COVID-19 Archives - Hamish Turner & Associates

COVID19: Business Continuity Plan

April 6, 2020 by Michelle Faye Antonio

COVID-19: Business Continuity Plan

Ensuring your business survival

The impacts of Covid-19 on health and business are evolving fast. It is essential that every business has a plan for dealing with the fallout from this pandemic.

A plan will give you peace of mind and clarity for decision-making for the future of your business, and ensure you access Government support entitlements and maximise opportunities to preserve your cashflow and profitability. In the worst-case scenario, we want you to have certainty about whether your business can continue and plan around that.

We’ve created some practical content to help you build your Business Continuity Plan. You can download our Business Continuity Template from our website.

COVID19: Analysing the risk

April 6, 2020 by Michelle Faye Antonio

COVID-19: Analysing the risk

What is the risk?

There are a number of new risks for your business because of COVID-19. Here is a list to consider:

1) Increased arrears
2) Increase in vacant properties
3) Inability to complete maintenance and repairs
4) Increase in accidental damage and wear and tear
5) The risk of insurance claims not being accepted due to lack of inspections
6) reduction in fees and no fees due to rent holidays

There are probably a number more however, the primary risk that we need to assess is the risk of arrears. The change in legislation allowing up to 60 days in arrears before termination could have a serious impact on rent rolls at this time.

How do we assess the risk?

One way to measure the risk is to go through your tenant list in your property management software and label them by the risk of arrears: HIGH, MED, LOW. The categories might look like this:

High – works in tourism, hospitality, importing or exporting business, in an airline or airport-related job
Medium – works in all other sectors
Low – works in the health, food, courier, beneficiary

Each property management software will do it slightly differently but most will have a way to tag or label your tenants so that you can create a report on them. For example, PropertyMe use labels. By labelling your tenants you can assess firstly, how many of your tenants are high risk versus low and medium and then that can be factored into your continuity plan.

What do we do with this risk assessment?

Your risk exposure should drive your strategy for the coming 24 months. If you have 25% of tenants labelled as high risk then you should probably adjust your budget for the coming year to manage the potentially worst case scenario. On the other hand if you have 95% low risk then you may want to take an aggressive growth strategy to take advantage of your strong position versus your competitors.

Originally published 2020/04/06 at 4:57 pm, updated 17/03/2021

COVID19: Top 5 FAQ from Property Managers

April 6, 2020 by Michelle Faye Antonio

COVID-19: Top 5 FAQs from Property Managers with David Turnhout

Since COVID-19 became a Pandemic on March 12 we have been trying to keep the property management sector informed and up to date as news is related and things change. As you know it’s been a fast moving beast that has effected Property Management in a number of ways. The sector has had to react quickly and adapt for the changing requirements of the job.

During the past three weeks we written a number of blogs and provided a number of free downloads as problems have come up. We have also answered a number of questions from Property Managers across the country and for our coaching groups.

We thought it might be valuable to the entire sector to see some of these questions and the issues that they have raised. Below are the Top 5 Frequently Asked Questions from the past three weeks. To answer these questions we did a brief interview with HTA Associate and Property Management Consultant David Turnout.

Q1: What can I do about tenants who have lost their income, are stressed out, and can't pay their rent?

David: It’s important to carry out any discussion around rent arrears with a tenant in a calm, compassionate and professional manner. Any requests from the tenant around rent payments should be made in writing and where possible backed up with some relevant documentation. The tenant should also check with Work and Income as they may find that they receive financial assistance to pay rent arrears. After the Property Manager has facilitated an agreement with both the tenant and landlord, a written agreement should be formed with clear details around timelines for repayment and amounts needed to be paid in order to remedy the rent arrears.

Q2: If we give rent holidays then we don't make any fees and still have to manage the property. What should we do about this?

David: A Property Management’s business income is directly related to how much rent is received. Essentially when less rent is received, there is less income and cash flow to pay staff and run a business. Although a rent holiday will mean that the tenant eventually pays the rent arrears, Property Management businesses will need to carefully monitor this area so that they can forecast future income / cash flow accurately. I would recommend obtaining further advice from your accountant with regard to this question.

Q3: Can I evict tenants during the lockdown?

