An article in the NZ Herald recently, with opinions from experts like Olly Newland highlighted a fact that has occurred historically, and is occurring again.
With property prices out of reach of many, and rents continuing to rise, the result can be that people move home, or crowd more persons into one rental in the hope of saving money.
Given the supply deficit in Auckland and the increasing Net Long Term Migration, we are likely to see over-crowding in rentals becoming an increasing event.
The result for our Investors, particularly those near transport hubs could be that they may want to consider increasing the rent and allowing the most amount of people permissible by local council authority (don’t exceed this, or your insurance may be void, and I have seen the result of council clamping down on activities outside the permissible- the result was a big bill for the investor to pay).
If you let the most people permissible in your investment you want your property manager on the ball!
What does a good property manager do?
We use well thought out and specified contracts;
We screen and record the most details to protect your investment;
We ask the for most bond legally possible;
We conduct monthly drive-by to ascertain the external condition of the property and number of the cars for an indication of excessive persons at the address;
We communicate effectively with your Rental Properties neighbours (for a better insight);
We communicate regularly with you;
We know what to look for when inspecting the rental for signs of over-use;
We conduct quarterly inspections (or in accordance with your insurance requirements);
We conduct thorough external property condition reports, and we let you know what needs attention to prolong the life of your investment;
Outside of good property management, it is worth considering the relevance of the history of more people living together in this type of economy….. Can you do something to increase your Returns?
Consider using some equity to move your property to its highest and best use, your highest and best use, is where you get the most out of your property with maximising what’s legally permissible by council, and moving it towards what will generate the best returns.
For your rental property, this will depend on the demographics of the area and the market rent returns, the Ministry of Business Innovation and Employment, and Statistics New Zealand can tell you all this.
If you are going to permit more people in your rental to get better returns, MAKE SURE you use a great property manager, who keeps clear and accurate records! And keeps a close eye that your property isn’t deteriorating faster than what would reasonably be expected.
Call us today, We want to be your ideal property managers.
Read the New Zealand Herald article here: