This book is for you if are considering renting out your home. Alternatively, in you have a rental property, investment property and particularly live in Palmerston North, Feilding and/or Manawatu - this is for you. A house to rent shouldn't be stressful. Property Management with Watson Real Estate is a top option. Earn more from your investment while reducing your risk.

RESIDENTIAL PROPERTY MANAGEMENT GUIDE
RESIDENTIAL PROPERTY MANAGEMENT GUIDE
watson “Winning multiple national awards really sets our property management team apart as one of the best in New Zealand.” Greg Watson Owner and Property Management Director To watch our Promotional Video scan this QR Code: 2
watson     Winning multiple national awards really sets our property management team apart as one of the best in New Zeala...
watson Welcome to Watsons Complete Residential Property Management Guide Watson Real Estate Agents and Property Managers offer a unique approach to property in the Palmerston North and greater Manawatu region As an independent, locally-owned and managed “At Watsons, we value our reputation for integrity, trust, and excellent results.” company, we not only have a personal understanding of the regional property market, but also the freedom and flexibility to ensure that your needs come first. At Watsons, we value our reputation for integrity, trust and excellent results. We have an absolute commitment to the highest standards of business ethics, strong community links and a tradition of putting your needs before our own. AWARD WINNING ADVANTAGE We are the first Property Management office in New Zealand to take home three REINZ awards in one year, a feat we have now repeated. The REINZ Awards recognise excellence and best practice in the property management sector. Franchises and independent offices across New Zealand compete for these prestigious awards, which are judged by an independent panel Winners are selected based on multiple criteria, including quality of customer service, level of industry expertise, innovation, and commitment to professional ethical standards. We at Watson feel very proud to have taken the title of office of the year at the REINZ awards twice, the only company to do so. 3
watson  Welcome to Watsons Complete Residential Property Management Guide Watson Real Estate Agents and Property Managers ...
watson Specialising in outstanding Service The key benefits Watson Property CONFIDENTIALITY Watson Property Management recognise the Management offers to clients are: importance of maintaining the strictest confidentiality THE BRAND of client information and implements procedures to We are a locally owned and operated family company provide safeguards. with a commitment to provide the highest level of CONTROLLED MANAGEMENT service at all times. Our procedures prescribe a structure for management PEOPLE of quality, process control and achievement of Ultimately, our people are our key point of difference. client expectations. Our Residential Property Management team focus on being ‘brilliant at the basics’ with a commitment to staff training, resources and innovation, while never losing sight of the fact that communication with both property owners and tenants is the key to growing our clientele. LONG-TERM RELATIONSHIPS We pride ourselves on the fact that we keep our clients. It is a result of the high level of service we provide that guarantees customer satisfaction. PARTNERSHIP “When you win as a team, you know you are working with the best.” The foundation of our business is to work in “partnership” with our clients. In that way you are assured of our understanding your goals. PERFORMANCE Property is our lifetime business. We aim to deliver measurable performance and economic benefit as a direct result of the service we provide. Phil Giles Property Manager 4
watson  Specialising in outstanding Service The key benefits Watson Property  CONFIDENTIALITY Watson Property Management r...
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watson Understanding your requirements We understand when you are choosing a Property Manager you require experience, the ability to co-ordinate and control delivery of services to ensure consistency and high quality service at all levels. “I believe we are the best in our industry, and our service reflects that.” We believe your objectives would include the following:  A strong business focus  A high level of communication at all times from Watson Property Management to ensure that you are fully informed on all matters in relation to your property portfolio  Access to specialist capabilities  Provision of accurate timely financial information  Maximising the efficiency and returns of your property assets   Maintaining a high level of property presentation  Chris Prentice Ensuring tenant satisfaction and retention Minimising vacancies  Building strong tenant relationships Property Manager While achieving these objectives, the service provider must provide:  Guarantee of service  Responsiveness at all times to your requirements/requests  Accurate and timely reporting  Access to specialist insurance You may have some special requirements of us. We welcome the opportunity to discuss these with us. 7
watson  Understanding your requirements We understand when you are choosing a Property Manager you require experience, the...
