Harcourts Property Management Kaikoura New Zealand. Harcourts Kaikoura

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1 Harcourts Property Management Kaikoura New Zealand Harcourts Kaikoura Marlborough Real Estate 2008 Ltd 94Beach Road, Kaikoura 7300 P E enquiries.kaikoura@harcourts.co.nz

2 Thank you for the opportunity to submit the Harcourts package to you for your consideration. Included in my package is what our office can do for you in offering you piece of mind and a stress free environment as a property owner. Harcourts Property Management prides itself on the professionalism and responsibility in looking after their existing property portfolio. The booklet outlays clearly the credibility and confidence you can have by choosing to have your property managed by us. Michelle McClelland Property Manager Michelle McClelland Anne Macphail

3 Experience The Difference The Harcourts Property Management team manage an investment portfolio of Marlborough properties valued at more than one hundred and forty million dollars. An average occupancy rate of more than 97% for properties A constantly increasing portfolio of managed properties with a selection of homes ranging from residential units, rural homes. A well managed rent collection process, with automatic payment for ease of payment. Professional trade agreements with sub-contractors to ensure they adhere to our high standards, confidentiality agreements and hourly rate changes. Regular communication with property owners with written inspection reports, phone calls and newsletters highlighting current market trends, national head lines and releases from the Department of Building and Housing. MAXIMISE YOUR RETURNS. MINIMISE YOUR STRESS. SECURE YOUR FUTURE.

4 Credibility We are a locally owned business with a proud local history. We operate the latest Property Management software. Staff have an investment property interest of their own and have also been Tenants. Harcourts currently have over 450 offices and 3000 property professionals throughout New Zealand, Australia, China, Fiji, Indonesia, Singapore and Zambia Confidence Our telephones are answered 24 hours a day.???? Tenants rent payments are held in a registered non interest earning trust account that is audited no less than 3 times a year by an independent charted accountant. Our sub contractors are selected for their ability to provide excellent service and value for money. Their response time, standard of work and invoice charges are all strictly monitored. We ensure strict adherence to Property Management best practice policies with regular management reviews of systems and procedures.

5 Our Rates Property Inspection fees ZERO Associated tenancy Tribunal fees ZERO Marketing fees ZERO Credit check fees ZERO Reporting fees ZERO Mediation attendance fees ZERO Tenancy reference checks fees ZERO Commission for repairs and maintenance 5% (limited to a maximum of $50 per job) Commission on rents collected 10% Our fees are exclusive of Goods and Service Tax (GST)

6 Knowing what we include It is important to know what services are included. After preparing your budget, getting charged additional fees for inspections can have detrimental effects on your cash flow. Having piece of mind knowing that everything is taken care of is important and all part of minimising your stress. Tenants rent payments are paid to your nominated bank account once a month with a full financial statement sent to you at month end. At the end of the financial year we will send a complete 12 month summary to you detailing all your income and expenditure. We physically visit the property every twelve weeks, completing four inspections in a twelve month period. Any maintenance issues identified during these inspections, or those raised by the tenants, will be addressed either by contacting you if substantial or specialist work is required, or (with your prior agreement) a tradesperson will be asked to carry out the repairs and/or maintenance up to an agreed amount. We will contact you if a repair exceeds the agreed limit unless it is an emergency (e.g. electrical or plumbing). We complete a friendly one month bonus inspection once a new tenant moves in, this establishes that the move in has gone smoothly and that there are no issues that we should be aware of. A full comprehensive property condition report is carried out before we tenant the property, including types of light fittings, carpets, wet areas and curtains. This tool is used for the end of tenancy so that there is no dispute. Photo graphs are taken of wear areas so a record is established.

7 We complete: Tenant interview with a trained property manager Income and employment confirmation for prospective tenant Reference checks for prospective tenants. Tenants are checked & vetted through TINZ One search does it all!! Credit checks include information, in real time, from 5 sources:... T.I.N.Z. (Tenancy Information NZ) defaults, 14 day notices, ratings, Verbal/physical abuse/drug abuse warnings, and photos from our own members Ministry of Justice, Tenancy Tribunal orders The C.I.A. Debt Recovery Group Ltd VEDA ADVANTAGE (previously BAYCORP) LTNZ Drivers License national database MOJ Fines database Included in our fee is advertising for the property utilising high profile mediums like Trade Me, our popular local paper, the Harcourts website and displayed in our window. Bond lodgement with Department of Building and Housing and all other relevant requirements as regulated under the Tenancy Act. We take responsibility for the tenants we place in your property, if we are required to end the tenancy arrangement due to the tenants failure to comply with our standards, we will cover all tribunal costs of filing and mediation time to end the tenancy. Our management fee is 10% + GST. Multiple property owners will receive a discounted fee based on total gross rental income.

