NELSON PROPERTY INVESTORS ASSOCIATION

December 2011 NEWSLETTER

PO Box 198 Nelson   

Sorry folks but we have no meeting this month. However there have been some important things happening that you need to be informed about.

FLOW ON FROM LAST MEETING

President Godfrey and I had a meeting with Crombie Lockwood insurance brokers who has spoken to us at the November meeting. They are very keen to improve the service they provide to us and build the relationship. We emphasised that the important thing our members are always looking for is good service and competitive rates. The Association welcomes commissions but that is not our main focus. They are preparing a proposal for us. So watch this space.

TENANT OF THE YEAR

The inaugural Tenant of the year competition has been highly successful.

These are the winners.

1st place: Craig Campbell

2nd equal: Barry Woodhead

2nd equal: Judy and Grant Pinkham

The Nelson Mail reporter and photographer turned up at the prize giving which resulted in a positive article in the newspaper. Congratulations to the winners and thanks for those landlords who nominated their best tenants.

Councillor Gale Collingwood said she enjoyed being on the judging panel and thought the scheme was a great idea and it definitely will build a better public image of tenants and landlords.

TRADE ME ADVERTISING THROUGH NZPIF

Those readers who are full financial members of Nelson PIA would have received details of the new wonderful discount scheme provided via the NZPIF membership data base. I and others have spent untold hours entering pages of data and other clever things to get this scheme up and running. A few of you have already discovered that the plug has been pulled at the 11th hour by Fairfax / Trade me. This has been a great disappointment to everyone. Messages keep drifting in from the NZPIF saying they are endeavouring to get it off the ground again. Meanwhile sorry folks but I do not know when or even if the bird will fly again. As of December 2011 it is a dead duck.

HOW IS NELSON DOING COMPARED WITH THE REST OF NEW ZEALAND

It is always a risky thing saying you live in the best part of the country. I recently lost a tenant who took a new job in Wellington at $12 per hour more than he was earning here. Another tenant has returned to Auckland because the opportunities seem better there. The media has been reporting that rents are going up in Auckland because of a shortage of housing there. Our company is always busy and other property managers report very few vacancies and high occupancy rates. I have been doodling around on Trademe and looking at properties to let advertisements.

TM shows how many advertisements are listed for every area of the country. Now we all know that our vacancy list is shrinking but how does that compare with the rest of the country bearing in mind other cities are way bigger than us. The last census of 2006 figures easily available on the net show the number of dwellings in each area. Other tables show the percentage of rentals versus owner occupied and yet again another table show ownership of the rentals that being private versus Housing NZ. Clearly HNZ will not be advertising on TM so by combining these various things together a picture of our market is suddenly available.

I am not sure what is happening in Gisborne. But clearly Tasman followed by West Coast then Nelson with Canterbury following up behind are leading the country on the greatest pressure on rental properties.

This newsletter is published with the Support of SBS Bank and Summit Property management.

So the next time you are comparing apples with apples with fellow landlords / tenants show them this chart.

This surely must be a good reason to put our rents up.

THIS IS THE SEASON TO MY MERRY AND WARY

It is my practice to remind you landlords to be careful at this time of the year.

Tenants (like the rest of us) all come under a lot of financial pressure at this time of the year.

Missed rent is an ongoing problem. Failure to communicate about missed rent despite the natural wish to extend good will, peace and charity, could be your down fall. Remember check those bank statements carefully at this time of the year. With WINZ paying people early and the banks operating a few days later than normal there is little wonder why many tenants miss their rent payments. The longer you leave advising your tenants about missed rent the harder it is for them to fix the problem. The traditional log jam to get Tenancy Tribunal hearings seems to be earlier this year. I already have three tribunal appointments on the 16 January this being the first hearing date of the year. Applications for those hearings were made in early November.

This tuesday I went to the opening ceremony of the Tahunanui Swimming Pool.

All the kids were there, singing and well behaved and lucky, the rain held off. It was wonderful to all these excited faces and when the first group off kids jumped in, breaking a nice big ribbon, it was party time. Also on the other side of the school grounds, a big water slide was installed. The kids won't be bored for many years to come! happy happy kids A bit of physical activity during the day can only improve the concentration the rest of the day. Happy kids learn better and education is the foundation of our society. Paul Drummond, the headmaster was very proud indeed to get this project off the ground. While most schools close pools Tahunanui School now has a great pool for the school and community. In a country as ours, it is so important kids learn to swim! Of course there had been lots of fundraising done over the last years and we as NPIA have also contributed to that. Total costs have been about $ 400.000 and it was amazing to hear how many people have given so much time and labour (and of course money!) There were a few words, there was a sausage sissle for the kids and some nibbles and a cuppa for the adults. On the side of the pool one wall is dedicated to the naming of the sponsors. We can all be proud that our name is in the "Diamond Sponsors" (as there are also gold, silver and bronze sponsors) Great result, and we should be happy to have contributed to this worthwhile project. We have a sign inside in the media room (where we sponsored the sound system) We helped with the playground and now with the pool. The art auction on the yearly school-fair always has our name on it too. NPIA you Go!

Enya van Vliet