watson 8 Our people, staff training, backup and management support Watson Property Management is 100% focused on delivering service to our management clients. Our Property Management team are actively supported by senior management. Our Property Management team is structured to provide cover when staff are on leave, ensuring that your interests are overseen 52 weeks of the year. We have engaged John Crocker in a consultancy / mentoring role with our company. John is one of “I am proud to be leading such a strong team committed to success and providing exceptional service.” the foremost experts in Property Management in New Zealand, with over 30 year’s experience. He is available to us on a daily basis to discuss and advise on any difficult tenancy related issues. This enables our team to go into negotiations with absolute confidence and the knowledge to seek Jenny Parry the best possible resolution for our clients. Divisional Manager John is available to run training sessions with Jenny Parry our Divisional Manager has 7 years of our team on a regular basis. experience in the property management field. She is in the front line right along with our property Greg Watson our Property Management Director managers and deals with any problems that might has been in Property management for over 15 years . arise by talking through any issues at hand. With With his wealth of experience he leads the property her knowledge she leads the team to do great management division with integrity and a wealth of things and always offers the service with a smile. If knowledge. He is always available to answer team you need further advice to what your property members questions and strives to pass manager can provide, just talk to Jenny she is always his knowledge on to the property willing to help and has the experience to solve management team. the tricky issues
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watson 10 Marketing your house We focus on delivering quality tenants to DIRECT MARKETING STRATEGIES our Property Management clients through Watson Real Estate has contacts within many organisations our marketing systems and rigorous tenant selection procedures. We expose our properties through the following channels: INTERNET ADVERTISING—A 24 HOUR RESOURCE TO MARKET YOUR PROPERTY Being online enables us to present your property in video or photo form on 24/7 basis. Further, as soon as a tenant gives notice we can display your property immediately, maximising exposure to the market before the property is vacant. We use video tours of your property online so that we know when a prospective tenant books to view your home they will be more likely to rent it. This service is also ideal for out of town tenants looking to move to the Manawatu, it means they can view the property 24/7. Prospective tenants have the benefit through our website to book viewings online at a time that suits them. We utilise the services of the two most popular internet web sites for people looking for rental property. Specifically, we use www.realestate.co.nz and our own popular website www.watsonproperty.co.nz. The internet is the medium of choice for Real Estate consumers when searching for a property to rent or buy, and is now a very important part of our marketing strategy. The internet has far superseded print media, for enquiry levels. Your video will be both on our website as well as the ever popular Watson YouTube channel. and businesses involved in bringing future tenants into this area. It is important to target these areas directly to find the best quality tenants, who have usually been vetted at least once before we meet them. We work with recruitment agentcies, hospital staff, university staff, the Palmerston North information centre, as well as many others. Our role is to assist by sourcing and securing quality rental accommodation for these clients. We email out weekly, details of our available properties, with links for future tenants to view online. We also place fliers in local supermarkets. DATABASE OF TENANTS Potential tenants are able to submit their requirements via our website or by visiting our office. These inquiries are logged and, where possible, matched with available properties. WALK-IN INQUIRIES Our reputation in the market place means we receive a great deal of walk-in inquiry from people searching for a property to rent. To assist with the strategy we have rental listings in a convenient holder on the exterior of our building. They can be uplifted 24 hours a day 7 days a week, and uniquely contain colour photos of the homes. Our front office staff are always available during working hours and are well skilled and trained to help with any enquiry. LOCAL MEDIA ADVERTISING The Manawatu Evening Standard is read by 49,000 people on any typical day. When necessary, we advertise your property in the classified section, to enable more coverage. We also advertise in the Feilding Herald.
watson  10  Marketing your house We focus on delivering quality tenants to  DIRECT MARKETING STRATEGIES  our Property Mana...