8 What You Need To Rent Your House Out We need to arrange a free, no obligation visit to your property. We will discuss our services and advise you on the expected market rental and any requirements your property may need before letting. We can also discuss any particular restrictions that you wish to apply to your property. It is important when setting the rent that it is set to a level that is fair and reasonable and is market rent. We can bring a list of comparable properties to qualify the rent assessment we give. When you have made the decision to rent out your home, it needs to be thoroughly cleaned and gardens tided to make it attractive to the prospective tenants and to encourage them to keep it in the same condition during their tenancy. We recommend that you consider the following points: Have the carpets commercially cleaned Wash the windows inside and out Touch up paintwork if required and wash down walls Wash off any fly spots and we recommend installing an insect repellent dispenser. Leave all services clean and tidy Fix up any maintenance issues that are outstanding Remove all rubbish from the garden, garage and section Fill any gas bottles if required. All of this can be arranged by our trades people if this assists in anyway. All our tradespersons work to a supplier agreements and are fully insured.

9 During the tenancy, the garden and lawns are the responsibility of the tenant. This is with the exception of the very first mow of the lawn at the beginning of the tenancy, when this is the property owner s responsibility. If you have a large garden or one that does require a green finger touch, we recommend that the lawns and gardens are professionally tended too and this additional cost be reflected in the rent. You will need to give us two full sets of keys, you are most welcome to hold onto a set, but remember it will become someone else s home, so there is a need to follow the guidelines as set down by the Department of Building and Housing. The tenant will organise setting up the power account and a new phone account. It is very important to make sure you are correctly insured and your insurance policy reflects that your property is going to be rented. There is a difference between owner occupied and tenanted. We are happy to clarify any questions you may have and cannot stress enough the importance of making sure you are covered. You may have questions regarding what you should do and we are here to help, our representative will assess and suggest any improvements or changes that may influence the occupancy level and rental rate that can be charged. A large part of promoting your property is to achieve a great tenant and good rent levels to maximise your returns. This is one of the benefits of using Harcourts Property Management. We have a large database of potential tenants and this is our first port of call. We also utilise the internet with a listing on our main Harcourts site and on Trade Me. Every week we run a listing in the local paper.... And the cost for all this...none, zip, zero... its included in the management fee!

10 How We Collect Rent The vast majority of our tenants have automatic payments set up which are monitored daily. Failure to pay rent will be followed up immediately with a txt message or phone call requesting the situation be remedied. If the tenant fails to rectify the situation your property manager implements the correct procedures are followed in order to have the situation rectified at minimal disruption to the property owner. Occupancy Rates Our occupancy rates are one of the highest in the country, and while the market can determine levels, we are proud of the energy and commitment our team puts into ensuring properties are occupied to the maximum levels. This is also where the market dominance of the Harcourts brand gives us the advantage and is a reassurance to you as a property owner that we aim for 100% occupancy of all our properties.

11 Selecting The Right Tenant We have an application form that must be filled out and once completed the applicant is interviewed by a property manager. We use our vast experience to select suitable tenants. Prospective tenants will need to provide: References Work History Present employment or income In some cases proof of income Photo identification Proof of visa or residence if from overseas Pass a credit check via our professional credit check agency. Our View On Pets We encourage you to keep an open mind and we are happy to discuss this with you. What you must remember is that you are renting out your property to another family who want to call it their home and many families have a pet. Some properties do not suit animals and that is fine, if you do not want pets, we instruct this on the property file. If you are undecided and it depends on the animal and or the type of tenant then we will get in contact withy you before committing either way.

12 The Difference Between Fixed and Periodic? We start almost all our tenancy agreements with a 6 month fixed term which gives security to all parties. We need both the tenant and the property owners in agreement to commit to a further fixed term. If this can not be reached the tenancy will roll to a periodic term. Fixed Term: The tenant signs the tenancy agreement to a set time period. For the duration of this period they are legally obligated to pay rent at the rent rate agreed upon when signing the agreement. We need to advise however, that the tenant can make an application to Tenancy Services sighting hardship to break the agreement. Periodic Term: The tenant can at any time give 21 days notice to end the tenancy, this needs to be completed in writing and the tenant does not need to give a reason. This allows you as the property owner more flexibility to gain possession of the property.

13 What people have been saying... Dear Michelle On behalf of my partner and I, we would like to sincerely thank you for the excellent service that yourself and the Harcourts Kaikoura team have provided us as our property managers. The continuous, prompt and regular reports and payments enabled us to keep good financial control on our investment as well as being fully informed of factors that may have effected our asset. Tenant sourcing and vetting seemed to be not problem to you with your extensive local information resource always providing the most suitable of reliable and caring tenants. When items did need attention you always managed to come up with the most reliable and cost effective of tradesmen that appreciated the constraints of working in other peoples homes. From discussions with our tenants they always spoke highly of your efficiency and detail to attention, this only inspired our confidence that we had chosen the right property manger. Once again than you ever so much for the excellent service. Bruce Levey, Christchurch March 2013 Thanks for the . I am looking forward to having you manage my property. Your professionalism so far is a breath of fresh air with what I have had to deal with in the past. Thanks Very Much. Graeme Hislop, Australia 29th September 2011 Hello Michelle and thank you for the April Statement. Hope all is continuing to go well for the new parents, have they signed another letting agreement? Have to say congratulations to you again!! Well done for getting top Property manager award and we have enjoyed reading about your biking. Sending our best wishes, Shirley and Nigel Blomfield, United Kingdom, April 2011

