Najib Property Management - Caring For Your Investment

Caring for your investment

A short note from our founder

I want to thank you for inviting us to discuss your property. As the founder and Managing Director of Najib Real Estate, I take enormous interest in every customer relationship.

This package is intended to provide you with background on who we are, how we are different, and how we work to achieve the best outcome for you and your rental property.

I can assure you that you will be in the best of hands with our team, and if at any time you would like to contact me to discuss any element of your investment portfolio, I would be delighted to assist.

Best wishes,

Nathan Najib

Managing Director 027 514 0775 nathan@najibre.co.nz

Why Najib?

When it comes to property management, only an experienced team of passionate, proactive people with finely tuned processes can steer your valuable investment into a profitable future.

Our team work within a highperformance culture, providing the utmost care for our clients, and a focus on achieving optimum results.

Market experience and management expertise aren’t a given; they’re earned and achieved under the leadership of a team who can challenge the status quo. Najib prides itself on reading the market’s ebbs and flows to ensure your property always attracts its maximum rental value.

Fostering a human connection, our personal touch promotes faceto-face contact, opens all lines of communication and contributes to building rapport and relationships with our landlords and tenants.

Direct access to a vast database of quality applicants, along with our strong digital, social media, and marketing presence gives you assurance we will keep vacancy rates to a minimum.

With our finely-tuned documentation processes, up-to-the-minute training, and a sound understanding of legislation front of mind, we leave fewer things for you to worry about. This brings you one step closer to securing a profitable future with a steady investment return.

This information pack contains everything you need to know about Najib Property Management, including reviewing rents, securing and keeping quality tenants, and the pros and cons of allowing pets at your property.

This is all aimed at helping you make informed decisions to maximise your income potential.

Expect the best.

Your property management team

Nathan Najib

Managing Director

027 514 0775

Nathan is proud of the life he has created. Unsurprisingly to those that know him, he is living his desire to change the world of real estate from something it should never have been, to something that supports the community and helps others move forward.

Sharon Sanders

Head of Property Management 021 432 684

As the Head Property Manager, Sharon is responsible for the management of our properties. Her care for people, coupled with a focus on result, means that she will always do what is best for our landlords and tenants.

Sophia Lewis

Assistant Property Manager

021 244 2356

Our Assistant Property Manager, Sophia , has a degree in Valuation and Property Management, and thrives when she is connecting with people. Her strength lies within her ability to work collaboratively to always find a solution to a problem.

The Najib property management process

One

The Head of Property Management appraises the property for rental. Recommendations are made on how to achieve an optimal rental result, including property presentation, preventative maintenance measures, and an individual marketing and leasing strategy.

Two

The landlord completes the Management Agreement, sourcing required information and sign off.

Three

The Head of Property Management arranges professional photography, writes copy text, and discusses property presentation.

Four

The Head of Property Management briefs the property manager and launches marketing online through our prospective tenant database.

Seven

The property manager introduces themselves to the landlord, discusses any special requirements, and arranges the first open inspection. They coordinate inquiries from prospective tenants, conduct inspections, and communicates progress to you.

Five Six

The property manager screens applicants, makes recommendations to the landlord, and negotiates with applicants, as required. They prepare the Tenancy Agreement, arrange sign-off with the successful applicant, including payment of bond and the first week’s rent.

The landlord finalises any outstanding cleaning or maintenance and hands the property over to Najib Property Management. Three full sets of keys and appliance manuals are also required. The landlord closes off the electricity account with the provider (as well as any other outstanding utility accounts.)

Eight

The property manager documents the pre-tenancy property condition.

Nine

The tenant collects the keys from our office and moves in.

First impressions count

Tenants are just like you; they want a comfortable, clean, functional home. Therefore, how you present your property can determine your property’s online time, and deliver - or deprive - you of valuable income.

Preparation, in our experience, brings the best price. So, when it comes to presenting your rental property, make it shine.

An immaculate property inside and out says a lot about you as an owner, and even more about the calibre of tenant you’ll attract.

However, if you don’t have the time, we have the professionals to help. We have home stylists that can add flair with furniture for visual appeal, cleaners to give your property a good going-over, and trades to handle those niggly fixes.

Refreshing paintwork, fixing or replacing dripping taps, cleaning gutters, and servicing heat pumps, it all matters. Think about installing sensor lighting, or hard-wearing laminate floors; all the vitals for low-care and easy living.

