APM Client Newsletter – August 2021

Posted by Auckland Property Management Ltd on August 20, 2021 | Company News, News, Newsletter

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Welcome to the August 2021 edition of the APM Client e-Newsletter

IMPORTANT: Our offices in Auckland and Waiheke Island are closed during Alert Level 4 but our Managers are working remotely should you need us.

Click here for an update for property owners and tenants, and for up to date information on the alert levels click here.

Stay safe, follow the guidelines, practice physical distancing, scan the QR codes, wear your mask and wash your hands to help keep everyone safe.

From the team at Auckland Property Management

A Word from Howard – Here’s to 30 Years!

Earlier this month we celebrated our 30th anniversary in an industry that is always changing, and I am pleased to say progressing. The industry has weathered disruptions from economic ups and downs and from changes brought about by having to follow political agendas. Some of these changes have been fraught with difficulty. We know it is no mean feat to have reached 30 years, but on this journey we have always at our centre had a strong team of passionate people who are dedicated to property management.

On 2 August 1991, when Auckland Property Management was born, we had three staff, one of whom is still with us today! We also had a vision which has not changed – focusing solely on providing excellent property management services. Over the years other people have suggested we should ‘expand’ into real estate sales, or open retirement villages but we have kept a very tight focus.

 

(we couldn’t find a 1991 staff photo but the below is close)

 

We are proud to say that, since we started, we have grown to 67 staff who operate all over Auckland, Waiheke Island, and also wider New Zealand in body corporate and commercial property management. We have  held our focus but expanded our services to clients to become a one stop property partner specialising in residential, body corporate, and commercial property management, and Waiheke Island holiday homes.

Celebrating our 30th anniversary has been a great time to reflect on the work we have done over the years, and appreciate where we are today:

  • 66% of our Residential, Commercial and Body Corporate teams have been with us for over 5 years (17% of the team has been with us over 10 years).
  • Over 340 clients have been with us for over 10 years.
  • We manage over 2,100 residential rentals, over 7,700 body corporate units, and over 190 commercial tenancies.
  • Over 1800 nights are booked per year in our Waiheke Island holiday homes.
  • Over $8 Billion worth of property is trusted with our management.

Those numbers have a client as the centre point. We wouldn’t be where we are as industry leaders without our loyal clients. Relationships are everything in this industry and we are pleased that people choose us to help them with their valuable assets. As an example, we have been managing a residential property for 27 years for the same owner, and we have grown together with this client. In some other cases we are now working with the third generation of the one family.

We have gained not just 30 years in business, but more than 30 years in experience and knowledge that gets passed on to our clients every day. New systems, new regulations and even new building uses have all been accepted and built in along the way. Every day we strive to provide our services with the best software, best team, best procedures and systems. We would love to hear from you and of your experience with APM as we appreciate any feedback.

30 years, the time has flown! Thank you for being part of our journey and long may it continue.

Until next time.

Kind regards

Howard Morley

Managing Director
Auckland Property Management

An Update with Bill – 30 Years of the Market

In 1991 the average purchase price for a house in Auckland was $195,000* and the average rent was $200* per week or $10,400 per year. That’s a gross yield of 5.5% per annum.

Roll forward 30 years and the average purchase price in Auckland is $1.35 million* and the average rent is $603* per week or $31,356. That’s a gross yield of only 2.3% per annum.

But wait, aren’t we missing something?  If you paid $195,000 for a house in 1991, and kept it, then now it should be worth $1.35 million. That’s a capital gain of $1.16 million over 30 years. You have made $38,500 per year. In other words, a gross return of 19.7% per annum or 22.0% if you add in the 2.3% yield.

This just confirms what we all know which is that the real driver for residential property investment in Auckland is capital gain, not yield. I’m not allowed to give financial advice, and I won’t, but I don’t see the drivers of that capital growth changing any time soon. We still have a major housing shortage accentuated by more ex-pat Kiwis wanting to return home than ever before. We have a major shortage of builders, electricians, plumbers and other trades people, and we are struggling to import much needed building materials.  It is difficult to see any costs associated with building homes coming down any time soon.

I just wish my wife and I had kept the 14 houses we have sold since 1991!

*Average figures quoted above are based on unqualified data obtained from Internet searches and may not be 100% accurate.

Kind regards

Bill Highet

Chief Operating Officer
Auckland Property Management

Residential Property Management

Is it Up-Hill or Down-Hill

Everyone has their own perception and it’s hard to make predictions especially about the future, but I am interested in looking at the residential rental market through the lens of Malcolm Gladwell, an author, public speaker, and journalist with a big interest in sociology and psychology.

In a recent read, Malcolm Gladwell discusses the difference between hierarchy and network systems. For example, a hierarchy system has one person in command with everything planned very carefully, compared to a network system where there are collective leaders instead of just one (which is more of a modern arrangement in today’s world.)

Click here to read more from Celia.

Kind regards

Celia Burbery

General Manager – Property Management
Auckland Property Management

Legislation Timeline Reminder

From 1 July 2021:
Rental properties with new or renewed tenancies starting on or after 1 July 2021 must comply with all healthy homes standards within 90 days.

