Property Management

Property rental arrears has reduced from $1.27 million in the previous year to $804,000.

This reduction includes $320,000 of debt that’s been written off and debt recovered by engaging Baycorp, which we engaged in November to help reduce our rental arrears. Baycorp started with a small number of cases. A number of tenants in arrears, who were told their case was with Baycorp, either contacted us to put repayment plans for the debt in place or have paid the debt.

Common fund rental debtors

Tenancies under management

Lease actions completed

Vacancies as at March 2017

Our total portfolio is now 2,051 (2016 2,100) leases, with 282 new leases being established during the year (2016 233). Tenancy levels are subject to ongoing turnover, and most of our 122 vacant blocks are currently either under negotiation or being advertised for expressions of interest and tender. Seventy vacant blocks are classed as underutilised and that haven’t been leased for more than five years due to physical constraints, such as size, shape, location, lack of infrastructure or access issues.

We undertook a project to update our land inspection report. The changes were necessary to get better quality land information from our independent inspectors. The new report will improve our land management and help to develop land use options for owners.

Our mānuka honey project works with land owners and tenants to increase their potential return by harvesting mānuka honey. We’ve started assessing blocks for the 2017/18 season. We currently have roughly 60 blocks on our list but this is expected to reduce over time as we go through our process of assessing the resource, access and viability.

Occupancy as at March 2017