From here, Najib builds tenant attraction through its unique and tailored marketing to maximise market appeal and to feed demand — demand that will potentially increase your rental price.

We have the experience, know-how, and connections to make it happen, and thrive on working with you to make the experience not only rewarding, but enjoyable.

If you care for your property, so will your income-providing tenant. And they will pay well for the privilege.

Utilities

If the property is vacant during the letting period, we recommend the electricity remain connected.

This will allow us to better present your home to prospective tenants with lights on, as well as cooling or heating during extreme weather.

No electricity may also impact your property if you have a pool, automatic sprinkler system, alarm, or electric gates, so this should also be considered.

Landlord and tenant relations

Good relations start with a lead by example approach. But it’s also interesting to look at the varying characteristics of tenants and landlords.

Mutual respect speaks volumes. Asset growth and cash flow can be affected by poor landlord/tenant relations with changeover costs adding up!

The following scenarios offer some general statements, which may be worth considering based on your needs and your property.

• A professional couple or individual moving to Christchurch for a short term may not want to tend to gardens.

• A long-term tenant staying for years may seek a higher commitment of care and maintenance from their landlord.

• A home with a backyard may attract tenants with pets.

• Family-sized homes will attract families with children – potentially leading to more wear and tear on a property.

• A neglected property can attract a poorer calibre of tenant with an unreliable payment history.

• It is worth thinking about the longevity of your tenant over the prospect of a higher weekly rent. A long-standing tenant who may pay less weekly rent, but maintain your home as if it were theirs, may be more valuable for those landlords who intend on returning to the property.

• Investors who own CBD apartments/townhouses may prefer a higher weekly return while leasing to students, but understand the property may require upkeep more frequently.

Ultimately, your team at Najib care about what your needs are and will advise and action accordingly.

Application: Home, tenant, match

As the owner of your property, you have the final say on tenant selection. However, it is wise to consider the recommendations of your property manager. They have years of experience and training, which makes them an excellent judge of tenant character.

Interaction at property inspections gives your property manager a good feel for the prospective tenant.

Interested parties are required to complete a detailed tenancy application form, which includes rental, employment, and character references. Some tenants are happy to provide bank statements, but legally they don’t have to.

Najib verbally confirms references and asks qualifying questions to ascertain the applicant’s suitability for your property.

They must pass the income test as well as New Zealand Tenancy Database check. Google and Facebook searches can also generate interesting and influential results.

Where appropriate, we encourage landlords to be negotiable with pets. This ensures applicants with pets can be considered on a case by case basis, thus widening the pool of prospective tenants and enabling the choice of the best tenant for your property.

Residential tenancy agreements: Fixed or

Periodic?

What is the difference?

Before entering an agreement with a tenant, you must decide which terms suit your needs:

Fixed or periodic.

Fixed Periodic

A fixed tenancy is a fixed term with a start and an end date, usually over a period of 6 or 12 months.

The end date indicates the minimum length of time the tenant agrees to stay in the property.

Fixed lease considerations:

• Suited to landlords and tenants seeking peace of mind and security.

• Tenants may contribute towards costs of re-letting should they choose to move out earlier than agreed.

• Once a fixed term ends, the tenancy will automatically become periodic, unless the correct notice has been given.

A periodic tenancy offers flexibility with no fixed end date. It simply means the lease can carry on indefinitely until the tenant is given a minimum of 90 days’ notice in writing to terminate for selfoccupancy.

Or, in reverse, the tenant gives you a minimum of 28 days’ notice (or one calendar month if rent is paid calendar monthly) to vacate the property.

Periodic lease considerations:

• Tenants can terminate at any time (subject to the 28 days’ notice period), resulting in an unforeseen vacancy, which may occur during a slow letting time of year.

• Tenants do not have to contribute to any re-letting or marketing costs.

• May be beneficial for landlords looking to sell, renovate or demolish in the future.

The Residential Tenancy Agreement

The Agreement

We prepare a Residential Tenancy Agreement covering all the details, terms and conditions of the agreement, which your tenant agrees to sign. You will receive a fully executed copy of the Tenancy Agreement for your records.

A detailed report outlining the condition of the property (including a description of each item and the property’s level of cleanliness) is provided to the tenant. The tenant is invited to confirm the accuracy of the report. This report then becomes the measure upon which the bond will be refunded at the end of the tenancy.

Can I add a clause?

Landlords/property managers cannot just add any conditions to the tenancy agreement. All conditions added must comply with the Tenancies Act (1986.)

Generally, a landlord can only add a condition to the tenancy agreement if it relates to specifics of the property.

Examples of such conditions are:

• Excluding elements of the property (eg: fireplaces, rooms, sheds.)

• Garden responsibility (if a gardener is provided.)

The bond

You will need the equivalent of four weeks’ rent for the bond.

Where does the bond money go?

The bond is deposited into a trust account, identified by an individual reference number upon lodgement. This is retained by the Tenancy Bond Centre.

The bond is refunded only after Najib Property Management is satisfied of the following:

• The tenant has vacated the property and returned all keys (including duplicates) to Najib.

• A final inspection has been completed and it is favourable with the In-going Inspection Report.

• All due monies are paid; this means all rent and any other costs, as agreed in the lease.

• Any re-letting fees or advertising costs have been finalised.

• Any damage/cleaning costs have been negotiated and finalised.

How much bond is required?

When is the bond refunded back to the tenant?

Landlord’s insurance

Why should I take out landlord’s insurance?

Najib Property Management strongly encourages landlord’s insurance cover for tenant related risks and damage to the property.

You should consider sufficient risk mitigation for:

• Third-party liability in case a tenant damages or destroys the structure of your property.

• The cost of rehousing a tenant should the property become uninhabitable due to fire or flood, for example.

• Contents cover for any furnishings belonging to you.

• Cover for any claims made by a tenant or their visitor from being injured at your property.

We highly recommend you seek advice from a qualified insurance provider or broker.

Rent collection

Under no circumstances do we tolerate rent arrears. We communicate directly with the tenant for a speedy resolution if they fall behind, and liaise with you for further instructions if the tenant experiences any financial hardship.

Under a fixed term:

• Upon expiry of the fixed term.

• When your agreement includes a condition allowing for a rental increase, specifying how much, when it is to commence and how it will be calculated (e.g. in line with the Comparable Price Index.)

• The date of the increase must be 12 months after the last increase.

• You must provide 60 days’ written notice outlining the full details (as above) of the increase in every instance.

Under a periodic term:

• Upon giving your tenant at least 60 days’ written notice and specifying the amount and commencement date of the increase.

• The date of the increase must be 12 months after commencement of the agreement, or 12 months after the last increase.

When can I increase the rent?

Inspections

What happens first?

Stringent checks, detailed reporting, and rigorous procedures are put in place well before your tenants arrive.

An in-going inspection is carried out prior to a tenancy commencing. We will thoroughly document the condition of your property with notes and photographs, which are compiled into the In-going Inspection Report.

This outlines the property’s features and its condition from the outset of the tenancy, including existing imperfections, and both interior and exterior items, such as carpets, curtains, walls, gardens, and fences.

This report is an important benchmark and can be used as evidence should there be any disputes relating to damage that may occur to the property during the tenancy.

We encourage tenants to thoroughly review the report as its contents will form the measure at the end of the tenancy to determine whether a claim can be made against the bond.

A copy of this report must be returned by the tenant within 14 days from the start of tenancy.

How often will you inspect my property?

Routine inspections are carried out quarterly, although this may vary with each property. This is to ensure that the property is being well cared for and to advise on maintenance or safety issues.

We walk through room-by-room, check for any damage, and ensure its upkeep and cleanliness is of an acceptable standard. Photographs are taken of both inside and outside areas to advise you of any maintenance work required.

A copy of the full inspection report is available for your review.

Maintaining your property: Repairs, wear and tear

Who is responsible?

As a landlord, it is your responsibility and your expense to maintain the property. We are here to help you with this in any way we can.

At Najib we understand that every landlord may have different preferences when it comes to the maintenance of your property.

We cater for landlords who like to be informed for each and every issue; those who can attend to their own maintenance, those who have their own preferred trades to call on, and those who wish for Najib to coordinate the entire process without interrupting their day.

Using our reliable software and regular inspections with photographic evidence, costly maintenance can be minimised.

If repairs are required due to normal wear and tear, you’ll be notified straight away with fixes undertaken at your expense.

