Maximising Your Investment

Maximising Your

Investment.

A straight forward guide to Harcourts' Property Management service.

Four Seasons Realty

Who are we?

We are Harcourts.

We’re a highly successful multi-national real estate company, who have global, national, and local connections for selling, managing and letting property. That’s the combined resources of thousands of consultants across 10 countries.

Then there’s the advanced systems and training. So our people can recognise every opportunity for their clients – and step up and grab it.

But there’s something else that’s been far more important for our success. It’s you.

Where do you want to be? And what do you need from us to get there? As every potential client who reads this document will discover – it’s our commitment to your results that delivers success to you and our company. So we won’t randomly prescribe rental levels, marketing plans and renting techniques. We’ll work with you to find out what you want to accomplish.

Then we’ll work our hardest to get there.

Harcourts Offices • Australia

• Canada

• China

• Fiji

• Hong Kong

• Indonesia

• New Zealand • South Africa • UAE

• USA

Four Seasons Realty

Four Seasons Realty 2017 Ltd “We have the global, national and local connections for managing your property.”

About.

Services available:

Harcourts Four Seasons Realty 2017 Ltd has offices strategically located in Belfast, Hanmer Springs, Hornby, Kaiapoi, Lincoln, Rangiora, Rolleston and The Palms. The team includes six residential Property Managers, one commercial Property Manager and additional support staff, all working in the region.

• Residential Property Management

Our team of enthusiastic, successful real estate professionals are mostly local people who possess an in-depth knowledge of the immediate area.

• Commercial & Business Sales and Leases

The national awards gained for service and excellence are testament to the company philosophy...

‘To be successful we must first help our clients achieve their goals’. To this end Harcourts Four Seasons Realty 2017 are committed to excellence in service and creating ‘Clients for Life’.

• Commercial Property Management • Residential Sales • Rural/Lifestyle Sales • Developments and subdivisions • Project Marketing for Developments • Mortgage Broker Service • In-house Graphic Design & Marketing Service

Why should I appoint a Property Manager?

It’s important to ask yourself “Do I have a thorough understanding of the Residential Tenancies Act and other associated statutes?”

This is a highly specialised aspect of real estate and it is fraught with the danger of litigation in almost every task you undertake.

A competent Property Manager not only possesses a strong understanding of their role, they continually increase their knowledge of insurance requirements, changes to legislation and industry and market trends to ensure all clients achieve the highest level of service at all times. Property Managers are often engaged to pick up the pieces of poorly self managed properties after it has cost the owner countless hours in trying to resolve conflicts with their tenant, not to mention the monetary cost.

What to expect when you meet with your Harcourts Property Manager With your permission, when we meet we’d like to: •

Tour your property to enable us to take detailed notes and make a reliable and accurate rental assessment.

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Discuss your needs and expectations and determine how we can help.

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Answer questions you may have about Harcourts, the service we will provide and any other real estate matters.

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Provide you with accurate market research to attract and secure the most suitable tenant.

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Enquire about recent maintenance of the property, any current warranties which may apply and your current insurance cover.

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alk you through our Management Agreement and discuss W our working partnership.

“It’s important that all decision makers are available when we meet.”

Why us?

Consider this...

•

We are specialists in Property Management, our people are dedicated professionals.

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Our business philosophy is based on “creating success” and four specific values that are communicated throughout the organisation.

– – – –

People first Doing the right thing Being courageous Fun and laughter

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Our local knowledge is backed by our global strength.

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e promote a company wide focus on the delivery of W exceptional customer service.

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Our Harcourts Academy researches and provides expert training and coaching for our Property Managers who continue to remain at the forefront of Property Management legislative changes.

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Our offices are supported by a team of Property Management Operations Managers who are experts in their field and whose sole role is to support, train, problem solve and keep up to date with the latest innovations in the world of Property Management.

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e are at the forefront of Property Management technology.

W Our Property Managers utilise a mix of mobile and web based products for seamless management of the many administrative processes required.

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We accelerate the renting of your property to the right tenant through our focussed marketing and tenant screening procedures.

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We maximise your investment by optimising your return.

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We guarantee that we will proactively communicate with you on all matters relating to your property.

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We offer a wide range of value added services to further enhance your investment.

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Industry leading systems and procedures and our philosophy of continuing innovation ensures you and your property are in the best hands.

Local activity in our market A clear understanding of the local market is crucial.

We can make the best decisions on the renting of your property by possessing the most comprehensive information possible.

