Property has been among the very best kind investments you can make for your future for many years. It’s a wise and safe way to build wealth and millions of people are doing it. With that being said, and knowing that it’s quite common to find someone in your circles who are currently investing in property, property investment is very much a ‘competing’ market.
If you are a property owner you might ask whether you are getting the optimal return on your investment. And if you own multiple properties, you could be asking why some of your properties perform better that others.
With over 30 years of experience in property investment and coaching, we at The Rent Shop – Auckland City & Northshore will share 5 steps to turn your property into investment successes.
1. Make sure it’s in tip top shape!
The first and most obvious is to get it clean, inside and outside. Luckily this is a rather easy process. When a potential renter tours your house, the cleanliness make the first impression. This will also set a standard so when tenants move out, it’s expected to be just as clean as when they moved in.
Get all your carpets cleaned by a professional carpet cleaning company. Carpets tend to hold a lot of dirt, gunk and can have odours. Any paint work issues is something that both property owners and tenants see quickly and should be fixed according to rules. Rules such as filling up and repainting area where portraits where hung.
All features and assets, like lights, taps, ovens etc., in and around the property must be in working order. So do all the repairs necessary so that when tenants move in, they don’t have to inform you of anything that’s not in working order. Do a security assessment of all locks, pins, latches etc. Security is a major concern for any tenants.
Putting in the effort for a house to have proper lighting, will make a huge difference in how a property looks. More light can give the impression of quality, openness and space.
2. Adhere to Healthy Homes Standards
Starting way back in December 2020, you must provide a Healthy Homes Compliance Statement for most new or renewed tenancy agreements. Failure to demonstrate your property’s current level of compliance may result in penalties. All private residential properties must comply with the full list of Healthy Homes Standards within 3 months of any new or renewed tenancy.
If you want to know more about Health Home Compliance, please go to: https://www.therentshopcity.co.nz/healthy-homes/
In a previous article on our blog, 10 Reasons why Property Management is very important, we discussed the importance of marketing your property. You can have the prettiest, most affordable and accessible property on the market, but poor marketing will have you losing out on investment potential.
4. The Legal Stuff
Make sure that your insurance is in order. When you become a landlord, contact your insurer and if necessary mortgage lender and notify them that you are going to use the property as a rental, and that you will not be living there.
This could have a positive impact on your policy as you insurance company may include protection from tenants’ damages. Something your regular insurance policy does not cover. And why not take the opportunity to shop around for better insurance rates and benefits which not only save you money but better suit your rental property.
Make sure to notify your mortgage lender when you change your insurer and update your information so that when you need to be informed of important aspect or changes to your load agreement, you don’t want your tenants receiving that information.
5. Get a Professional Property Manager
Right off the bat, when you hire a professional property manager, he or she should take care of all of the above. That’s part and parcel of what we do for our clients here at The Rent Shop.
They are your eyes and ears and mouth as they take of the maintenance, administration, tenanting and more! Some responsibilities of a landlord can be very uncomfortable, so they do property inspections to hold the tenants accountable. The property manager will then keep you in touch with update you on a regular basis regarding changes.