The New Year has started were the old one finished off. Property Management companies in the headlines for all the wrong reasons. This time the Te Aro branch of Quinovic is back in the news following revelations that many of the reviews online are fake. Stuff.co.nz journalist Dileepa Fonseka released the story on the 20th January and many individuals working for Quinovic franchises up and down the country must have thought ‘not again!’ when it appeared. This branch seems to be doing their best to commit commercial Hari-kari following their terrible faux-pas with the now infamous ‘Your Tenants may hate but you will love us’ advertising campaign. Unfortunately, it looks like they have failed to learn their lesson.
Where to start? I had the same problem this time last year when I did the same article. 2017 seems like a distant memory now as over the last 12 months, our industry has had everything thrown at it including a bucket of KFC!
In my time working within the Property Management industry and in particular the rental sector, I cannot think of a time when we have had so much upheaval. Saying that it has been a challenge is an understatement. We have a lot to look at so let’s not waste any more time. As ever, we would love your feedback along with your high’s and low’s of the year.
Last week, one of Wellington’s largest Property Management companies made the headlines for suggesting to landlords that they increase rents by $6 a week to recover the cost of the letting fee as they are forced into on charging it to the landlord. Many criticised Oxygen Property Management for taking such an approach however in our opinion, they were simply doing their job.
To expect a company not to try and recoup losses that their clients may face due to landlords absorbing the letting fee is utterly naive and delusional. If you believe that a landlord is not going to try and recover the costs from tenants then you are simply in denial or have no understanding about how business works.
Almost twelve months on from the formation of the Government, the changes around tenancy reform in New Zealand are coming thick and fast. Make no mistake, change is coming and particularly around the security of tenure. A case I dealt with recently highlights why tenants need more security.
Last week I received a call from a Property Manager last week asking for some guidance. The situation arose after a tenant was given 90 days notice to end the tenancy.
Let me explain the scenario for you that many of you reading this will probably relate to this story.
Never before has our industry come under such intense scrutiny as it has right now. Whether it be tenant groups, politicians, the media or the oppressive Tenancy Compliance and Investigation Team, everyone wants to attack Property Managers. In fairness, we seem to be giving them plenty of ammunition and the latest faux pas by a Wellington-based Property Management company was embarrassingly distasteful. One wonders what they must have been thinking?
With all the negative publicity and an increasingly vocal call from all parties to regulate our industry, it is now a case of when the regulation of our industry will happen rather than if.
Who would have thought six weeks ago that we were facing the prospect of a change of government?
Lifeless Labour were limping to an election defeat with its worst poll rating in modern history and prospect of a Labour lead government seemed like a huge improbability. Then all of a sudden, Andrew Little resigns and Jacindamania was born
In 2016 we conducted our first Property Management Survey with over 300 people responding. This year we want to make it even bigger with more in-depth analysis about the industry that we love. Everybody who completes the survey goes into a draw to win a $200 Prezzie Card. The survey takes approximately 10 minutes to complete.
We had a very strong response with exactly 100 people taking part in our short survey on Methamphetamine and whether Property Managers should be carrying out testing.
The results clearly show that nearly three quarters of you believe it is a clear conflict of interest for a Property Manager to carry out Meth testing.
However, when we asked if you thought it was safe to live in a property with a reading of 1.5 micrograms per 100cm2 (new standards), you weren't so sure. Even so the majority of you believe it was safe to live in at 58%.
24% did not know and only 18% were not prepared to live in a house which was contaminated under the new standards.
I enjoy writing about the Property Management industry. It is an industry that I am extremely passionate about. Words normally come easy to me but the tragic circumstances around the shooting and killing of Property Managers Wendy and Natanya Campbell by tenant Quinn Patterson, left me feeling numb and struggling to find words.
A man has lost a wife and daughter, a community is in shock and our industry is struggling to understand how such a terrible incident could have happened.
However, as awful as the news was, I have to admit I was not entirely surprised.
Late last month the eagerly anticipated new standards around Methamphetamine contamination where released. This has come after a lengthy process which also involved a large amount of public submissions. Clearly, there is plenty of emotion that is involved around this hugely controversial topic. This was evident during the recent REINZ Seminar involving members of the panel that helped introduce the new standards. Included in the panel where Lisa Gerrard (REINZ), Darryl Thompson (Auckland Council), Miles Stratford (Meth Solutions) and lawyer Richard Hern.
It's a tough world out there, especially if you find yourself in the 'mature' age bracket and in the position of looking for employment. Now that I find myself in the mature category it has become more apparent how we are looked upon or overlooked when finding ourselves back in the job market. One thing I would advise is don't write off those mature people who come with bags of work and life experience.
Recruitment of your next staff member is often left till the last minute, done without prior planning and with the idea that it's cheaper and more effective to do yourself. Companies are often in a hurry to recruit therefore take the 'best out of a bad bunch' approach. Employees are the biggest and most important asset of any company and therefore deserve a robust and clearly defined process and to aid in the process there are some vitally important elements to consider ensuring you attract and recruit the next superstar for your team.
New changes in the Health and Safety at work with regards to Asbestos could become the next big challenge that the Property Management industry needs to tackle.
Recently, Real iQ attended a REINZ Breakfast in Wellington where the keynote speaker addressed a room of Property Managers about pending law changes that will likely lead to more compliance being thrown on an industry already struggling to cope with changes to Health and Safety and the Residential Tenancies Act.
A national survey of Property Managers and Landlords has discovered that 4 out of every 5 people believe tenants should occur a penalty for late payment of rent. Director of Real-iQ, David Faulkner believes it’s a no brainer; if the penalty is instated less cases will make it to the Tenancy Tribunal therefore long term it will save the tax payer, tenants and landlords money. It will also reduce waiting times for tribunal hearings as tenants will be less likely to fall into arrears.
The Residential Tenancies Amendment Bill (No. 2) introduced to Parliament today will provide better protections and clarity for tenants and landlords, Building and Construction Minister Dr Nick Smith says.
“This Bill makes three practical changes to the Residential Tenancies Act to help ensure our tenancy laws better manage methamphetamine contamination, liability for careless damage and the tenancy of unsuitable properties. It builds on the changes we made last year requiring smoke alarms and insulation, and establishing a Tenancy Compliance and Investigations Team.
A report recently published in the United Kingdom around the impact of scrapping the letting and how it will affect the Property Management industry has raised alarm bells. The ARLA Propertymark report warns that long term loyal tenants will be forced to pay more and potentially 16,000 jobs in the UK will be put at risk as around 20% of revenue will be lost.
Over 220 Meth-Tribunal cases heard in 2016
IAG state total claims to be approximately $14 million in the last 12 months
IAG, one of New Zealand's leading insurance providers has drawn a line in the sand with regards to claims around Meth-contaminated properties and in our opinion, it leads us a step closer to compulsory Meth Testing for all residential rental properties in New Zealand.
As we return to work from our Christmas and New Year break, many of us will be wondering what will lie ahead for us in 2017.
As this turbulent year ends, we will look at some of the key events that have changed our industry and two issues stick out like a sore thumb, much to the detriment of the landlord. Methamphetamine and the Osaki Tribunal Case.
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