David: Regardless of when a termination notice was served, tenancies can not be terminated during the lockdown period. A tenancy can be terminated if both parties agree, or under some special circumstances. Tenants have the ability to revoke termination notices that they have already been given as they may need to stay in the tenancy during the lockdown period. Tenants will still be able to terminate their tenancy as normal but only if they wish to. As mentioned there are special but limited circumstances where landlords can apply to the Tenancy Tribunal to terminate a tenancy which we have outlined on our website. As there is a maximum fine of $6,500 for any landlord who takes steps to terminate a tenancy unlawfully, we would recommend seeking advice before progressing with a Tenancy Tribunal application.

Q4: Can new tenants move in during the lockdown?

David: Yes, but only in extreme circumstances. The level 4 alert rules were created to reduce movement between properties for the lock down period. If a property manager were to rent out a vacant property during level 4, they would have to find a way to do so without in person contact with the tenant (e.g a property manager could use an existing virtual tour of a vacant property to replace a viewing ). Tenants have kept their existing rights under the RTA and may still be able to move into a new rental property. However, they must follow Ministry of Health guidelines and follow the Alert System rules when moving. Here’s some more information from the Tenancy Services website:

– If parties need to sign a tenancy agreement, this should be done digitally.

– If keys need to be transferred, then extreme care must be taken. Property managers are not classified as an essential service so they cannot go into offices to pick up keys during alert level Transfer could therefore only occur if there are keys available to them at their homes. Physical distancing must be maintained and keys should be sanitised.

-Tenants can only move in a private vehicle with only members of their own household. They cannot hire a moving service during this time.

Q5: What maintenance can we do and how do we find tradies willing to do it?

David: If the maintenance issue falls under the essential services, then an essential services company will be able to perform the repair. Tradespeople are able to conduct maintenance that is essential to the necessities of life or critical to safety. This includes electricians, plumbers and builders so your existing contractors should be your first port of call to see if they are approved to operate over the lockdown period.

Originally published 2020/04/06 at 1:14 pm, updated 18/03/2021

COVID19: A National State of Emergency – What does that mean?

March 25, 2020 by Michelle Faye Antonio

COVID-19: A National State of Emergency. What does that mean?

Over the past 3 weeks the government has been steadily increasing their measures to protect our nation against COVID-19. A brief timeline is outlined below.

28 Feb – first case in NZ
4 March to 15 March – cases increase to 8 people with one hospitalised
14 March – self imposed 14 day isolation for all people arriving in NZ
19 March – border closed to all foreign travellers
21 March – Alert system announced and NZ was at Level 2 (of 4)
22 March – Total cases reach 66 with no link to travel with two cases
23 March – NZ upgraded to Level 3 and level 4 announced for the 25th. Cases reach 102
24 March – cases in NZ reach 155 with community transmission. PM signaled the potential to enforce further powers.

The announcement yesterday by the PM signalled a further announcement to come of a national state of emergency. What does this mean?

Civil Defence Emergency Management Act 2002

When the PM announces a State of Emergency she is drawing on powers given to her by the Civil Defence Emergency Act 2002. This announcement would trigger New Zealand’s National Civil Defence Management Plan that sets out the arrangements, roles, and responsibilities of various agencies in responding to the emergency situation.

This plan is very long and detailed but unlocks certain powers for the Civil Defence:

⚠️ it centralises control and decision making responsibilities of local boards, committees, and government agencies.
⚠️ it provides additional financial support (if required) to local authorities
⚠️ it increases the police and military powers to enforce regulations where it is necessary for the preservation of human life

In a practical sense

This means we may see increased presence of police and possibly military in our towns and cities. They could (if needed) close down access to roads and public places. They could break into private buildings or places and requisition personal property as and if required for the preservation of life. They can stop people from doing anything they deem to be contributing to the spread of COVID-19 e.g. moving around in the city without reason.

If this these powers aren’t enough, the PM has one final gun in her arsenal. The Epidemic Preparedness Act 2006 can allow for the amendment of legislation through direct order by the executive branch. Instead of having to go through the normal process of government the PM can enact new laws swiftly if they are needed to help avert the spread of COVID-19.