watson Selecting the right tenant A major advantage of using Watson Real FINANCIAL HISTORY CHECK, TENANCY HISTORY CHECKS Estate Ltd, is our ability to reduce risk for our The financial and credit history of the applicants is owner clients, by a combination of experience and comprehensive tenant checks. FIRST IMPRESSIONS Property Managers at Watson Real Estate meet hundreds of groups of potential tenants per year. Our selection process starts by forming impressions, based on experience, when we first meet and show people through your home. We make sure to always have a member of staff show the prospective tenant through your home, this is all part of our tenant selection process. OUR APPLICATION FORM If potential tenants are interested in applying to rent your home, we have them fill out our comprehensive Tenancy Application Form. This gives us details of their personal and business situations, reference details and authorises us to do a number of background checks. We also now offer an online application form which allows tenants to apply for your home 24/7. REFERENCE CHECKS The application form has provisions for six referees, comprising of workplace, personal/business contacts, and the previous two landlords (if they have been renting). Our staff contact these referees to ask pertinent questions to help reduce the risk of any future problems. We always take a copy of a photo ID as well as record next of kin details to ensure we always have a point of contact. examined using Veda (formerly known as Baycorp). The applicants also give permission for Watson Real Estate to check their renting history through the National Tenancy Database (available to members of the Real Estate Institute of New Zealand), TINZ (Tenancy Information New Zealand – a 3rd party), and to view any previous rulings through the Tenancy Tribunal for non-payment or bad behaviour. INTERVIEWING POTENTIAL TENANTS Whenever possible, applicants are interviewed by property management staff, to help ensure we get the ‘right fit’ of people to your property. We discuss with them a number of issues particular to your property including your requests on pets, lawns, gardens and smoking. OUR ‘RULE OF THUMB’ Our property managers work with the same viewpoint which leads to our rule of thumb. At the end of the application and interview process, we ask ourselves this question. “If this property was mine, would I put these people into it?”. If the answer is “Not sure” or “No” then we won’t put them in, and continue looking for others. If the answer is “Yes”, then we will. 11
watson  Selecting the right tenant A major advantage of using Watson Real  FINANCIAL HISTORY CHECK, TENANCY HISTORY CHECKS...
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watson 13 Rent Collection & Financial Reporting Timely collection of income is paramount to successful property management. Watson Real Estate has strong systems and procedures in place to ensure that rent is collected on time and that any missed rental payments are promptly pursued. We have a zero tolerance to rent arrears policy in place to make sure if rent is missed we are taking steps right away to rectify it. All funds are held in a non-interest bearing trust account which is independently audited. “The training at Watson is comprehensive and on-going and I believe we are one of the best teams in the country because of it.” Funds are direct credited into your account on a fortnightly or monthly basis with statements being simultaneously emailed to yourself and/or a nominated party. The amount of rent paid for your property is reviewed every six months formally, in order to help maximise your investment return. Your property can be valued by our sales team so you can monitor your capital growth, for future re-sale or lending. Maree Sullivan Property Manager
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watson 14 How we care for your house It is important that maintenance issues are attended to promptly in order to:  Maintain the capital value of your property  Prevent minor problems escalating  Keep your customers, the tenants, happy with their home Maintenance inspections are carried out three times per “Being part of an award winning team helps me to strive to be successful.” year. These are focused on proactively ensuring that the property is kept in an attractive and well maintained condition, and to ensure that your tenants are caring for your asset appropriately. As part of this process we communicate with you after our inspection, and in cases of major work we can also email you digital photographs or video of your property to give you a visual appreciation of any issues we may have identified. We have a handy man who works only for us. Rebecca Lui Property Manager This allows us to provide you with very good value and service for your general maintenance work. We have strong relationships with a selected number of contractors who perform work of a more technical nature at competitive prices including a plumber and electrician In addition we prepare a detailed Pre-Tenancy Inspection Report for each new tenant. This clearly sets out the condition of your property at the commencement of a tenancy with both photographs and a video.