From 1 July 2024:
ALL rental homes need to comply with the healthy homes standards including existing tenancies prior to 1 July 2021.

Talk to your Property Manager if you have any questions about the compliance of your property. Click here for more information on Healthy Homes from Tenancy Services

Recent Webinars and Recordings

Thanks to guest speaker James Bangerter who recently joined Toni Heath for our online webinar on Commercial property. Details for our next webinar will be sent out soon.

If you missed the webinar you can view it online here.

View all recent webinars and video blogs on our website here.

Body Corporate Management

Body Corporate Winter Market Update

With spring just around the corner, the Body Corporate team have noticed that the winter months have not seen any slowdown in the residential property market. We have seen an actual increase in sales of Unit Titled properties when compared to the end of last year when the market commenced its remarkable upward swing.

We have also seen a record number of owners face extreme financial stress that has resulted in Bodies Corporate having to take the drastic action of commencing legal proceedings against owners who have regrettably fallen well behind in paying their annual and/or special levies. Largely these owners are investors.

With continuing sales momentum looking likely to continue, it will be interesting to see how the following will impact the apartment market:

  • Changes already implemented by the Reserve Bank;
  • Changes that the Reserve Bank has flagged;
  • The prospect of a rising interest rate environment.

Click here to read more from Steve.

Kind regards

Steven Garland

General Manager – Body Corporate
Auckland Property Management

Commercial Property Management

How is your Commercial Property?

In December last year we wrote an article on the things that commercial owners should be thinking about for 2021, now that it is August, how do you think you are going with your commercial property?

Some key points we discussed were:

  • Ensuring commercial owners review the management of their portfolio – where are improvements needed?
  • Encouraging tenants to extend leases – is the relationship between owners and tenants a good one so that tenants would extend?
  • Improving buildings – is planned maintenance getting done, does the building need enhancing to attract tenants?
  • Checking health and safety requirements – are you ensuring that all plans and compliance documents are up to date?
  • Accurate budgeting and finances – is the annual ‘wash-up’ correct and are tenants being charged correctly?

If you own a commercial property and need help with any of the above, then we would love to hear from you. Contact our Commercial team for a free consultation today!

An Introduction to Commercial Property Webinar Recording

Last month we hosted a webinar on ‘An Introduction to Commercial Property Management for Investors’ with our Commercial Property Manager James Bangerter answering some common questions. You can view a recording of the webinar on our website here.

Waiheke Escapes

Welcome to Holiday Homes recently added to our portfolio on Waiheke Island. If you are after a Waiheke getaway after lockdown then check out our new properties below!

Seaview Sojourn

Onetangi

Sleeps up to 8 guests
4 bedrooms
Stay for 3, Pay for 2
Great sea views

Click here to view online

Villa Haven

Palm Beach

Sleeps up to 2 guests
Studio apartment
Stay for 3, Pay for 2
Located in Waiheke Resort

Click here to view online

Architectural Home

Onetangi

Sleeps 6 guests
3 bedrooms
Less than 1km to the beach
Close to restaurants

Click here to view online

Take a look at our full list of properties on the website here including those that are participating in our ‘Stay for 3, Pay for 2’ winter special, or contact our Holiday Accommodation Managers on [email protected] if you have any queries.

See you at the beach!

Staff News

Celebrating Staff Anniversary

Congratulations to Carmen Michie and Jenny Choi, two of our Senior Residential Property Managers who recently celebrated their 10 year working anniversary with us.

Thanks for your dedication over the years!

Meet our new team members

Meet Isaac Brook, a new Body Corporate Manager who has joined our team. Isaac started at Auckland Property Management after completing his studies from the University of Auckland and working in various other property related roles.

Meet Angela Jones, who has recently joined our Residential Property Management team after merging with her property management company. Angela is a Senior Property Manager with a portfolio based on the hibiscus coast and has been in the industry for over 25 years.

7 Questions With…Svetlana Malanina

Q 1. How long have you been working in the Body Corporate industry?

I have been with APM for 7 years.

Q 2. What does a typical day of a BC Assistant Manager look like?

A Body Corporate Assistant Manager doesn’t often have a typical day, it’s hard to prioritise as everything is urgent and we are always putting out fires. It’s like being a captain of the ship trying to stop the ship rolling in a storm. Smooth sailing!

Q 3. What would be your most frequently asked question as a BC Assistant Manager?

Do you have time to help me with….

Q 4. What’s the best way to start your day?

Having a cuppa before switching on my computer to start the work day.

Q 5. Do you have a favourite book, and if so, what is it?

I don’t generally have ‘favourite’ things as my tastes change, however I do love reading books that expand my knowledge.

Q 6. What is your proudest accomplishment?

Seeing my lovely daughter growing into a good, kind and caring person.

Q 7. What do you like to do outside of work?

Experimenting with healthy foods to find new options for a healthy lifestyle.

 

Click here to learn more about Svetlana

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