The impact on property management companies

For property management it means that business is limited to what can be achieved remotely. No in-person viewings or inspections or routine maintenance. Emergency repairs are considered essential so can be carried out.

In other cases in other countries a national State of Emergency often comes with an increase in crime. I recommend contacting your tenants and warning them to increase their home security (e.g. lock garage and car) and be more aware of the possibility of theft.

Originally published 2020/04/06 at 4:57 pm, updated 17/03/2021

Kick off 2021 with a
Financial Health Check of your rent roll

How can we help?

If there is anything we can do to help you or your business please let us know.

Rueben Skipper

rueben@hamishturner.co.nz
021 1814147

Hamish Turner
hamish@hamishturner.co.nz
027 5699991

About the author

Rueben is an entrepreneur with 20 years of business experience in a number of sectors. In the past decade, Rueben has worked a handful of technology startups (e.g. Timely) in the area of digital sales and marketing. In addition, he has run a social media marketing agency since 2013. He currently owns a property management company based in Dunedin.

You can check out more about his background and follow his VLOG on his Linkedin profile.

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COVID19 – Announcement of No Rent Increases and No-Cause Terminations

March 24, 2020 by Michelle Faye Antonio

COVID-19:
Announcement on No Rent Increase &
No Cause Terminations

Announcement 26/03/20 – UPDATED

On the 23rd of March 2020, the Minister of Finance Grant Robertson announced a freeze of rent increases and an extension of no-case terminations in relation to the COVID-19 pandemic. This has been applied as law through the COVID-19 Response (Urgent Management Measures) Amendment Act.

This will help New Zealanders stay securely in their rental properties with a 6-month freeze on rent increases It also provides increased protection from having their tenancies terminated. The key changes for landlords and tenants to be aware of are:

⚠️ There is now a freeze on rent increases
⚠️ Any rent increase notices from a landlord will not have the effect of increasing a tenant’s rent unless the rent increase has already taken effect
⚠️ Terminations of tenancies cannot occur with the lockdown period except where limited and specific justified reasons apply. The Tenancy tribunal will act as a check to ensure these grounds are used lawfully. These reasons are:
– Where the tenant substantially damages the premises
– Assaults or threatens the landlord, the family or neighbours
– Abandons the property
– Engages in significant anti-social behaviour
– 60 days behind in rent, unless both parties agree

⚠️ Tenants will still be able to terminate their tenancy as normal if they wish
⚠️ All tenants will have the ability to revoke termination notices that they have already given, in case they need to stay in the tenancy during the lock-down period

The time frame for the new measures are:

⚠️ They take effect with 24 hours
⚠️ A rent freeze applies for six months
⚠️ Policy terminations will initially apply for three months
⚠️ At the end of the 3 and 6 month periods, the Government will evaluate whether they need to be extended.

Note: a landlord cannot terminate a tenancy because the tenant has been confirmed with COVID-19. In addition, the tenant is not required to notify their landlord if they test positive for COVID-19. We do, however, encourage tenants to advise the landlord in case the landlord or their agents need to visit the property while the tenant is in isolation.

Kick off 2020 with a
Financial Health Check of your rent roll

About the author

You can check out more about his background and follow his VLOG on his Linkedin profile.

Share this article

REAA Licence 10002029, Excalibre Real Estate Richmond Limited
Excalibre Real Estate Richmond Limited - Licensed Agent (REAA 2008)
257 Queen Street, Richmond, 7020

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COVID-19: Working from home when you’re a property manager

March 21, 2020 by Michelle Faye Antonio

COVID-19: Working from home when you're a property manager

Over the past week there has been widespread changes to business systems to facilitate employees working from home. The speed with which this is being implemented is staggering and in some cases I think there will be some problems.

I’ve been working from home for a decade in a number of roles and it’s not as simple as you would assume. Depending on the culture of the company it can be great or it can be a disaster. I’ve experienced it in both scenarios. A fantastic company with an amazing remote working culture is Timely. I was there for three years working almost entirely from home. I have read up and researched remote working for years now. There are always lots of questions about remote working below are some answers I’ve learnt over the years:

How do you make sure employees are working?

Firstly, if they are good employees they will do the work. Employees are MORE productive working remotely than when they work in the office.Here’s a great article about remote working and productivity: https://www.inc.com/marcel-schwantes/new-study-reveals-why-working-from-home-makes-workers-more-productive.html

How do I manage my team?