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watson 16 Important insurance information Many standard insurance policies do not returned to you is a court imposed ‘drip feed’ over a cover the specific risks often associated with long period of time. Clients with landlord insurance receive a rental properties such as malicious damage or theft by tenants and their guests. lump sum payout, instead of a trickle of funds, and again, we believe extra insurance is a wise option. We also suggest that if possible you talk to your building Watson Real Estate is a member of the Real Estate Institute of New Zealand. We can offer access to the insurance policy available through Real Landlord insurer and arrange no excess on windows, drains, and sanitary. Note: Insurance on a rental property is a tax deductible expense. Insurance Ltd. This is a very comprehensive policy and can only be obtained through a property management company which meets strict criteria. At Watson Real Estate our opinion is that this is a very strong policy, however we would encourage you to talk to your insurance company or broker about options available to you. It is important to note that such specialised insurance “Winning multiple national awards goes to show that you don’t have to be the biggest to be the best. It’s all about service.” for landlord situations are complimentary to your existing house insurance and do not replace it. Our opinion is that the minimum for a prudent landlord would be coverage for loss of rent, malicious damage and legal liability. However, as per any insurance policy, the choice of whether to be insured or not is Joanne Sullivan up to you. Property Management Administrator At Watson Real Estate we are very good at catching up with tenants who owe rent or money for repairs. However, this is a lengthy process and often money
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watson 19 What our clients say... “I have used Watsons Property Management Team for “Your team continues to provide an excellent service, a number of years now, after using others to manage ensuring we don’t even need to think about our my rentals. I find them to be far superior in all aspects investment property”. of property management matters. As a property in- R & E Connolly (owner) vestor I require answers and full occupancy. This team does this and I believe, goes beyond. “ “I had seen about 8 houses before I could decide on one Ross Campbell (owner) finally. I must say that among all the agents that I interacted with, my experience with you was the best. You “I have found Watsons to be a an extremely profession were cordial, accommodating, very receptive to client al organisation who know their industry very well and needs and most important (for a newcomer like me), ac- give an outstanding level of service both initially and tually took the care to get back to me irrespective of the with the on-going management of the properties they outcome. In future whenever I need to change house I look after. I have found them to be very thorough and will surely contact you once again.” the timeliness and level of communication is excellent. Sameer Atre (prospective tenant) All of the staff there are a pleasure to deal with and they are the only team I would want looking after my assets!” Nathan Ryba (owner) “Living in Nelson while having rental investment properties in Palmerston North gives rise to practical “I cant speak more highly of the team at Watson Integrity property management. They are all professional in their approach which gives me confidence my property will be well cared for. I particularly appreciate the communication from my property manager, I am well informed of any difficulties. Consequently it has been tremendously changes or issues in a timely manner and they are solutions satisfying to be connected with Watson Real Estate focused. I would recommend Watsons to any landlord and the complete service that is provided. I have great wanting peace of mind and a professional, competent ser- confidence in this firm and the helpful, professional staff I have to deal with”. Joshua Norris (owner) vice.” Christine Tester (owner)
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watson Frequently asked questions 1) HOW LONG DOES IT TAKE TO RENT OUT MY business references, previous landlord references, pho PROPERTY? to ID and permission to check with online tenant refe- The demand for rental properties in Palmerston rencing agencies and to do a credit check. North is traditionally strong. There is demand Once we have all of the information needed and we are from various sectors including business, education 100% comfortable, we will select the most suitable and military. Generally speaking, if a tenant gives tenants for your property. 3 weeks notice as they are entitled to do so, 4) HOW DO WE GET PAID? it is very likely we will have somebody to rent Rent is paid to us by weekly automatic payment, the property at (or shortly after) the end of this and this is monitored daily to ensure tenants meet notice period. We mostly put in place fixed term con their obligations. We forward the rent to you either tracts which helps to ensure continuity of rent. We try fortnightly or monthly with our management fee to advertise 4-6 weeks out from the tenancy ending to deducted. Also deducted would be small maintenance try to minimise the risk of vacant properties Jobs if applicable. 