Alert Level 2 has meant the easing of restrictions and a return to business as usual for our property managers, with some changes:• Routine inspections can take place during Alert Level 2 with additional hygiene practices and physical distancing.• Open homes of vacant properties are allowed with additional hygiene

and contact tracing practices, and physical distancing of 2m between bubbles to be maintained at all times.• For property viewings, if a property is tenanted, the consent of the tenant is required to hold a rental viewing. Tenant permission cannot be unreasonably withheld, as per the Residential Tenancies Act 1986.

• Repairs and maintenance can be performed, and tradespeople will comply with health requirements and any Government guidance issued pertaining to their industry.

Harcourts is New Zealand’s largest and most trusted real estate group*, with over 2,280 sales consultants across 195 offices and a growing property management team. For more information visit www.harcourts.co.nz. While every effort has been made to ensure that the information in the publication is accurate we recommend that before relying on this information you seek independent specialist advice. *Readers Digest Most Trusted Brand Survey 2013-2019.

Property Management FocusBringing you news from the world of New Zealand property management.

ISSUE 5 // 2020

During turbulent times, the naysayers always come out crying “the sky is falling”, or words to that effect, in regard to price prospects, creating angst amongst those less experienced or more financially exposed.

My suggestion is to look at the facts as they relate to property and its performance over history and during challenging periods.

Put simply, most property owners, investors and owner occupiers do not buy property on a whim, they buy for long term investment or to provide a home for themselves and their families. Short term fluctuations in “value” really have no impact and, based on history,

any impact from the negative events we currently face is likely to be just that – short term. Take a look at the graphs from the Canterbury earthquakes and the Global Financial Crisis as the most recent and relevant reference points.

The other significant “fact” right now is the low mortgage interest rates we enjoy. Yes, there are significant financial challenges for many due to the economic impact of COVID-19, but with interest rates at 3% or below, holding costs through these challenging times are lower than any other time in our history. Low mortgage interest rates will help many to avoid pressured sales and equally they will assist buyers to continue their acquisition plans.

Our market, in almost every location, continues to see an excess of demand when compared to new stock coming forward. Good opportunities exist for sellers right now, and for buyers you, as always, need to be prepared and ready to act. The property of the year comes along almost every day.

Regardless of your position in the market, it would be difficult to find a better investment right now than New Zealand real estate - but then I am a real estate agent!

Bryan ThomsonHarcourts Managing Director

Everyone loves to talk, debate, and most often speculate on the current and future direction of the real estate market, nobody more so than an engaged property investor and never more so than right now!

Is now a good time to invest in property?

Alert Level 2 – Business as usual (almost)

Our offices are open for business with additional hygiene, physical distancing and contact tracing practices in place during Alert Level 2.

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Harcourts is New Zealand’s largest and most trusted real estate group*, with over 2,280 sales consultants across 195 offices and a growing property management team. For more information visit www.harcourts.co.nz. While every effort has been made to ensure that the information in the publication is accurate we recommend that before relying on this information you seek independent specialist advice. *Readers Digest Most Trusted Brand Survey 2013-2019.

Important Clarification - Rent FreezeLandlords can issue a notice to increase rent before the conclusion of the rent freeze legislation. The legislation only prohibits the actual increase, not giving notice of a rent increase. The rent freeze provisions are in force for a period of six months from 26 March 2020 and, unlike the three-month initial period limiting termination grounds, would require new legislation to extend the rent freeze period. This means that landlords and property managers can issue a rent increase notice with the increase to take effect from 27 September 2020. Note that if new legislation is passed to extend the rent freeze, it is anticipated that any rent increase notices served would then be of no effect.

2019 Tenancy Services Renting and You Roadshow – FAQ’s

This statement is a declaration of the property’s current level of compliance and does not mean that landlords need to have met the healthy homes standards by this date. However, from 1 July 2021 landlords must ensure their rental properties comply with all healthy homes standards within 90 days of any new or renewed tenancy. From 1 July 2024, all rental properties must comply with the healthy homes standards. Harcourts encourages landlords to meet the healthy homes standards by 1 July 2021 or risk tenants moving to warmer, drier homes and leaving the landlord with only 90 days to meet all standards. Landlords in this position are at risk of

facing extended vacancy periods as they will be competing with properties that meet the standards.REINZ is calling for an extension to the healthy homes deadline as there is a high likelihood the next deadline will be missed by a number of landlords due to COVID-19.Bindi Norwell, Chief Executive at REINZ says: “Before the country went in lockdown on Thursday 26 March, landlords and property managers across the country were working hard to meet the 1 July deadline.”“However, since lockdown, landlords and property managers have been

unable to access rental properties to allow qualified tradespeople to complete compliance statements. As inspections are required by either qualified tradespeople or people with ‘sufficient, relevant experience’ it now means there is a backlog of properties to be assessed and therefore, that Compliance Statements may be unable to be completed by the deadline causing delays to a tenancy commencing,” she continues.CLICK HERE to read the full press release.Source: REINZ

Healthy homes compliance date – 1 July 2020From 1 July 2020 landlords must include a statement of their current level of compliance with the healthy homes standards in any new, varied or renewed tenancy agreement.

In 2019, Tenancy Services ran a series of seminars throughout the country known as the 2019 Renting and You Roadshow where they presented information on the healthy homes standards 2019 and the Residential Tenancies Amendment Act 2019.There was a high level of interest in the

seminars and they were well attended by landlords and property managers throughout New Zealand. As you would expect, not all questions could be answered on the day, so Tenancy Services have produced a summary of the questions and answers, along with other frequently asked questions, in their summary.

Reading the summary from Tenancy Services will help you understand what rights and responsibilities landlords and tenants have under the new pieces of tenancy legislation.CLICK HERE to find out more.