Tenants on the move: are you ready?

According to Barfoot & Thompson, there has been a rapid increase in online rental property activity.

The agency’s data shows that rental applications rose by 28% in August, as compared to July. Rental property searches online also increased by 26% between July and August.

Barfoot & Thompson director Kiri Barfoot said this signals an early start to the “shifting season”, when tenants begin to look elsewhere for properties that might better suit their needs.

“It’s a typical spring trend, but we are seeing it take hold earlier each year as people try and get in ahead of the crowds.

“It is likely the activity will also peak earlier this year – prior to, rather than after, the Christmas holidays.”

This means that landlords need to be ready to start vetting prospective tenants.

To this end, Barfoot offered the following tips:

• Get references – and check them verbally. Don’t rely on written references: they could be from relatives.

• Visit a potential tenant’s current house and see what sort of state it is in. It is worth checking in with their past landlords too. 

• If a potential tenant says they are employed, ring their employer.

• Ask to see bank statements for proof of income.

• Do online checks of tenancy and credit databases. This can reveal a lot about a potential tenant’s rental history.

• Meet potential tenants in person. Gut feeling goes a long way. But remember that appearances can be deceptive.

In order to attract good tenants, it also pays for landlords to make sure their rental properties are an attractive proposition.

Barfoot said feedback from property managers reveals that many tenants are thinking ahead to next winter and looking for properties which are warm and dry.

“Homes with insulation and efficient heating, such as heat pumps, are highly sought after and we encourage landlords to upgrade their properties in this way.”

Adopting a pet-friendly policy, as well as being amenable to long-term agreements and reasonable repair requests, can also help attract good tenants, she added.

“It’s all about negotiation but remember that many of the things tenants ask for – like insulation, paint jobs or new carpet – are also an investment in your property.”

Meanwhile, rental activity might have increased, but rental prices have remained steady.

Barfoot & Thompson’s data shows the average weekly rent across Auckland increased by just $4 to $496 in August.

This was an increase of less than 1% on July and of just 6% year-on-year (from $467 in August 2014).