names and ages of the applicant’s (sexual) partner. Also where do things like gut feelings about bad looking types fit into the scheme of things. Tenancy services are about to launch some advanced training for landlords. In their course notes they included a suggested application form. Being appropriately PC as required by the all knowing all wise Government they left off asking for applicants age (age discrimination) Partner’s name (sexual bias or marriage status) Children’s names (choosing on the basis of do or don’t having children is prohibited they warn), occupation (horrors one might discriminate by wanting to let to a nice school teacher). I actually feel a bit sorry for Tenancy Services trying to educate landlords on the realities of life because the powers that be do not appear to permit the use of common sense and intelligence.
Now us landlords want three main things. We want our money, we want the property cared for, and we want our neighbours (adjacent tenants) quiet enjoyment respected.
The tried and tested process to determine if your applicant is likely to meet the above criteria is a credit check, this can then reveal their true previous address, communicate with the past landlord after first checking that the person you ring is the owner / property manager of the last rental and throw in a few simple questions to the applicant for good cause. Just because someone has been bad in the past is not
a 100% guarantee that they will be bad in the future but it is a fair assumption. Ignoring these checks (or being barred by the Privacy Commissioner from enquiring about them) leaves you with having to choose tenants on the basis of sex, race, marriage, employment, or family status. All of these are against the law so the only thing left is to choose them on the quality of their smile.
LANDLORDS ON LINE
You do not need to be a nerd to enjoy and learn something from the Internet. These two good sites are worth a look. One is http://www.mrlandlord.com
This is an American site with thousands of members. After you have sifted through the jargon and discard the irrelevant material you will find some really interesting facts that can be applied here.
The other easier to use and more relevant site is www.propertytalk.co.nz. This site is free. You can subscribe to monthly and daily news updates by email.
The forums enable you to make contact with other landlords who are facing the same issues as yourself.
Post a simple question and soon other experienced landlords will share their experience with you. Have a look and give it a go. You may surprise yourself and hey you might even be able to help someone else.
KPI MAGAZINE
Jez Johns the Editor of KPI was well received at the last meeting. KPI availability and readership continues to climb. Their articles are evolving and maturing making them a favourite with many readers. Matching our membership database with theirs continues to be an ongoing challenge. If you have not been getting your magazine please let us know.
This newsletter has been sponsored by SBS. Proud to be a Building Society not a Registered Bank
THE MARKET
I am finding life a bit like walking on eggshells at present. The market is definitely fragile. Some landlords are finding it hard going finding tenants at the prices they are asking or have enjoyed in the past. Applicants who are desirable and have good credit records are starting to shop around and bypass over- priced or undesirable properties. But price is not everything. People like service and are prepared to pay for it. Landlords who work at marketing their properties are still in business, they just have to work a bit harder at it. When I entered real estate, selling houses, 10 years ago, I simply could not figure out how some sales people in the same office were able to make lots of sales when I did very few. They were selling exactly the same stock as I was and they appeared to have nothing more to offer than I did. Then I figured it all out. They were simply better at selling than me. They had more contacts and people trusted them more.
Well land lording is a bit the same. Some landlords are able to let their refrigerator flats to Eskimos at a premium whilst others struggle to let nice homes at a reasonable market rent. Tenants want to know that you will care for them. Will you fix things up when they break but over react when they are late with their rent or they let their grass grow as long as your own. I have heard some landlords use the excuse that they will not fix up something because the tenant is in arrears. This can have a detrimental effect on your ability to let your property promptly when there is plenty of choice. Maintain a good relationship with your tenants in order to store up goodwill credits. You might just need to drawn on these credits in the future. First NZ Capital (share brokers) in their March newsletter make the following comment.
While no firm conclusions can be drawn from the past, our analysis did show that in the last two occasions the NZ dollar reached previous valuation extremes the NZ economy moved into recession around 12 months later.
NZPIF CONFERENCE DUNEDIN
This is scheduled for 17-19 September. It is being held at the Town Hall located in the Octagon. The canny Otago association has negotiated a special discount at five hotels for all needy deserving landlords. You have to whisper the secret password to get the discount. You must say when making your bookings “NZPIF CONFERENCE”. I have the list so ring me before booking. The conference is always full of inspiring and informative speakers. I am sure that my investment in attending conferences over the years has been one of my most profitable investments.
THAT TIME OF THE YEAR AGAIN
Your renewal forms are enclosed for everyone apart from those who have paid since 1st January. This year we intend supplying you with the Wellington Property Investors magazine in addition to this regular newsletter and KPI. The Capital Property Investor magazine is published in glossy format four times a year. Without a doubt it is certainly by far the best and most interesting of the local magazines produced in NZ. You will just love it. The NZPIF continues to up grade their services and benefits for us in return for a small increase in affiliation fees. Your subscriptions now equate to around 3 to 4 days rent for one property. We trust that the benefits of being a member will save you many times this amount.
