The key to getting the most out of your rental property is to be business-like and professional. That means careful planning right from the start. It’s also important to know what all your rights and responsibilities are.
Here we go through the steps we recommend to ensure you have a profitable, well-run rental property that keeps both the owner and the tenant happy.
Make sure the property is in good condition and is lawful
It’s a good idea to present the property in a clean and tidy condition. This will help to get people interested in the property and have respect for it once they move in. Make sure any maintenance or repairs are done before a new tenancy begins.
You also need to make sure the property complies with all legal requirements to do with buildings and health and safety before renting it out. This includes complying with the RTA changes. From 1 July 2016 all rental properties are required to have smoke alarms and all new tenancy agreements need to include a statement of the extent and condition of insulation in the property (installation of electrically conductive insulation products is banned). From 1st July 2019 all rental properties must have underfloor and ceiling insulation meeting the required standard where it can practically be installed.
Owners who rent properties to tenants which are not lawful for residential purposes breach these legal obligations and could be ordered by the Tenancy Tribunal to repay rent and other penalties to the tenant.
Rental payments and insurance
Our Property Manager, Chris, can provide you with a rental appraisal showing you how much you can expect to receive in rent each week. It’s a good idea to have a separate bank account ready for rental payments.
Tip: If you rely on this account for any automatic payments (such as rates, insurance or mortgage payments) it is best to have a buffer in case the rent doesn’t go in when expected.
We have a great blog on landlord insurance here that goes into detail about what you need to consider when taking out landlord insurance.
The different types of tenancy agreement
A property can be rented for a fixed‐term period, or the tenancy can be periodic. There are also other special types of tenancy agreements such as service tenancies and boarding house tenancies.
A fixed‐term tenancy is for a set period of time (for example, twelve months) and cannot be ended before that time unless both parties agree, the Tenancy Tribunal orders it, or in certain circumstances that the RTA allows for. A fixed‐term tenancy automatically becomes a periodic tenancy at the end of the term unless either party gives the required written notice that says they want the tenancy to finish at the end of the fixed‐term.
A periodic tenancy is one that has no fixed end date, it continues until either the tenant or the property ownergives the required written notice to end it. A property owner must give at least 90 days’ written notice to end the tenancy, but can give less time (at least 42 days’ notice) in certain circumstances.
A bond is money that a property owner can ask a tenant to pay as security. The bond can be an amount up to the value of four weeks’ rent. A property owner doesn’t have to ask for a bond, but most do. The bond is lodged with Tenancy Services. At the end of the tenancy, the bond should be refunded to the tenant, provided the landlord does not have grounds to keep any of it.
Getting the right tenants
You want tenants who’ll care for your property and fulfil all their obligations. Our property management team carry out a rigorous screen process to find the perfect tenants for your property.
Get the tenancy off to a good start
Our property management team take pride in building a good relationship with your tenant from the beginning of the tenancy and continue to maintain this relationship for the duration. This ensures that should any issues arise they can usually be dealt with in an amicable manner, keeping everyone happy.
Property Inspections, repairs & maintenance
A property inspection is usually carried out once every 12 weeks. Tenants must notify their landlord or property manager as soon as possible of any known repairs that are needed – but sometimes this does not happen and the property manager discovers a repair or maintenance issue during an inspection. Property owners must maintain the premises in a reasonable state of repair and a property manager can arrange for repairs and maintenance to be carried out on their behalf. Tenants have an obligation not to carelessly or intentionally damage the premises, and may be responsible for any damage that they or their guests cause.
By hiring a property manager you can have all the benefits of a rental property without any of the stress or work. Over 50% of landlords say they use a property manager for some or all of their rental properties. If you use goodGround’s property management services, you can rest easy and get on with life while we do the work and make your investment work for you!
We will keep you fully informed at every stage using the best communications method for you.
We will help you find the right tenants and get the right rent. Our knowledge of the local rental market will ensure you get the best return. We know that you expect the best possible rents with the lowest possible downtime.
Call Chris Whaley on 09 283 9674 or 022 3554 221 to discuss how he can help. For further details on the property management services we offer click here.