KEY POINTS:
A subsidiary of residential specialist Blue Chip yesterday said it had sub-contracted its property management in the Auckland area to national real estate chain Harcourts.
Neil Bell, chief executive of Diem, Blue Chip's master franchisee in New Zealand, and Bryan Thompson, chief executive of Harcourts New Zealand, announced
the deal.
Thompson said Harcourts had already taken over managing some properties and would take over the rest soon. The properties were only those in the greater Auckland area but were a "significant proportion" of the portfolio, he said.
Bell said the properties were the "lion's share" of the portfolio.
The move follows a series of problems after Blue Chip clients were not paid their rent and complained about other payment and property issues.
Tenants in townhouses, apartments and other properties owned by the clients pay their rent directly to a property manager who in turn pays those clients.
But in the last few weeks, Blue Chip clients such as Kathy and Martin Faulkner of Mt Maunganui and Greta Norman of Epsom complained that the rent had stopped.
Bell wrote to clients apologising for the problems this month and said that rental arrears would be paid. He also sent out a payment schedule stating that all rent from November would be paid by the end of last week.
The Faulkners said that they got their November rent on time as promised. Greta Norman of Epsom said many investors who contacted her had also been paid.
Norman said yesterday she hoped the new deal struck with Harcourts would mean she would be paid directly by that business.
But Thompson said this was not the arrangement and his firm would pay Bribanc Property Group.
"Under sub-contract, Harcourts' role is to manage a portfolio of properties on behalf of Bribanc which is the property manager for the portfolio. Bribanc will receive the rental payments we obtain from the tenanted properties we are managing for them," Thompson said.
Harcourts' role was to enhance the portfolio, he said.
"Harcourts will be providing specialist property management services, including working to ensure all properties are in appropriate condition to attract and retain tenants at a market-relevant rental level and by doing so minimising vacancy levels within the portfolio," Thompson said.
Bell praised Harcourts for having a proven track record in property management and said he was delighted to employ their services.
"We have the utmost confidence that Harcourts has the experience, people and systems necessary to effectively manage the properties," Bell said.
Thompson also welcomed the business and said it meant an expansion of Harcourts' property management portfolio.