WHO AM I
A minor storm in a teacup is continuing to be enacted out between various sections of the Department of Courts and Tenancy Services. I was in Tribunal this week and the Adjudicator explained that she was changing the name of the applicant to Mr Property manager and Mr Owner because of the changes to the rules. Now only a few months before I requested from the same Adjudicator if I could have the word “agent” removed from the order but she declined because I had made the application out using the term “agent”
Now just before you switch off just stop and think about the implications and what is this storm all about. The clever court people had an “independent” experienced lawyer who normally appears for contempt proceedings advise them to only permit lawyers appear as agent for all creditors. Now this suddenly threw a spanner into the works for all property managers and any of you who look after a property for your daughter, mother, trust or LAQC. Then the District Court collections staff advised that there is no problem so long as the name of the person appearing at the court proceedings is named on the tribunal order.
So where are we now. In my opinion I think today’s advice is that when you make out a tenancy agreement for a property that you do not directly own in your own name you should write the name of the landlord as Mr Me as agent for Mr Owner. When you lodge your tribunal application you should write it as Mr Me and Mr Owner. This will ensure you are protected if problems arise with the tenancy directly related to the actions of Mr Owner in that you can claim some form of separation. You will however need to employ a lawyer to appear on your behalf rather than a friend if you or Mr Owner is not available to attend the court proceedings that follow on from the tribunal.
Disclaimer. Anyone stupid enough to act on advice or comments in this newsletter without thinking for themselves deserves to suffer the consequences.
MAY 2004 NEWSLETTER
PO Box 198 Nelson [email protected]
Our next meeting is being held at the Ocean Lodge Muritai St Thursday 13th May. The meeting starts at 7.30pm with the usual optional meal at 6pm. Mark Brown of Brown & Associates Chartered Accountants a well known local accountant will be talking. Mark is a well-respected presenter at investment seminars. He comes highly recommended by those that have heard him before. Tax and property investment accounting is always changing. All old and new investors need to hear Mark. Also Dorien Forster from Wellington will be talking on her “Land Lording for Success” courses. And that is not all, we have to squeeze our usual rapid fire AGM into the meeting also. So folks this will be another action packed, informative, interesting meeting.
RSVP to Glenn for the meal please
IS BEING JUDGEMENTAL BAD?
Over the last year the problems that some people have experienced in finding accommodation has been sensationalised by the news media. There is little doubt that our society is becoming more tolerant of what at one stage would have been classed as deviant behaviour. In fact almost anything goes, as the saying goes. I can still remember one of my work mates complaining back in the 60’s that the Auckland newspaper would not accept his advertisement for mixed sex flat mates. These days if you do not accept purple skinned, homosexual, ray gun totting, Martians then you run the risk of being accused of discrimination. So how far do we go when it comes to doing credit checks, previous landlord checks, asking for income and employment details, and details such as names and ages of the applicant’s (sexual) partner. Also where do things like gut feelings about bad looking types fit into the scheme of things. Tenancy services are about to launch some advanced training for landlords. In their course notes they included a suggested application form. Being appropriately PC as required by the all knowing all wise Government they left off asking for applicants age (age discrimination) Partner’s name (sexual bias or marriage status) Children’s names (choosing on the basis of do or don’t having children is prohibited they warn), occupation (horrors one might discriminate by wanting to let to a nice school teacher). I actually feel a bit sorry for Tenancy Services trying to educate landlords on the realities of life because the powers that be do not appear to permit the use of common sense and intelligence.
Now us landlords want three main things. We want our money, we want the property cared for, and we want our neighbours (adjacent tenants) quiet enjoyment respected.
The tried and tested process to determine if your applicant is likely to meet the above criteria is a credit check, this can then reveal their true previous address, communicate with the past landlord after first checking that the person you ring is the owner / property manager of the last rental and throw in a few simple questions to the applicant for good cause. Just because someone has been bad in the past is not
a 100% guarantee that they will be bad in the future but it is a fair assumption. Ignoring these checks (or being barred by the Privacy Commissioner from enquiring about them) leaves you with having to choose tenants on the basis of sex, race, marriage, employment, or family status. All of these are against the law so the only thing left is to choose them on the quality of their smile.
LANDLORDS ON LINE
You do not need to be a nerd to enjoy and learn something from the Internet. These two good sites are worth a look. One is http://www.mrlandlord.com
This is an American site with thousands of members. After you have sifted through the jargon and discard the irrelevant material you will find some really interesting facts that can be applied here.