14 What people have been saying continued... Hello Mr Davis My name is Andrew Fitzgerald and I don t do this normally, but I wanted to bring your attention to the extraordinarily good job an associate of yours is doing for me and my wife Karen, who own a house in Kaikoura. Since we re 1000 s of kilometres away in the US at the moment, it means a lot to us that someone we ve never met and who represents our property is so diligent, personable, and enthusiastic. The house is not big or particularly flasth, but Mihcelle is treating it as though it were hers. I get the impression she really cares about the place and the people who rent it. Since losing our tenants a few weeks ago, Michelle has updated us regularly on her efforts to find and qualify new prospects... Not to mention raising the rent to fair market value. She has responded to my questions and concerns about maintenance, sent photos of problem areas, and has worked to help us upgrade key aspects of the house. It s obvious she really enjoys helping clients and takes a lot of pride in what she does. Even though the place isn t rented just yet (although hopefully that s imminent, and I assure you Michelle isn t paying me to say this), I can tell you she is very good and does Harcourts proud. Andrew and Karen Fitzgerald, USA

15 Staff Profiles Michelle McClelland Property Manager Mobile Michelle is an integral part of the Harcourts office. Highly energetic, positive and always looking for new opportunities in her role as property manager. She manages her property portfolios with both energy and enthusiasm. She brings a breath of fresh air into the office with her creativity and sense of humour and has received some great testimonials and grateful gifts form clients. Anne Macphail Property Management Mobile Anne joined Harcourts in December 2012 and is excited to be part of the team. Anne has a background in banking and has owned her own rental property so knows the importance of having good tenants. Anne is dedicated to providing a high level of professional services to owners and helping them to protect their investment.

16 Residential Tenancies Act 1986 Residential tenancies are regulated by the Residential Tenancies Act, which came into force in 1987 and subsequent amendments. This legislation provides the following: All disputes concerning residential tenancies must be referred to a Government Body. The Tenancy Tribunal, whose decisions are binding and enforceable. Bonds can be taken from tenants. These bonds must be paid to a Government Bond Centre. If at the end of a tenancy there is rent outstanding or repairs or cleaning required, as a result of tenant negligence, the landlord can apply for all or part of the bond. The Tenancy Tribunal will decide how the bond should be paid. We must lodge this with the bond centre within 23 working days. No more than 4 weeks bond may be charged, we recommend a bond equal to four weeks rent be held. The Tenancy Tribunal will allow tenants to terminate fixed term tenancies early if they have personal difficulties. Periodic Tenancies, requires the owner to give the tenant by notice 90 days notice of termination unless the property has been sold or the owner intends to occupy it. In these cases 42 days notice is required. A tenant is required to give 21 days notice, where the landlord requires the premises for the occupation by the landlord or any member of the landlord s family days. For occupation of landlord employees...42days. Where the landlord has agreed to sell and yield with vacant possession days In all other cases 90 days. The tenant must be notified in writing when the owner intends to sell the property. The tenant must be given 42 days notice to vacate once the sale of a property is unconditional. The act requires tenants to be given certain notice before the Landlord can enter and inspect the property to carry out an inspection. THE TRIBUNAL FROWNS ON BREACHES OF THIS REQUIREMENT AND QUITE SUBSTAN- TIAL FINES CAN BE IMPOSED. The tenant shall be entitled to have quiet enjoyment of the premises without interruption by the landlord or any person claiming by, through, or under the landlord or having superior title to the landlord. The landlord shall not cause or permit any interference with the reasonable peace, comfort or privacy of the tenant. In respect to the above circumstances that amount to harassment of the tenant is declared unlawful.

17 The landlord shall not enter the premises except; With the consent of the tenant OR In any case of an emergency The purpose of inspection between 8.00am and 7.00pm With no less than 48 hours notice nor not more than 14 days notice Not more frequent than once in any 4 week period At least 24 hours must be given for any necessary maintenance issues For the purpose of showing the premises to prospective tenants or to prospective purchasers, or to a registered value engaged in the preparation of a report, the landlord may with prior consent of the tenant and subject to reasonable conditions enter the premises at any reasonable time. The tenant is entitled to place conditions on that consent. The rental management team must be contacted and given prior knowledge before any contact is made with tenants. The tenant must be notified before people can be shown through a property. This can make selling a tenanted property a little awkward. Notwithstanding, the landlord shall not use force or threat or attempt to enter the premises while the tenant or any other person with the permission of the tenant is in the premises. Rental values can only be increased in 6 monthly intervals and the tenant must be given at least 60 days notice of the increase. Rents, a landlord cannot charge more than 2 weeks rent in advance. We cannot charge a substantial amount more than the market rent. Rent cannot increase in a fixed term tenancy. Tenants pay all power and telephone charges, including connection fees. Water charges are payable by the tenant where each dwelling is individually metered but the landlord must pay for any special reading required at the commencement or termination of a tenancy. Waste water charges are the responsibility of the Landlord. Where a mortgage becomes entitled to possession of the premises, the tenant has the right to occupy; the mortgagee has all the rights of the landlord, and is required to go through the tenancy agreement to remove the tenant.