Scarily enough, we have now officially moved into the last six months of the year. The shortest day is now behind us and there is light at the end of the tunnel, and soon there’ll be light at the end of the day too! The middle of winter is often a time where people begin to prepare themselves for the big decisions around their portfolios. With summer notoriously being a busy time for both renting and selling, the winter presents a perfect opportunity to start finding out everything you need to know so that you can make the best decision for you. But how do you know whether you should be renting or selling? Here are some top tips on how to make one of the most difficult decisions you’ll make!
Turn to the numbers
The old fashioned mantra ‘the numbers never lie’ still rings true. A large part of your decision on whether to rent or sell will be driven, consciously or not, by the financial aspect of any prospective deal you will do. The first place to start is by organising a rental appraisal and a selling appraisal. Knowing what your house is worth or could possibly return per week, will be a great foundation in your decision on whether to rent or sell. At Tommy’s, you have the benefit of not only a high performing real estate agency at your disposal but also an award-winning property management team. This means that you can rely on the information you’re given and have expert guidance to make the best decision for you. It is important to factor in all of the numbers, not just the headline sale or rental price. Think about the marketing costs, the commission involved in having someone sell your home and the management and maintenance fees if you keep your property. Remember, under Section 16A of The Residential Tenancies Act, it is specified that if you’re out of New Zealand for longer than 21 consecutive days and choose to rent your property, you must have an agent acting on your behalf.
Management and maintenance of your property
If you choose to rent your property, you’ll need to make sure that you’re comfortable with the management plan you’re going to put in place. Remember, a property management agency doesn’t guarantee success. Ensure that your chosen property manager has precise strategies in place to deal with all the potential problems that could pop up and that you are comfortable they will do the job properly. At Tommy’s Property Management, we’re so confident in our service that we offer you a dismissal guarantee, meaning if you don’t like the way we’re going about the management of your property, you can dismiss us almost straight away. Giving your biggest asset to anyone involves a huge amount of trust, so if you don’t trust your property manager to be answering the phone when problems arise, reconsider your choice. Being a landlord isn’t for everyone, but with the right management plan in place, it can be a great way to maintain a foothold in the market.
No harm in trying
Realistically there is no ‘bad’ time to rent or sell. Good homes will always draw plenty of attention no matter what the time of year, but if you really aren’t sure on what to do, renting the property for a specified period is always a good first option. This gives you plenty of time to figure out if being a landlord is for you, and allows you to ensure that the financial side of things can be taken care of for the foreseeable future. If in a year’s time you still aren’t sure, you can get an updated appraisal and look at things again.
Is the property suitable for renting?
Not every home suits being a rental property. With the increase of legislation recently imposed surrounding insulation, heating and smoke alarms, not every family home will be able to be rented straight away. You may need to organise some work to be done to get your home up to the rental standards required. To find out if you need this work done, organise a rental appraisal and seek advice from an expert!
Trust your gut
At the end of the day, deciding whether to rent or sell can be one of the most difficult decisions you will ever make. If you really aren’t sure after you have looked at the numbers, gone over management or sale plans and found out if your property could be rentable, then you just need to trust your gut. Instinctively you will know what the best decision for you will be once you’ve done all of your research!
If you would like obligation free advice on whether your property is rentable, what it might sell or rent for, then feel free to give us a call anytime on 04 381 8604 or email us.