The rental market can be an interesting game at times, seasonal when it wants to be, and always turning investors on their heads with constant law changes and tweaks. Currently in Wellington we are seeing increasingly large numbers of properties entering the rental market, especially, because of the changing market conditions, some properties are coming off the “for sale” market.
So what should you take into account before you market your investment property to rent? Here is a list of questions that we encourage potential landlords to ask themselves before renting their property:
Is the property compliant?
It is important to know that from 1 July 2021 all rental properties in New Zealand had to be compliant with heating, insulation, ventilation, drainage and draught stopping within 90 days of a tenancy start date or renewal. If your property is not compliant, we highly recommend making it before marketing your property, otherwise you will struggle with enquiry. Tenants want warm, dry and compliant homes.
Has the property been well maintained?
The property should be well maintained. This includes things such as freshly painted walls every 4-7 years, a clean exterior, and a tidy interior, clean and damage-free flooring. It is important to note that tenants will be more likely to look after a property that is regularly maintained and that has been given to them in a clean and tidy condition. If the garden paths are overgrown and the exterior paint is peeling off, tenants will form a mental picture about the kind of landlord you are.
How can I attract the best type tenant?
When you are considering renting out a property, you must consider your ideal tenant. Things such as a fullyfenced backyard, proximity to public transport and off-street parking options will influence the type of tenant you attract. Additionally, if the kitchen and bathroom are looking tired this is the perfect time to spruce them up.
What chattels are included in the property?
If you are including items such as whiteware, linen or if your property is fully furnished, it is important to make sure that all items are all in good condition and in working order. These chattels must be itemised for your own record, it is also a great idea to include any user guides for the tenants to ensure appliances are operated correctly.
Are you adequately insured?
It is important to consider landlord insurance to cover you in the event of rent arrears or accidental damage to the property during tenancy. We recommend consulting a professional to check that both you and your asset are sufficiently covered. At Tommy’s we partner with REAL Landlord Insurance to offer a ‘special landlord cover package’ to our clients. Ensure you are covered for arrears and intentional/malicious damage.
Do I know my legal obligations and rights?
As a landlord, there are many responsibilities you take on to make sure that your property is fit for tenancy. You need to ensure that you are familiar with your obligations as a landlord including sound knowledge of the Residential Tenancy Act, Privacy Act, Building Act and many more. We highly recommend you take a read over these acts and also familiarise yourself with the recent amendments in the Residential Tenancies Act.
Do I need a property manager?
All of these things can seem overwhelming. At Tommy’s Property Management, it’s our job to ensure that we take care of all these factors for you, making sure that you achieve maximum return on your investment. By choosing to work with us, we can make sure that the hassle and stress of tenanting an investment property is minimised. We even offer a project management service to assist in renovating your investment. To find out more about the services we offer, or to get an up-to-date free market rental appraisal call 04 381 8604.