While we have access to the very latest market statistics, these alone do not provide the necessary vision. A more important benefit is the ability to translate these statistics into a clear, accurate reading for an individual property.

Checking recent market movements in the area is also imperative.

This information can then be used to draw a conclusion on the property’s potential and uncover opportunities for marketing and customer targeting.

Understanding historical patterns, gauging both external and internal market dynamics and assessing the current competition for any property is vital. With knowledge, clear, decisive action can be taken.

Pricing your property How do you achieve the best balance?

It’s a big question. Too low and you miss out on the best return.

Too high and you miss out on valuable income and a good tenant.

Fortunately, there are a number of ways to lessen this risk.

Realistically priced properties generate more enquiry. This means higher levels of interest, increased tenancy applications and a far greater chance of securing the perfect tenant and property match.

The time spent researching market conditions is invaluable here.

It also helps to avoid putting any barriers in the way of potential tenants. One such barrier may be price – as many potential tenants disregard properties based on price alone.

You may be promised an unrealistically high rental return from some competitor companies. These promises can result in the property staying on the market vacant for extended periods of time costing you valuable income.

Remember, at around $500 per week rent, a $10 difference could take you 50 weeks to recover the cost of a week’s vacancy.

Setting a realistic rental level is crucial, and this will need to be determined in conjunction with your Harcourts Property Manager.

Gordon Gordon McNay Gordon has been working in and around the property market for 20 years, with 13 years experience as a Property Manager and has a previous background in Investment Banking. He is a born and bred Cantabrian, currently living in North Canterbury with his family.

Having previously owned many rental properties in Christchurch through a syndicate, has given him first hand knowledge of both sides of the rental business.

A mature, friendly and well organised individual, Gordon communicates easily with people from all walks of life.

03 310 6003 | 027 202 4472 gordon.mcnay@harcourts.co.nz

His practical approach to Property Management and extensive knowledge of housing will ensure you get the maximum return on your investment.

Gordon's role as New Business Manager for Harcourts Four Seasons Realty 2017 Ltd is to bring in new rental properties and to get them let in a timely manner, at which point the experienced Property Management team takes over.

Leeann Jones Leeann has over 20 years property management experience and has looked after and maintained up to 500 properties at any one time. Through her vast experience, Leeann offers the very best possible service with dedication, drive and professionalism.

Leeann has an outgoing, friendly personality and is always prepared to offer her advice and expertise to both landlords and tenants alike. People are Leeann’s passion and working in property management allows her to indulge this passion through her constant contact with landlords, tenants and the general public.

Leeann managed properties throughout the Canterbury earthquakes, situations which challenged her ability to

03 310 6003 leeann.jones@harcourts.co.nz

n n a e e L cope with extreme situations and armed her with skills she has utilised within her day to day role.

As part of the Harcourts on-going training, experienced property managers now have the ability to become accredited, a very sought after accolade within the property management industry. Leeann is proud to have achieved this qualification.

Gina Gina Taylor With a background in real estate and 11 years property management experience, Gina prides herself on offering a professional service to both landlords and tenants alike.

With updated systems and procedures in place, you can ensure you are receiving the very best possible service and advice.

Gina is passionate about property management and enjoys the variety and challenges presented within this role and understanding the importance of being well organised, attention to detail and clear communication is essential.

03 310 6003 gina.taylor@harcourts.co.nz

As part of the Harcourts on-going training, experienced property managers now have the ability to become accredited, a very sought after accolade within the property management industry. Gina is proud to have achieved this qualification.

Gina looks forward to working with you in the future.

Nicki Dunn “Going the extra mile for my clients is my philosophy.”

Prior to entering the real estate industry in 2000, Nicki’s career covered a wide range of industries from banking, to telecommunication to construction. All however, have the same requirements of superior relationship building and communication.

As a property investor herself she sees her next step into Property Management to be a logical one.

Believing in the importance of effective communication, maintaining professionalism with both owners and tenants and having an awareness of the changing market, Nicki ensures client’s individual needs are met.

Now working with the Four Seasons Realty 2017 Ltd

03 310 6003 nicki.dunn@harcourts.co.nz

Nicki Property Management team gives her access to the latest technology and resources.

Call Nicki today to find out how she can help you work smarter not harder to manage your rental investments.

Kylie Arps

Kylie

Kylie has recently re-joined the Harcourts Four Seasons Property Management team as the local Property Manager.

out what to build and where to build it within the town.

