Reader’s Digest has announced its Most Trusted brands for 2021, and Harcourts, New Zealand’s largest real estate brand, has come out on top once again. For the ninth consecutive year, New Zealanders have voted Harcourts their Most Trusted real estate brand, making Harcourts the only real estate brand to achieve this honour since the award’s inception in 2013.

Harcourts Managing Director Bryan Thomson says the continued support from New Zealanders is what keeps the entire team at Harcourts striving to remain at the top. “We are incredibly proud of our teams across the country and we want to thank every New Zealander who has worked with us and voted us number one.”

Thomson continues, “This award really does speak volumes about the reliability of Harcourts’ people who are out there getting the job done. We’ve been looking after the property needs of New Zealanders since 1888, through good times and difficult times, and have continued to support them through the enormous challenges of the past year.”

“More than anything, New Zealanders want to know they are dealing with a real estate brand who they trust and who will do what they say they are going to do. They want to deal with sales consultants and property managers that have expertise, honesty and integrity and who are committed to achieving the best possible result for them. This is something we have been told we excel at and something we plan to continue improving on,” says Thomson.

“We also continue to foster strong relationships with our communities around the country through the work our people do by way of The Harcourts Foundation and the many other charities our team contribute to.”

“To be named the Most Trusted real estate brand for nine years in a row is an outstanding achievement and affirms that Harcourts truly has earned the trust of New Zealanders.”

The Residential Tenancies Amendment Act changed the way that landlords can end both
fixed-term and periodic tenancies.

Landlords must now give a reason to end a tenancy, and the reason must be one of the specified reasons stated in the Residential Tenancies Act. The good news is that when the ability to serve a 90 day ‘no-cause’ termination on a periodic tenancy was removed from the Act, along with removing the ability to end fixed-term tenancies without providing a reason, new reasons to terminate a tenancy were provided.

The new reasons for terminating tenancies which are provided in the Residential Tenancies Amendment Act 2020 address the reasons given by landlords and property managers for issuing 90 day no-cause termination notices. Landlords will be able to end tenancies for a range of fair and justified reasons, including a tenant’s repeated antisocial behaviour or repeated arrears.

The result is that we now have more grounds for ending tenancies than we did prior to the amendments taking effect.

Let’s look into these in detail.

Landlords can terminate periodic tenancies by giving 63 days’ notice where:

Owner moving in – The owner, or a family member, requires the property to live in. They must move in within 90 days of the termination date and must live in the property for at least 90 days. The property must be their principal place of residence, so this removes the ability for landlords to use the property as a holiday home for part of the year, whilst renting it out for the remainder of the year.

Employee moving in – The property is needed for an employee (and this was clearly specified in the tenancy agreement).

Landlords can terminate periodic tenancies by giving 90 days’ notice where:

Selling a Property: Selling a Tenanted Property – A landlord can sell a tenanted property providing that they notify the tenant as soon as the property goes on the market. If a tenant is on a fixed-term tenancy, the tenancy cannot be ended early by either party, unless mutually agreed. The only change to the legislation when selling a tenanted property is that the notice period has increased from 42 days’ to 90 days’ notice when the owner is required, under an unconditional sale agreement, to give the purchaser vacant possession.

Selling a Property: Tenant Required to Vacate – This is a new ground for termination. If the landlord decides that they want to put the property on the market without the tenant in occupation, they may give the tenant 90 days’ notice to terminate the tenancy, providing the tenant is on a periodic tenancy, or their fixed-term agreement ends on or before the termination date. The landlord must then put the property on the market within 90 days of the tenant leaving the property. It is important to note that no marketing of the property may occur during this 90-day period.

Renovation or Redevelopment – The landlord can give 90 days’ notice to the tenant if they intend to carry out extensive alterations or redevelopment at the property, and it would be impractical for the tenant to live there during that process. The landlord must take material steps towards beginning renovations with 90 days of the tenancy terminating.

