Want Consistent Returns?
As a landlord you need consistent returns. When you can count on regular income from your rental you can rest easy knowing you can meet the financial demands of owning investment property: mortgage payments, insurances, rates, repairs and maintenance. Ideally, consistent returns allow you to make plans for future investment, whether that be alterations to improve rental income or to add new properties to your portfolio.
Getting consistent returns on your Auckland investment property really comes down to three things: price, paperwork, and practice.
Make sure your property is priced adequately. You don’t want to price it too low or too high. When it’s too high the tenants who are renting your property may realise they can go across the street and get a comparable property for less, and you’ll lose good tenants pretty quickly. It’s expensive to turn your property over and provide new paint, clean carpets, and other details to make it fresh and ready for the next person. So make sure your Auckland rental property is priced competitively by keeping a close eye on the market. Consult with professionals, get free rent appraisals, regularly check out the competition, and review market statistics.
Don’t lose money because your paperwork lets you down. Have rules in place that help to determine the actions of every single thing, which is all contained in your tenancy agreements. The agreement must be adequate, properly written, and balanced. Make sure any conditions you add are legally binding – you might want the tenants to have the carpets professionally cleaned at the end of the tenancy but this unenforceable according to current Tenancy legislation. You want the conditions to stipulate who is responsible for which items that may need to be maintained or fixed. It should list all chattels, but be mindful that when they are listed you must maintain/repair them. You can, for example, stipulate that the tenants must keep the property well-ventilated whenever possible, how many cars can be parked on the property. Don’t forget about the garden area, and whether it is to be maintained by professionals or the tenants. If you are not sure about anything just ask us.
Be consistent over the lifetime of the lease with all your tenants. The way you treat your property and your tenant should be systematic so that you avoid missing any details. Here is a short list of some of the things we can take care of for you.
· All of your procedures have to line up with fair housing laws and other regulations.
· Adhere to rules around visits to the property.
· Make sure your property complies with legislation to avoid disputes or legal action from unsatisfied tenants.
· Keep records of every contact with tenants.
· Make thorough inspections part of your practice as every inspection is an opportunity to see issues that may arise before they become serious eg make sure gutters and drains are clear of leaves and other debris; check under sinks and around taps for slow water damage.
· To maximise your ROI, get your property professionally cleaned and ready for incoming tenants. It sets a benchmark that they can easily follow, they know what level of care is expected of them.
· Have a good move-in and move-out process. Be clear so that tenants know what they will be charged for if things get damaged. Take good pictures to document the property’s condition. If you don’t have that documentation, you could lose the ability to recoup your repair expenses via the bond system.
Be systematic if you want to get consistent returns on your investment. Make sure your Auckland property management company is working with you every step of the way to maximise that return.
If you have any questions about ROI or property management in Auckland, please contact us at Firsthand Property Management.