Kylie appreciates that a rental house only becomes a home by what you make it and the people in it.

Having lived in the picturesque alpine village of Hanmer Springs for 14 years, Kylie has been able to keep a close eye on properties within the town. She has a good understanding of the area and its people, which helps support the running of this portfolio. She has always had an interest and appreciation for properties, architecture, and design. Kylie purchased her first home when she was in her early twenties and later completed an interior decorating and design course; this was just the beginning of her visions and experiences in the New Zealand property market. Forwarding the clock, Kylie designed and built their first Hanmer Springs home. Whilst this was being built the experience of renting different properties was a great way to figure

Completing her sales consultant licence and working alongside the wonderful Hanmer Four Seasons team for around a year before going off to have her last child was her first introduction into the industry. Being a landlord herself, Kylie knows how important it is to have your property well managed and cared for.

Finding the right tenant is crucial. She believes the key aspect to property management is good positive open communication to ensure a clear understanding of any situation. Developing a relationship with both the owner and the tenant is key to ensuring properties are managed effectively and efficiently.

03 315 7084 hspm@harcourts.co.nz

“I am looking forward to meeting with you to find your next home or tenant”

Healthy Home Standards What is it: The healthy homes standards introduce specific and minimum standards for all rental properties including: •

Heating standard

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Insulation standard

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Ventilation standard

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Moisture ingress and drainage standard

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Draught stopping standard

Timelines: From 1st July 2021 all private rental properties must comply with the Healthy Homes Standards within 90 days of a new (or renewed) tenancy.

From 1 July 2024 all rental homes must comply with the healthy home’s standards.

Further information: Heating – there must be one or more fixed heater(s) that can directly heat the main living room to at least 18 degrees celsius Insulation – some existing insulation will need to be topped up or replaced. Depending on location, ceiling insulation needs to meet minimum R-values, or existing insulation needs to be at least 120mm thick. Underfloor insulation needs a minimum R-value of 1.3 Ventilation – there must be windows, skylights or doors that open to the outside in the living room, dining room, kitchen and bedrooms. These must be able to be fixed in the open position and comprise at least 5% of the rooms floor area. There must be extractor fans in kitchens and bathrooms that vent to the outside Moisture ingress and drainage - there must be adequate drainage, guttering and down pipes. Rental properties that have an enclosed subfloor must have a ground moisture barrier (if it’s possible to install one) Draught stopping – Landlords must block any unreasonable gaps and holes in walls, ceilings, windows, floors and doors that cause noticeable draughts. Open fire places must be blocked unless the tenant and landlord agree otherwise.

For further information on the Healthy Home Standards visit: tenancy.govt.nz/healthy-homes or ask one of the Harcourt Four Seasons Property Management team.

Checklist

To ensure the safety of your tenants.

Are smoke detectors compliant?

Have you checked all your electrical appliances are in safe working condition?

Are all power sockets and light switches in safe working condition?

Are all lights working and damaged light globes replaced?

Is the property secure with all locks in working condition?

Do you have adequate Building and Public Liability Insurance?

Do you have Landlord Protection insurance?

Do you have a security system and if so is it in good working condition?

Is all the plumbing in working condition? Small leaks can cause big problems.

Are the gutters clear of any debris to avoid any flooding problems?

Do you need to organise a gardener prior to your departure or during the time the property is tenanted?

Are the pool chemical levels correct, all equipment is in working order and have your arranged for the pool to be regularly checked and maintained?

Does the safety fence around the swimming pool comply and is there a self closing gate installed and in working order?

Have you ensured there are keys plus copies to all windows and doors?

Are all remotes in good working order with new batteries installed?

Has the chimney been recently swept and checked for safety?

Has the heat pump been checked?

If you have any questions with regards to any of these items or need assistance with anything please do not hesitate to contact me.

Our commitment to you Communication We will effectively communicate with you. Your Harcourts property manager will discuss your needs and develop a policy for the prompt response and resolution of matters for you and your investment.

In the busy world of property management our clear communication procedures ensure that you always know what’s happening with your property.

Letting We will: •

Ensure that you are kept fully informed throughout the process of finding a tenant for your property.

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Undertake comprehensive listing notes about your property.

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Prepare advertising for your property including appropriate photographs.

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ave the property listed on all the real estate H web sites that we subscribe to, within 48 hours of listing your property for rent.

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Conduct open homes of your property for all prospective tenants until your home is tenanted (subject to access being provided to us by any current occupant).