2) WHAT IS THE LIKELY RENTAL AMOUNT FOR MY 5) HOW OFTEN DO YOU CONDUCT PROPERTY PROPERTY? INSPECTIONS? We will advise you of a ‘fair market rental’ which We routinely inspect the property three times will be a figure based on what similar properties per year for which there is no additional fee. are currently renting for. Depending on your We conduct inspections for three main reasons. situation, we can try to get a higher figure, and Firstly, so that the tenant knows we are visiting feedback will quickly tell us if this is too high. regularly; secondly to make sure the house is 3) WHEN YOU FIND POTENTIAL TENANTS FOR MY being looked after; and thirdly to try and spot any PROPERTY, HOW DO YOU QUALIFY THEM? on-going or gradual maintenance issues. A letter If after showing your property, they are interested and report is sent out to you after each inspection. in it, we arrange for them to come into the office 6) WHAT IF I WANT TO SELL MY PROPERTY, CAN and be interviewed. Our property managers talk WATSON REAL ESTATE HELP? to hundreds of groups every year and have a Absolutely. In fact using the same company to good feel for suitable tenants. Potential tenants both sell and manage the property is very easy. are also required to fill out a comprehensive We can make sure the tenants are as helpful as application form which includes details of their possible, that all rights and responsibilities under personal and working situations and current the Residential Tenancies Act 1986 act are renting/living arrangements. The application also gives us the authority to check personal and 21
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watson 22 adhered to, and the transition goes as smoothly as We believe our service is the best around (in fact possible. Watson Real Estate has a highly we guarantee it on the back cover of this booklet). experienced sales team who use unique You get great value for money and no hidden costs. methods to get you the best price possible. We Our fee is 9.5% of rent collected plus G.S.T., and also offer a reduced sales commission for owners who includes absolutely everything we do. This means sell through our company. we can calculate exactly what your fee will be, it 7) HOW ARE RENTAL DEBTS HANDLED? never fluctuates, and is easy for financial planning Due to the types of tenants we select we purposes. Our fee is a tax deductible expense. have very few problems with terminations 9) WHO HANDLES PROBLEMS LATE AT NIGHT OR ON WEEKENDS? WE DO! due to lack of rent or through damage caused at a property. If you have specific landlord insurance, chances are your insurance company will pay you out a lump sum in a worst case scenario. If you have no insurance we will attempt to chase the debt for you – and in all likelihood recoup the money. This is done through the court system however, which takes some time and in most cases repayment is a ‘drip feed’ of $5 to $20 per week. The immediate cost to return the property to ‘market ready’ is incurred by the owners unless they have suitable insurance. 8) ARE YOU THE CHEAPEST COMPANY IN TOWN? Probably not. We are competitive and we are certainly not the most expensive. Traditionally, real estate companies will charge a percentage of the rent collected, and then have a host of extra charges – for the likes of inspections, arranging maintenance, extra advertising, representation in court, postal fees etc just to name a few. We always have a duty property manager available 24 hours a day, 7 days a week to act upon emergency situations. 10) WHY SHOULD I CHOOSE WATSON REAL ESTATE LTD? We take away your day to day worries, eliminate as much risk as possible, and have experienced and enthusiastic qualified staff. We are members of the Real Estate Institute of New Zealand and as such, are governed by the relevant laws, rules and a code of practice to ensure the job is done well at all times. We have a number of staff members who are Associates of the Real Estate Institute of New Zealand, who have the highest real estate qualifications available.
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watson 23 More valuable information... WE ARE MEMBERS OF THE REAL ESTATE INSTITUTE OF NEW ZEALAND (REINZ) As a REINZ agency member, we must meet the following criteria: 1) We must conduct ourselves and our business under the rules and codes of the REINZ: 2) We must operate a trust account and have all monies deposited into that account. We must have that account audited, and make that audit available to REINZ on request; and 3) We must hold current professional indemnity insurance cover to the minimum standard prescribed by relevant REINZ code; and provide evidence of such insurance upon request by REINZ. WE ARE MEMBERS OF THE LEADING PROPERTY MANAGERS OF NEW ZEALAND (LPMNZ) “Being involved with membership organisations helps us to bring the latest expertise and added value products to improve our clients experience.” As an LPMNZ Member we must: 1) Comply with the Code of Practice and benchmark levels of service and business practice 2) Receive cutting edge skills based training and advice 3) Attend regular forums and share strategies, tips, tools and ideas to help us to provide the best service and advice at all times 4) Be part of a network which can help refer clients around the country. WE ARE CERTIFIED METHAMPHETAMINE SAMPLERS As a member of MethSolutions : 1) We are certified to surface test properties for Methamphetamine traces 2) We can provide a point of difference for your home as ‘Certified Meth Free’ 3) We can provide pre-purchase testing to safeguard investor buyers Greg Watson Owner and Property Management Director
watson  23  More valuable information...  WE ARE MEMBERS OF THE REAL ESTATE INSTITUTE OF NEW ZEALAND  REINZ  As a REINZ ag...
Watson Real Estate Ltd Property Management Guide Guarantee “We guarantee that if, after three months, you are not entirely satisfied with our Property Management service we will cancel our contract and refund in full all management fees paid by you.” 267 Broadway Avenue, Palmerston North PO Box 1839, Palmerston North Phone: 06 353 1925 Fax: 06 353 7276 Email: rentals@watsonproperty.co.nz www.watsonproperty.co.nz www.facebook.com/WatsonProperty
Watson Real Estate Ltd Property Management Guide Guarantee    We guarantee that if, after three months, you are not entire...