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November 2018
Welcome to the second monthly newsletter from Rentals.co. We're here to listen and keep you informed. We take care of properties and keep our community up to date on industry news and insights.


Want to know which parts of a property increase in value the most?

Buying a home in order to get an investment return: is it guaranteed to make a profit? You’ll be amazed how bathrooms, kitchens and closets make all the difference. Al Inglis of Rentals.co Whangarei is an expert in property management and development. He notes new housing developments occasionally have shortcomings in their location but they’re pretty much guaranteed to have an impressive kitchen and bathroom.

Click on through to our blog for the full story


AirBNB: Not Worth It

Sure, there's the idea that AirBNB is a great way to make a quick buck on a spare room - but good things in life take time. AirBNB’s MarketMinder report suggests the average daily rate commanded by Northland’s 506 active rentals in the Whangarei District fluctuates between $100-$140. However, there was an occupancy rate of only 35 per cent for many properties many weeks.

In the Far North district, they can command an average daily rate of $150, but occupancy of 23%. There are far more hosts up north, interestingly, with 661 active hosts registered with AirBNB. Median weekly rent in Whangarei has hit $400, as has Kaipara, and it’s hit $370 in the Far North. So anyone who wants to rent out their place would need to achieve about 2.5 nights of occupancy each week and charge an average of $150 a time to meet the median. Having three different sets of tenants each week is a headache few landlords have time for.

When a house you own is used as an AirBNB holiday rental, you’re not covered by the Residential Tenancies Act.

Long story short: stick with the experts. Rentals.co handle hundreds of properties and can advise on when decisions are short term gains or beneficial long-term.

Click on through to our blog for the full story


Want an online tool to help you find the right rental revenue?

If you're hunting for an investment property, one way to begin the search is to use one of the online suburb-seeking tools offered by banks to speed up the process of identifying which suburbs you have the most buying power in.

For example, at www.suburbseeker.asb.co.nz, you simply enter in your budget (type in the amount you have, the amount you can borrow, or the amount you expect to sell your house for) then select the suburb you’d like to buy in. The software will return an estimation of what percentage of properties you can buy in the suburb with your budget, what the median value is, and how much and how often property values change there. For example, type in that you have $1,000,000 to spend in Otangarei and Suburb Seeker says you can afford 100% of properties there. However that same million lets a person afford fewer than a quarter of the properties in Remuera – where the median property price is given as $1.75m. Basically, look out for a nice high affordability percentage (50-100 percent) and that tells you the ideal places to buy.

Click on through to our blog for the full story


Legal stuff for Landlords - The Rules Around Raising Rent

It’s not always easy being a landlord, which is why Northland property management and development experts Rentals.co are here to smooth the process. Any landlord wishing to get the mortgage paid off in 20 years instead of 30 will need to match a suitable rent price point with reliable, long-term tenants, as well as budget for the property manager’s fee, which tends to be 10-15% of weekly rent.
And now, the rules:

  • Landlords can increase rent if the tenancy agreement allows this.
  • Landlords must take into account the type of tenancy, a notice period, and market rents.
  • The landlord can increase the bond at the same time as the rent.
  • Landlords can only increase rent after the first 180 days of the tenancy
  • For a fixed-term tenancy, landlords can only increase rent if there is a provision to do so in the fixed-term tenancy agreement.
  • A landlord must give a tenant no less than 60 days’ written notice of a rent increase.
  • The notice must be served in writing, say how much the rent is increasing by and the day the increased rent is due.
  • Returning to normal rent after a landlord has reduced it for a while is not a rent increase.
  • The law doesn’t limit the amount of a rent increase, but does say how it must be done, and what can be done if the tenant doesn’t agree with the new rent amount. If a landlord is charging significantly more than for other similar properties, the Tenancy Tribunal could make an order for it to be reduced (The tenant would need to provide evidence that their rent is substantially higher than rent for other houses in the area similar to the one they’re renting)
  • A landlord and tenant can agree to an increase of the rent (outside of the usual 180-day period) if the landlord has improved the property, which increases its value and benefits the tenant
Learn about Rentals.co landlord services


Deadline Update - Have you remembered to insulate before it's too late? 

We would hate to see our lovely landlords get told off for not complying with new insulation requirements for rental homes. A landlord who fails to comply with the regulations will be committing an unlawful act and may be liable for a penalty of up to $4,000.

All your answers can be found clicking through: 

Watch the latest snippert on tenancy.co.nz


How We Excel Online and Manage High Demand For Rental Properties

Beginning with a very 21st century name and logo, Rentals.co has strived to be digitally savvy.

Visit our website rentalexperts.co.nz

New premises, new services, same expertise


Located at 9-11 Reyburn Street in downtown Whangarei, Rentals.co has begun taking care of rental properties previously managed by Judy Morgan and First Rentals.
09 459 7139  |  info@rentalexperts.co.nz  |  www.rentalexperts.co.nz
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