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Ensure your new tenant pays all ingoing costs prior to the commencement of the tenancy.

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Lodge the bond in accordance with legislation.

Rent Collection We have a zero tolerance rent arrears policy which we outline clearly to all tenants when they sign their tenancy agreement. We will: •

Process rent payments made into our trust account daily.

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Follow up all late payments in accordance with the Residential Tenancy Act 1986.

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Keep you fully informed at all times of the process we are following should the tenant fall into rent arrears.

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Check successful applications on the relevant tenancy and credit control databases.

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Verify applicant’s references and previous renting history if short listed.

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V erify and confirm applicants employment status if short listed.

We will follow the legal process through the Tenancy Tribunal should the necessity arise.

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Refer all potentially suitable applications to you for approval (unless instructed otherwise).

Provide you with an annual financial summary of rents collected and outgoings paid.

Property Inspections

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Let your property for the asking amount of rent, (as outlined in your management agreement with us). We will not let your property at a different amount, without first obtaining your permission.

We will complete a comprehensive ingoing condition report of the property and will take photographs of both the interior and the exterior prior to the property being occupied.

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Complete and execute the tenancy agreement and explain in detail your new tenants rights and responsibilities.

We will:

• •

•

Conduct regular inspections of the property,

as mutually decided upon and set out in the Management Authority, and provide you with a written report. We will report to you any repairs or preventative maintenance that may be visible or that is reported to us by the tenant at the time of the inspection.

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Conduct a comprehensive outgoing property inspection when the tenants vacate the property ensuring that it is comparative with the original condition report, whilst taking into consideration any fair wear and tear on the property.

Accounting We will: •

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Deposit the net proceeds of your rental income into your nominated bank account as per your Management Authority.

Pay property outgoings as agreed on your behalf prior to the due date (subject to the availability of funds).

Maintenance and Repairs We expect that property owners will undertake recommended repairs to their rental property in order to preserve the value of the property, meet legislative obligations and maintain a positive relationship with the tenants. At Harcourts, we encourage your tenants to submit all maintenance requests in writing.

We will: •

Not undertake repairs to your property in excess of your nominated amount, without first obtaining your approval. NOTE: This excludes emergencies and repairs that are required to be rectified by law.

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Contract a tradesperson within a timely manner for non urgent repair requests.

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Attend to any urgent repair requests immediately.

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Only use trades people who are properly licensed and insured to handle the type of work being performed on your property.

Tenancy Renewals Should a fixed term tenancy be entered into for your property we will: •

ontact you prior to the expiry of the fixed term C to advise you of current market conditions and to discuss a further fixed term or a periodic tenancy for your property.

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Advise you of any notice by the tenants that they are not renewing their tenancy.

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Minimise vacancies by promptly acting on any notice to vacate received from a tenant.

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Pro-actively manage the tenancy agreement renewal process wherever possible to facilitate consistent income.

Rent Review We will review the rent charged on your property in accordance with the current legislation to ensure you receive the highest rent possible.

Tenancy Laws The recent changes aim to make rental homes warmer and drier for tenants.

As a landlord: You need to be aware of what your obligations under the new laws are. If you have any questions or concerns, speak to your Property Manager for further advice.

Smoke Alarms •

Landlords are required to have working smoke alarms installed in all their residential rental homes and must have checked between tenants. Any replacement alarms installed after that date must have long life batteries and a photoelectric sensor. Tenants will be responsible for replacing worn-out batteries in the smoke alarms and informing their landlord of any defects.

Insulation •

All residential rental homes in New Zealand are required to have insulation to keep a home warm in winter and cool in summer. This includes underfloor and ceiling insulation, meeting the required standard where it can practically be installed.

•

Landlords will be required to provide a statement on the tenancy agreement for any new tenancy about the location, type and condition of insulation in the rental home.

Other Changes Changes to enable faster resolution of tenancy abandonment cases, to allow rental properties to be re-let more quickly.

For more information visit the Ministry of Business, Innovation and Employment www.mbie.govt.nz

Meth Testing It is recommended that before you purchase or rent out an investment property you commission a meth test to be carried out by an independent specialist. If a home has been used as a rental property, Airbnb or other transitory accommodation, getting the test done could be viewed as sensible.

A meth test brings peace of mind. The world of meth testing, however, isn’t straightforward. There are differing opinions on what a worrying level of contamination is.

Sometimes the level being detected in houses is well below any worrying level in terms of risk to human health.