Demolition – If a landlord is planning to demolish a property, it is a very good idea that the tenant moves out first. A landlord must therefore give a tenant at least 90 days’ notice and take material steps towards the demolition within 90 days of the tenancy terminating. Taking a material step means applying for regulatory consent, seeking engineering or other professional advice, or taking any other significant step.

Other reasons to end a tenancy

Landlord’s Interest Ends – The landlord is not the owner of the property and the landlord’s interest in the property ends e.g. the landlord leases the property and sub-leases to the tenant, and the landlord’s lease ends.

Business Activity – The property was acquired to facilitate the use of nearby land for a business activity and the property needs to be vacated to facilitate that activity (and this was clearly specified in the tenancy agreement).

Change of Use – The landlord wants to change the use of the premises. The landlord must intend to use the premises for the new use for at least 90 days. This could be changing the use of the property from residential to commercial use.

If none of the above grounds apply, landlords cannot terminate a tenancy without going to the Tenancy Tribunal.

New grounds for ending a Periodic Tenancy

A landlord can apply to the Tenancy Tribunal to end a tenancy where:

Rent Arrears – If the tenant has been repeatedly late with their rent (at least five working days’ late with rent, three times in 90 days) and the required notices have been served on the tenant, the landlord can apply to the Tenancy Tribunal for termination of the tenancy.

Anti-social Behaviour – If the tenant has engaged in anti-social behaviour on at least three occasions in 90 days and the required notice have been served on the tenant, the landlord can apply to the Tenancy Tribunal for termination of the tenancy. If the landlord has successfully applied to the Tenancy Tribunal to end the tenancy for either of the above reasons, the Tribunal will decide what the notice period is.

Fixed-term tenancy agreements – If an original fixed-term tenancy was granted before 11 February 2021, the provisions on termination grounds and notice periods before the law changes introduced by the Residential Tenancies Amendment Act 2020 will apply. Please note that this is also true for a fixed-term tenancy (originally granted before 11 February 2021) that is subsequently extended, varied or renewed. Previously we understood that once a tenancy was renewed or extended, the new rules applied. This has been since been clarified by MBIE. If a fixed-term tenancy granted before 11 February 2021 expires and continues as a periodic tenancy, the law changes apply. A fixed-term tenancy granted after 11 February 2021 automatically converts to a periodic tenancy at the end of the fixed-term unless the term is renewed or extended, or a landlord gives notice using the reasons listed in the RTA for terminating a periodic tenancy, or the tenant gives notice. The notice period provided must be the same as if the tenancy was periodic (i.e. at least 63 or 90 days before the expiry of the fixed-term, depending on the specific ground that applies).

Tenants Giving Notice – For periodic tenancies, tenants must now give at least 28 days’ notice to end a tenancy and they are not required to provide a reason. This notice period is the same for fixed-term tenancies granted after the 11 February 2021. For fixed-term tenancies granted before 11 February 2021, the old rules and notice period of at least 21 days applies.

If you have any questions or concerns about the changes to the way that tenancies can now be terminated, please reach out to your Harcourts Property Manager.

This article is featured in  Harcourts Property Management Focus, Issue 3 2021.

When it comes time to sell, we all want to get the best possible price for our property. For many sellers, it can be a daunting process, even if you’ve done it before

It’s common practice for people who are looking to sell a property to ask what the costs are to sell their home. In fact, it’s often the first question they ask a real estate agent. Likewise, asking “what’s my house worth” is usually right at the top of the list. Both are fair questions, but if you want to become a more savvy seller, they’re not ones you should be asking.

If you are thinking of selling your property, it’s important to look for a real estate agent who demonstrates two critical skills: the ability to market your home through all the possible channels available to capture every known buyer, both passive and active, and the ability to negotiate and add value to the transaction.

It’s important to understand that real estate agents are not property valuers. Hiring an agent because they have an opinion on the value of your property that is higher than others is risky business. Never confuse professional desperation (someone who is trying to buy your listing) with professional enthusiasm! A robust and thorough appraisal is required to create a realistic picture of what your property could sell for.

