Nelson PIA meeting 22 May

[Glenn]

NELSON PROPERTY INVESTORS ASSOCIATION

MAY 2012 NEWSLETTER

PO Box 198 Nelson

Our next meeting is being held at the Nelson Suburban Club, Tahunanui Drive on Tuesday 22 May. The meeting proper commences at 7.30 pm with the ever popular meal at 6pm when you will have the opportunity to chat to other investors. We have Thomas Bowater the insurance guru from Crombie Lockwood is returning to give us more on this topical subject. I have asked him to speak about making a major claim. Many people’s thoughts these days immediately spring to earthquakes. Well I can tell you from multiple first hand experiences that fires, floods, cyclones, and slips are rotten things that can also cause devastating damage and rent losses. Much of the loss can be mitigated if you have the right sort of insurance. More than one of my clients over the years had a cheap insurance option and lost out heavily. Even with the best insurance you need to have a grip on the claim process. Tuck those thoughts into your mental armour. You may be unlucky enough to need the information one day.Please remember to book the meal by emailing Glenn.

MARKET COMMENT

Some of you might remember I mentioned in a previous newsletter about the low vacancy rates in Nelson and how our rate was way better than Auckland’s. Well the summer drought is over and the rain is coming down. The number of vacancies advertised on Trade Me for Nelson has shot up to 169 in May compared with 80 in January and in Tasman 103 from 38. This still leaves Tasman in number four position in the country compared with Nelson in 12^th place right behind Auckland in 11^th place with an almost identical low vacancy rate. So yes we are seeing our traditional winter slower market with some properties taking a little longer to let. However generally, things are still reasonably good so long as the rental price is set right. Rumours of an improved selling climate are bringing some vendors to the market. In my management portfolio of rental properties a number of clients are putting their properties on the market to try and quit them whilst things are looking better. Some are definitely in a hurry to sell despite receiving good rental returns indicating that other things in their life have changed for the worse. The statistics that I have seen backed up by a few sale prices that I have been able to glean indicate that whilst lots more properties are selling the prices are not yet doing much to get excited about. Some of the Saudi and other nationality English language students moved here from Christchurch are heading home. Some short term holiday rentals have emptied out and longer term winter tenants are being sought. Some of the Christchurch refugees are starting to be paid out and are moving on. I have also noticed a few owner occupiers heading overseas and placing their properties on the rental market. So clearly a whole lot of factors are impacting on the market through out New Zealand and Nelson is not alone to feel the cold winter chills. For instance the vacancies advertised in Auckland increased by 600 between April and May.

NOBODY LOVES ME ANYMORE

For some strange reason I am always coming across people saying they would love to be a property manager one day. Even more people aspire to being a landlord. This seems to be a deep seated instinct. My staff and I still enjoy the variety and challenges but some experiences are hard to take.

This newsletter is published with the of Support Summit Property management.

Remember to support our sponsors.

A few weeks ago I had four tribunal hearings in one week spread over two days with the two different Tenancy Adjudicators. The tenant had made an application against me for recovery of bond. They did not think they should be charged rent till the day they left the property? The Tenancy Adjudicator and I could not figure out what the issue was. I supplied the end of tenancy notice confirming the day they had given notice and the day they said they would be out. On a form I use to confirm notice we detail exactly how much they will have to pay to the end of the tenancy. Now the bright young man (25) had his mother appear there as well. She really ripped into me. Said I had never advised him he had to pay till the day he left and because I had not told him her greatly loved son should not have to pay. The TA carefully pointed out to her that my form clearly showed what he owed. Then the penny dropped. They thought that because they paid rent weekly the last weeks rent should be just that exactly one week and the last two days they stayed in the property should be for free. Everyone was reasonably cordial till the end of the hearing when the TA verbally said what she would award. The mother then lost it. I politely suggested we leave the court together and I would attempt to explain how the RTA provided for rent accruing daily. She would not have a bar of my explanation and accused me in a high voice that I ripped everyone off. The second day dawned and I headed back to court. This time the tenant had already moved out of the property after I made the application for termination. Again the mother appeared to support her son. She made a whole lot of nasty false allegations about me before I had even been appointed to manage the property? All I had done was to issue the tenant a change of landlord form without even saying a word to him and apply to the court to terminate the tenancy because the rent was in arrear. I can handle being abused and falsely accused but I do not like it and get a bit upset when the court believes the lies.I was thinking about these unpleasant things when I called in at one of the rentals. The tenant came out to great me and offered me some free feijoas from the many trees that are on her property. No big deal but her young daughters joined in the scurry around the trees to fill up a huge bag for the landlord. It could have been a scene from the Sound of Music. Seeing the whole troupe lined up with such huge smiles on their faces was a joy to behold. It reminded me that I am lucky to have such wonderful tenants all over town. They appreciate I have a job to do and that they have simple obligations as well to pay the rent and look after the property. However many go further than that and are nice to me and say and do nice pleasant things. Thinking and writing about these and many other tenants make the business more than just a money gathering exercise.

ARE YOU GETTING VALUE FROM YOUR NZPIF MEMBERSHIP CARD

President Godfrey and I have just returned from a NZPIF communication day in Wellington. Cliff Seque reminded us of the great discounts that have been provided for you from the likes of ANZ bank and Bunnings. Have you contributed to the $16000 of sales our members have made in Nelson branch of Bunnings? If not you are missing out on some great discounts.