Preparing to rent out your property? Here are seven invaluable tips to help you select the rights tenants, your property is well looked after, and you maximise your return on investment.
1. REFERENCE CHECK
Always ask prospective tenants for references and always call the referees. Many private landlords rely on their assessment of prospective tenants rather than asking them to provide references, but this approach can leave you open to problems down the track.
2. CREDIT CHECK
Referees may be reluctant to make negative comments about a colleague or friend, so it’s vital that you also perform a credit check on prospective tenants. You need the tenant’s permission first before complete the check. “We are using 6 different databases when completing our credit checks on perspective tenants to keep risk to an absolute minimum!” says Madeleine Gilbert, Business Development Manager, Quinovic Takapuna
3. TAKE PHOTOS OF YOUR PROPERTY
You can make huge savings on wear and tear, and minimise time spent involved in disputes, by extensively photographically recording your property’s condition before tenants move in. Your property will be better looked after and the bond can be used to pay for any damages greater than normal wear and tear. If disputes go to Tenancy Tribunal, good photos showing the condition of the property prior to occupancy can help you win the case.
4. CLEARLY OUTLINE YOUR EXPECTATIONS IN THE TENANCY AGREEMENT
The tenancy agreement is the place to outline what you expect from your tenants. The agreement must state clearly if there are to be no pets, parties or smoking, the maximum number occupants, etc. Failure to make specific conditions clear can lead to dispute and if the matter goes to Tenancy Tribunal, an unclear agreement puts you in a precarious position. Also be aware that neither party can sign away their rights under the Residential Tenancies Act.
5. OPT FOR A FIXED TERM TENANCY OVER A PERIODIC TENANCY
You may have a good tenant who is going to pay the rent and look after your property, but if you sign them onto a periodic tenancy instead of a fixed term tenancy they could leave with just 21 days’ notice. This gives you very little time to find a new tenant and creates an unnecessarily long vacancy, costing you in lost rent. A fixed term tenancy enables you to protect against the property becoming vacant at a time of the year when tenanting is difficult, such as late November/December or in midwinter.
6. TAKE THE MAXIMUM POSSIBLE BOND
After meeting prospective tenants and being impressed by their appearance, many private landlords feel that no bond, or only two weeks bond is necessary. But it’s very easy for a property to be damaged, potentially leaving the owner out of pocket for thousands of dollars. In 2010 the maximum bond was raised from three to four weeks.
At Quinovic Property Management we always request the maximum possible bond. We try and make sure the landlords investment is protected as much as possible; says Graeme Henderson, Business Owner of Quinovic Takapuna.
7. LODGE THE BOND WITH THE DEPARTMENT OF BUILDING AND HOUSING
Always lodge the bond. Not lodging the bond with Tenancy Services is illegal, and means you could be fined up to $1,000 if a tenant takes you to the Tenancy Tribunal.
The experienced, approachable team at your local Quinovic Takapuna is committed to providing the best property management service possible. With the backing of Quinovic’s excellent care and return systems, developed over 30 years in residential property management, we’ll help you to avoid the pitfalls of residential property investment while maximising your returns.
For more information call Madeleine Gilbert at Quinovic-Takapuna; Phone: 449 2004 or 021 844 531 Email: madeleine@quinovic-takapuna.co.nz