Technology and routine is the answer. When I managed a group of BDMs in three timezones working in a fully remote company with 50 staff this was the system we used.

1. 15five.com – a great tool to measure weekly staff engagement and manage company strategy through OKRs.

2. Trello.com – a generic tool for tasks. Manage projects, create to-do lists, assign jobs. You can do everything and anything on this.

3. Whereby.com – when Skype and Zoom were rubbish this was our goto video conferencing tool

4. Slack.com – Facebook messenger on steroids for enterprises. It’s free and amazing. I used to be on this 12+ hours a day, 7 days a week.

The routine

A. 6 monthly – physical get together as a team.

B. Quarterly OKRs recorded in 15five.

C. Weekly
– One-on-one video calls. 30 minutes video calls with manager and employee. Often going over to do lists in Trello or something that has come up in 15five survey.
– The 15five survey completed.
– a day in the office (we had an optional office)

D. Daily ‘stand-up’ on video conference. It was 10 minutes long meeting and we answered three questions each:

What did we do yesterday?
What are we doing today?
What obstacles are stopping us from achieving these goals?

What else should I know?

Over-communicate – write, write and write

Speak in person regularly – written stuff can be misconstrued. In-person is best, video is 2nd, the phone is third.

Establish a routine – work out what times are best for you.

Figure out your working style – early in the morning with time off during the day to pick up kids

Work-life balance – working all the time is easy to do but health and family are important too.

Embrace the perks – surf during the day, pick up kids, do the laundry.

Other great tools I couldn't live without:

Evernote – my every to-do list, notes, links for the past decade
Toggl – This is a great free tool for tracking time. I use this actively with my property management and digital marketing businesses

Originally published 2020/03/21 at 10:26 am, updated 19/03/2021

Kick off 2021 with a
Financial Health Check of your rent roll

How can we help?

If there is anything we can do to help you or your business please let us know.

Rueben Skipper

rueben@hamishturner.co.nz
021 1814147

Hamish Turner
hamish@hamishturner.co.nz
027 5699991

About the author

You can check out more about his background and follow his VLOG on his Linkedin profile.

Share this article

COVID-19: Business Continuity Plan

Ensuring your business survival

COVID-19: Analysing the risk

What is the risk?

How do we assess the risk?

What do we do with this risk assessment?

COVID-19: Top 5 FAQs from Property Managers with David Turnhout

Q1: What can I do about tenants who have lost their income, are stressed out, and can't pay their rent?

Q2: If we give rent holidays then we don't make any fees and still have to manage the property. What should we do about this?

Q3: Can I evict tenants during the lockdown?

Q4: Can new tenants move in during the lockdown?

Q5: What maintenance can we do and how do we find tradies willing to do it?

COVID-19: A National State of Emergency. What does that mean?

Civil Defence Emergency Management Act 2002

In a practical sense

The impact on property management companies

Kick off 2021 with a Financial Health Check of your rent roll

How can we help?

About the author

Share this article

COVID-19: Announcement on No Rent Increase & No Cause Terminations

Announcement 26/03/20 – UPDATED

Kick off 2020 with a Financial Health Check of your rent roll

About the author

Share this article

Other related articles

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REAA Licence 10002029, Excalibre Real Estate Richmond Limited Excalibre Real Estate Richmond Limited - Licensed Agent (REAA 2008)257 Queen Street, Richmond, 7020

Articles

COVID-19: Working from home when you're a property manager

How do you make sure employees are working?

How do I manage my team?

The routine

What else should I know?

Other great tools I couldn't live without:

Kick off 2021 with a Financial Health Check of your rent roll

How can we help?

About the author

Share this article

Kick off 2021 with a
Financial Health Check of your rent roll

COVID-19:
Announcement on No Rent Increase &
No Cause Terminations

Kick off 2020 with a
Financial Health Check of your rent roll

REAA Licence 10002029, Excalibre Real Estate Richmond Limited
Excalibre Real Estate Richmond Limited - Licensed Agent (REAA 2008)
257 Queen Street, Richmond, 7020

Kick off 2021 with a
Financial Health Check of your rent roll