The other easier to use and more relevant site is www.propertytalk.co.nz. This site is free. You can subscribe to monthly and daily news updates by email.
The forums enable you to make contact with other landlords who are facing the same issues as yourself.
Post a simple question and soon other experienced landlords will share their experience with you. Have a look and give it a go. You may surprise yourself and hey you might even be able to help someone else.
KPI MAGAZINE
Jez Johns the Editor of KPI was well received at the last meeting. KPI availability and readership continues to climb. Their articles are evolving and maturing making them a favourite with many readers. Matching our membership database with theirs continues to be an ongoing challenge. If you have not been getting your magazine please let us know.
This newsletter has been sponsored by SBS. Proud to be a Building Society not a Registered Bank
THE MARKET
I am finding life a bit like walking on eggshells at present. The market is definitely fragile. Some landlords are finding it hard going finding tenants at the prices they are asking or have enjoyed in the past. Applicants who are desirable and have good credit records are starting to shop around and bypass over- priced or undesirable properties. But price is not everything. People like service and are prepared to pay for it. Landlords who work at marketing their properties are still in business, they just have to work a bit harder at it. When I entered real estate, selling houses, 10 years ago, I simply could not figure out how some sales people in the same office were able to make lots of sales when I did very few. They were selling exactly the same stock as I was and they appeared to have nothing more to offer than I did. Then I figured it all out. They were simply better at selling than me. They had more contacts and people trusted them more.
Well land lording is a bit the same. Some landlords are able to let their refrigerator flats to Eskimos at a premium whilst others struggle to let nice homes at a reasonable market rent. Tenants want to know that you will care for them. Will you fix things up when they break but over react when they are late with their rent or they let their grass grow as long as your own. I have heard some landlords use the excuse that they will not fix up something because the tenant is in arrears. This can have a detrimental effect on your ability to let your property promptly when there is plenty of choice. Maintain a good relationship with your tenants in order to store up goodwill credits. You might just need to drawn on these credits in the future. First NZ Capital (share brokers) in their March newsletter make the following comment.
While no firm conclusions can be drawn from the past, our analysis did show that in the last two occasions the NZ dollar reached previous valuation extremes the NZ economy moved into recession around 12 months later.
NZPIF CONFERENCE DUNEDIN
This is scheduled for 17-19 September. It is being held at the Town Hall located in the Octagon. The canny Otago association has negotiated a special discount at five hotels for all needy deserving landlords. You have to whisper the secret password to get the discount. You must say when making your bookings “NZPIF CONFERENCE”. I have the list so ring me before booking. The conference is always full of inspiring and informative speakers. I am sure that my investment in attending conferences over the years has been one of my most profitable investments.
THAT TIME OF THE YEAR AGAIN
Your renewal forms are enclosed for everyone apart from those who have paid since 1st January. This year we intend supplying you with the Wellington Property Investors magazine in addition to this regular newsletter and KPI. The Capital Property Investor magazine is published in glossy format four times a year. Without a doubt it is certainly by far the best and most interesting of the local magazines produced in NZ. You will just love it. The NZPIF continues to up grade their services and benefits for us in return for a small increase in affiliation fees. Your subscriptions now equate to around 3 to 4 days rent for one property. We trust that the benefits of being a member will save you many times this amount.
WHO AM I
A minor storm in a teacup is continuing to be enacted out between various sections of the Department of Courts and Tenancy Services. I was in Tribunal this week and the Adjudicator explained that she was changing the name of the applicant to Mr Property manager and Mr Owner because of the changes to the rules. Now only a few months before I requested from the same Adjudicator if I could have the word “agent” removed from the order but she declined because I had made the application out using the term “agent”
Now just before you switch off just stop and think about the implications and what is this storm all about. The clever court people had an “independent” experienced lawyer who normally appears for contempt proceedings advise them to only permit lawyers appear as agent for all creditors. Now this suddenly threw a spanner into the works for all property managers and any of you who look after a property for your daughter, mother, trust or LAQC. Then the District Court collections staff advised that there is no problem so long as the name of the person appearing at the court proceedings is named on the tribunal order.
So where are we now. In my opinion I think today’s advice is that when you make out a tenancy agreement for a property that you do not directly own in your own name you should write the name of the landlord as Mr Me as agent for Mr Owner. When you lodge your tribunal application you should write it as Mr Me and Mr Owner. This will ensure you are protected if problems arise with the tenancy directly related to the actions of Mr Owner in that you can claim some form of separation. You will however need to employ a lawyer to appear on your behalf rather than a friend if you or Mr Owner is not available to attend the court proceedings that follow on from the tribunal.
Disclaimer. Anyone stupid enough to act on advice or comments in this newsletter without thinking for themselves deserves to suffer the consequences.