Current limits of meth residue before decontamination is needed is 1.5 micrograms per 100 sq cm, which Massey University toxicologist Dr Nick Kim says is well below the level where you would expect a health effect.

Landlords are required under the Residential Tenancies Act (Building Act and Health Act) to provide a clean property. Tenants who find they have been let a contaminated property could seek redress from the Tenancy Tribunal.

These tests, conducted by an independent tester, cost from $200 and will give a level if Methamphetamine is detected.

And please remember to...

Redirect your mail.

Organise for the power supply to stay on until a tenant moves into the property (especially if you have a security system).

Make sure your building insurance remains up-to-date and you have adequate chattels insurance.

Contact your insurance agency to advise of the property being rented.

If your security system is monitored, advise monitoring agency of change of details.

Ensure the carpets are professionally cleaned, the property is professionally cleaned and windows cleaned inside and out.

Cleaning inside / Tidy garden / Pruning Does the exterior need washing also?

Disconnect your land line.

Cancel internet connection.

Arrange for your Sky account to be either cancelled or transferred to your new address.

Notify your Bodycorp that the property is now rented.

Arrange for your water accounts to be sent to your managing agent.

And relax in the knowledge that your property is in the hands of a specialist.

The next step We are here to help Renting and managing property is often a stressful time. That’s why we pride ourselves on clear communication from the outset.

We make sure we work with you – so you’re always in control, from the initial renting process and throughout the ongoing care and management programme of your property. So if you have any questions at any stage, please don’t hesitate to ask.

Fees If you are comparing agencies based on fees alone, ask your preferred agencies for a complete list of what they’ll do for you in the process of managing your investment. Any extras may vary greatly and be costly in the long term.

Authorising a managing agent Once you’ve decided to place your property under our management, we will need to complete the management agreement.

The management agreement is the authority required for us to care for your investment. It clearly defines the obligations of all parties, the terms and conditions of management and the structure of management for the term outlined in the agreement.

Management Fees All fees are exclusive of GST unless otherwise stated.

Services Provided Rental appraisals and advice Management fee Repair and maintenance fee Administration fee

Our compliments 8% 8% of invoice $10.00 per month

Methamphetamine testing

Provider dependent

Healthy homes

Provider dependent

Routine inspection fee SATS

$45 per inspection $99 per annum

Comprehensive ingoing inspection

$45 per inspection

Comprehensive outgoing inspection

Our compliments

Fixed term tenancy renewal fee

Our compliments

Tribunal attendance & evictions Application filing fee (if applicable)

Our compliments

Insurance claims fee

$50.00 per hour

Furniture inventory fee

$50.00 per hour

Financial year summary fee

Our compliments

Bond collection and management

Our compliments

Comprehensive digital photo storage

Our compliments

Internet advertising harcourts.co.nz realestate.co.nz trademe.co.nz - listing fee

Our compliments Our compliments Our compliments

Letting fee

Equivalent to one weeks rent

Print media advertising

Our compliments

Rent review fee

Our compliments

021 3-2 201

Re al E i es state Ag enc

Four Seasons Realty 2017 Ltd 0800 789 1011 | harcourtsfourseasons.co.nz

Belfast

Belfast

Hanmer Springs

T: 03 323 6045

T: 03 315 7084

E: fsrentals@harcourts.co.nz

E: hspm@harcourts.co.nz

A: 804 Main North Road Belfast, Christchurch

A: Shop 3, 12a Conical Hill Rd, Hanmer Springs

Hornby

Kaiapoi

T: 03 349 9919

T: 03 327 5379

E: fsrentals@harcourts.co.nz

E: fsrentals@harcourts.co.nz

A: 395 Main South Road, Hornby, Christchurch

A: 154 Williams Street, Kaiapoi

Lincoln

Rangiora

T: 03 662 9933

T: 03 310 6003

E: fsrentals@harcourts.co.nz

E: fsrentals@harcourts.co.nz

A: 6 Gerald Street, Lincoln

A: 15 Good Street, Rangiora

Rolleston

The Palms

T: 03 347 4711

T: 03 385 0343

E: fsrentals@harcourts.co.nz

E: fsrentals@harcourts.co.nz

A: Unit 13, 70 Rolleston Drive, Rolleston

A: 39 Marshland Road, Shirley, Christchurch

Hanmer Springs

Hornby

Kaiapoi

Lincoln

Rangiora

Four Seasons Realty Your home for local property Four Seasons Realty 2017 Ltd | Licensed Agent REAA 2008

Rolleston

The Palms