Kiwis have a love affair with residential property and the majority regard it as a wise and safe way to build wealth.
The Rent Shop says knowing that it is quite common to find people investing in property, property investment is very much a “competing” market.
If you are a property owner you might be asking whether you are getting the optimal return on your investment. And if you own multiple properties, you could be asking why some of your properties perform better than others. Below are five tips:
Make sure it’s in tip top shape
The first and most obvious is to get it clean, inside and outside. Luckily this is a rather easy process. When a potential renter tours your house, the cleanliness makes the first impression. This will also set a standard so when tenants move out, it’s expected to be just as clean as when they moved in.
Get all the carpets cleaned by a professional carpet cleaning company. Carpets tend to hold a lot of dirt, gunk and can have odours. Any paint work issues is something that both property owners and tenants see quickly and should be fixed according to rules. Rules such as filling up and repainting areas where portraits where hung.
All features and assets, like lights, taps, ovens etc., in and around the property must be in working order. Do all the repairs necessary so that when tenants move in, they don’t have to inform you of anything that’s not in working order. Do a security assessment of all locks, pins, latches etc. Security is a major concern for tenants.
Putting in the effort for a house to have proper lighting, will make a huge difference in how a property looks. More light can give the impression of quality, openness and space.
Adhere to Healthy Homes Standards
From December 2020 landlords have had to provide a Healthy Homes Compliance Statement for most new or renewed tenancy agreements. Failure to demonstrate your property’s current level of compliance may result in penalties. All private residential properties must comply with the full list of Healthy Homes Standards within three months of any new or renewed tenancy.
You can have the prettiest, most affordable and accessible property on the market, but poor marketing will have you losing out on investment potential. If nobody knows about it, it is detrimental to your success as a landlord.
A good property manager will bring awareness to your property in multiple platforms, online and off. Once a prospective tenant visits the property the property manager guides the tenants in and around the property highlighting as much information as possible.
The detail in the marketing process is also incredibly important. This can make all the difference when your tenants are standing in the very rental property they desperately want but don’t know it.
The legal stuff
Make sure that your insurance is in order. When you become a landlord, contact your insurer and if necessary mortgage lender and notify them that you are going to use the property as a rental, and that you will not be living there.
This could have a positive impact on your policy as your insurance company may include protection from tenants’ damages, something your regular insurance policy does not cover. And why not take the opportunity to shop around for better insurance rates and benefits which not only save you money but better suit your rental property.
Make sure to notify your mortgage lender when you change your insurer and update your information so that when you need to be informed of important aspect or changes to your agreement, you don’t want your tenants receiving that information.
Get a professional property manager
Right off the bat, when you hire a professional property manager, he or she should take care of all of the above. That’s part and parcel of what they do for their clients.
They are your eyes and ears and mouth as they take of the maintenance, administration, tenanting and more.! Some responsibilities of being a landlord can be uncomfortable, so property managers do property inspections to hold the tenants accountable.
The property manager will then keep you in touch and update you on a regular basis regarding changes.