If a tenant damages your property (whether carelessly or intentionally), they may be responsible for the cost of repairs.

Your property manager facilitates all repairs and maintenance through a team of trusted and qualified tradespeople. Where required, we arrange quotes, discuss options and costs, and keep you informed of progress.

Our list of preferred trades handles all aspects of property maintenance. They are licensed, insured, and trusted to provide good quality service for an appropriate price.

What is considered ‘wear and tear’?

Common sense prevails, but legislation allows for day to day living. A few scuffs or grazes, and gradual wear of items in your property is to be expected. A hole in the wall, for example, is not general wear and tear.

Your In-going Inspection Report is the best measure to compare the ‘before and after’ condition of your property while also factoring how long your tenant stays on.

It makes sense to spend money every 5-7 years, freshening up your investment, updating worn appliances and fixtures to retain market value and gain the best rental returns possible.

Does a landlord maintain the lawns and gardens?

Unless otherwise agreed, the tenant is required to mow lawns and weed the gardens as ruled by legislation.

Regular pruning and hedge trimming is a landlord’s responsibility.

If damage or a breakdown occurs to an appliance without tenants having access to an operating manual, or written or verbal instructions for its use, you cannot hold the tenant liable for repairs, irrespective of misuse by your tenant.

Therefore, as a landlord, it is your obligation to supply manuals to safeguard appliance damage and minimise your risk.

You can also talk to the Property Manager about sourcing instruction manuals either online or by other means.

Why do I need to provide appliance manuals?

Preventative maintenance

Preventative maintenance (such as gutter cleaning, smoke alarm servicing, and heat pump servicing) is good practice, as it reduces unnecessary risk as well as possible larger issues later. This type of maintenance can be programmed well in advance.

General maintenance

General maintenance (such as leaking taps, garden pruning, and replacement of tired appliances) needs to be attended to as soon as is practical. Your property is the tenant’s home so keeping it in good working order and well-presented shows the tenant you care and sets a good example for the tenant to follow.

Emergency maintenance

Emergencies (such as broken windows, locks, burst pipes, and gas leaks) need to be dealt with as a priority. A discretionary expenditure limit authorises your property manager to make necessary arrangements ASAP to minimise risk to both the landlord and tenant.

Tenancy renewals and end of tenancy

Your property manager will contact you well before your tenancy lapses to discuss and plan your next move.

Whether you choose to renew with your current tenant, seek vacant possession yourself, or even list your property for sale, the decision is entirely yours.

Yes. If you plan to either sell or do major renovation, the tenant needs to be notified, with 60 days’ notice, of the reason under the new laws as of February 2021.

On a fixed-term contract, the tenant needs to liaise with the property manager and landlord to confirm a date.

On a periodic contract, 28 days’ notice is required.

Do I have to give my tenant a reason why I’m not renewing the lease?

If my tenant wants to leave, how much notice should they give?

We like to start tenancy negotiations with you three months prior to the tenancy expiry date. This gives you an opportunity to consider your options after we have reviewed the tenancy and market conditions for any possible rent increase.

Once we receive your instructions, we communicate with your tenant to ascertain their plans and commence the negotiation process.

It is important to enter into another lease agreement as soon as possible to ensure your rights are protected. Legislation explicitly highlights that failure by the landlord and tenant to enter into another fixed term agreement (or to advise intentions to vacate) 28 days prior to the lease end date, will enforce a periodic tenancy.

We consider current market conditions, immediate competition, stock levels, tenant demand, redevelopment, and social/economic factors, as well as specific property features (such as home improvement or additions) from the preceding year.

Tenants have also become more savvy seeking extra features for their dollar, especially when the market is in an overflow of supply. This directly affects your potential rent increases.

A combination of these factors can suggest it may be more financially viable to maintain an existing tenant, rather than have them leave, which could trigger a prolonged vacancy period and potentially lower rent.

Najib Property Management keeps in touch with you and your tenant regularly throughout the end of tenancy process. This means your tenant will have a full understanding of our expectations on presentation and care for the final inspection well before they start packing boxes.

Our thorough exit procedures compare the In-going Inspection Report with the final inspection report, while considering reasonable wear and tear over the course of the tenancy.

Why does my property manager want me to decide about the tenancy so long before it expires?

Why does my property manager provide a recommendation regarding the increase in rent amount?