An appraisal should reflect current market conditions and be supported by information on comparable sales, but markets move faster than people and data on settled sales can be over three months old. So, a better version of the question “what is my property worth” is “what comparable sales have there been within the last month”. You should also ask what the “on the market” numbers were compared to the “final selling prices” of those comparable sales, as these can be dramatically different. Professionals will know the difference.

Of course, the fees for selling your home are an important consideration but beware of agents offering deals or inducements. Instead, look for an agent who has a reputation for being a strong negotiator. You want someone who will get you the best price for your property, not someone who charges the lowest fee, and, ironically, could end up being the most expensive because they achieved a lower price.

So, when you ask, “what are the costs to sell my home”, a better question to ask is “what is your company’s policy on conjunctions with other agencies?” You want to know the agent is truly working in your best interests. Some leading agents will refuse to do workins with other agency’s buyers, but the more buyers or bidders, the more your agent can leverage your final selling price. You want an agent that is truly client focused, not agency focused.

Another question to ask an agent is when he or she last did a trade. A trade is a house swap where a buyer offers a trade of, for example, a house plus cash to purchase another more expensive home. You are looking for an agent who has the skill set to create a deal, when an easy one is not there. You are looking for a savvy negotiator and if you are considering going to auction, do your research on the auctioneer as well.

Remember, the agent’s job is to create a market for your property. The active buyers will find your property on the market if your agent is doing a good job. Regardless of how unique you think it is, your property is competing for the attention of buyers and you need to out-market your competition to capture that attention.

Don’t be enticed by agencies that offer to pay for advertising your property. This will only encourage them to cut corners to get their marketing dollars back instead of doing what it takes to attract the top of the market.

Finally, ask questions around buyer profiling, click through rates and social media campaigns the agent has run. Surprisingly, while we live in a digital age there are some agents that are still stuck in the print landscape. If your agent isn’t digitally savvy, you’ll be missing out on this vital channel to market.

In short, hire on competency – an excellent negotiator, a skilled marketer, someone who has your best interests at heart. Ask better questions and you’ll never look back on your decision to sell and think, could I have done better?

This article is featured in Harcourts Property Focus, Issue 2 2021.

If the time has come to sell, preparing your property for viewing can make all the difference.

To help you out, here are six expert tips that will help you get started and make sure your house is looking its best for potential buyers on open home day. These tips won’t just make your house more attractive to prospective buyers, they could potentially increase the sale price too.

Have street appeal. How do you enhance the street appeal of your home? Mow the lawns, make sure the hedging is neat and plant fresh flowers so that visitors fall in love with your home from the get-go. Talk to your local Resene ColorShop staff about quick ways to freshen up the outside using paint – even painting your mailbox could make a difference.

Dress to impress. Dress you house to suit the kind of buyer you think will be most interested in it. Your real estate agent will be able to help you with this. If it’s most likely to be a family, add details and homewares throughout the home to portray a family-friendly setting – from hanging four towels in the bathroom to placing four toothbrushes on the vanity.

But don’t overwhelm. In saying that, make sure the home isn’t just filled with your stuff. People like to visualise their own belongings in their potential new home, so keep it homely but uncluttered. Once again, your agent can give you tips on minimalist styling.

Spring clean! It’s common sense to present a clean home when putting it on the market. Don’t neglect the little details, such as clearing the ceiling corners of cobwebs and replacing old shampoo bottles or wellworn towels. Don’t be afraid to ask friends and family to help out, or to give a final appraisal of the house before you have an open home.

Give it some flair. Your house is almost ready, but what about some stand out design details? Things such as colourful linen on the beds can be a clever way to brighten up a room. It doesn’t need to be extravagant to be beautiful, and the benefit is that you can take the bedding with you when you sell.

And on the day… On open home day, brew a fresh pot of coffee or tea and even freshly baked goods won’t go astray. This will make potential buyers feel welcomed and comfortable.

Source: www.habitatbyresene.co.nz