And what happens when the tenancy expires?

Selling your property

With our specialised team of property managers working alongside many sales consultants spanning the wider area of Christchurch, we have the agents, auctioneers, and expertise to prepare you for your possible next phase: the sale of your home.

Many properties are easier to sell without a tenant; however, you are entitled to sell your property with a tenant in place. We will need to give the tenants notice, and they will need to also agree.

• If you have a fixed tenancy in place, the tenant has the right to stay on until their lease ends, unless both the landlord and tenant mutually agree to terminate the agreement. Potential purchasers must honor the remainder of the lease and this may restrict your buyer.

• If you have a periodic tenancy in place, 90 days’ notice is required for vacant possession.

Whichever path you take, you’ll carry the confidence of a united, dynamic, and professional team, familiar faces delivering the same world-class service, technology and market reach, all geared towards the best result possible.

Please speak with your property manager/sales consultant about the legalities, as the above information is a general guide only.

Pets and your property: Yes or no?

Pets are not permitted on any Najib rental property unless expressly agreed by you as the landlord.

Welcoming pets within your tenancy enhances the appeal of your property to a broader range of applicants. To many, pets are family, but you should consider the risk versus rental reward.

Pros

Cons

Whether a pet policy is in place or not and irreparable damage is done, the damaged item (curtains, carpets, sprinkler system, etc.) must be replaced at the tenant’s cost.

In the end, you always have the right to decide if a ’pet-friendly’ tenancy is for you.

• Tenants may be open to negotiating special terms/higher rent to allow their pet into the tenancy.

• Pet-friendly properties may rent faster due to higher demand.

• Applicants with pets are often longterm and reliable tenants.

• Pet hair, pet waste, fleas, and animal hygiene require professional cleaning to maintain your property in a rentable condition.

• Claws can damage carpets, curtains and woodwork requiring costly fixes.

• Animal urine is acidic and can damage the pile of carpet or even stain carpets permanently.

What happens if I agree to a pet and it causes damage?

Safety: Smoke alarms

Smoke alarms

A compliant, functional smoke alarm is a legislative requirement and your responsibility as a landlord. We can arrange compliance checks with companies equipped to properly service your alarm and provide written confirmation for your peace of mind, assurance and risk management.

The Najib service guarantee

• We will place a listing for your property on the real estate websites that we subscribe to, which will include at least ten photos of your property.

• We will update you on the status of your available property at least once everyday and give you a verbal or emailed weekly report until the property is leased.

• Unless you instruct us otherwise, all potentially suitable applications will be referred to you for a decision regarding acceptance.

• We have a zero tolerance rent arrears policy.

• We will attend to any urgent repair requests as soon as practically possible. We will not arrange repairs to your property without your knowledge and approval (unless the repair is defined as urgent under the Residential Tenancies Act), or you give us written instruction to action repairs up to a given amount.

• On receipt of a tenant vacating notice, we will advise you promptly by phone or email.

• Your rent statement will be personally checked by your property manager prior to being forwarded to you.

• We will provide you with an accurate annual income and expenditure statement within seven days of the end of the financial year.

• We will respond to all communications within one business day.

• All property condition reports that we sign on your behalf (as your property manager) will be forwarded to you, unless you instruct otherwise.

• Your personal information will be held in the strictest confidence and will not be released to a third party without authorisation.

If we fail to meet any of these standards and you notify us in writing, we have two business days to rectify the matter. Otherwise, we will not charge you a management fee for the following three months.

What’s next?

To formalise our appointment as your property managers, and to enable us to act on your behalf, we require the following from you...

Signed authorisations

• Residential Management Agreement

• Marketing expenditure schedule

• Property standards checklist

• Smoke alarm compliance

• Landlord insurance (if requested)

• Healthy homes report

Other items we may need

• If your property is newly purchased, confirmation of settlement from your solicitor.

• List of any inclusions/exclusions for your property.

• An inventory list (if your property is furnished)

• Additional keys and remotes (alarm code if applicable)

• Appliance manuals in PDF format

Thank you

I invite you to contact me directly at any time during the property management process.

Nathan Najib

Managing Director 027 514 0775 nathan@najibre.co.nz

Ph 03 326 7914

116 Peterborough Street Christchurch Central 8013

najibrealestate.co.nz

Licensed REAA 2008