Tuesday, May 24, 2011

Penne’s HOT hint of the month

Being the kind of landlord that’s always up for a great deal (especially when it involves little cost from me and increase the appeal of my property to potential tenants as well as adding value to the property). I was extremely excited when I uncovered the “Warm Greater Wellington Scheme” Most of us are aware of the up to $1,300 (or 33%) towards the cost of ceiling and under floor insulation that’s offered as part of the Warm up New Zealand Heat Smart Programme. If we are lucky we might even be eligible for 60% funding towards the cost if your tenant has a Community Services Card www.energywise.govt.nz/funding-available/insulation-and-clean-heating. The “Warm Greater Wellington Scheme” is a scheme where the balance (up to $2600.00) or portion of the remaining amount can be added to your rates bill and paid off over the next 9 years. www.gw.govt.nz/gw-s-offer/.

So for example my 60m2 unit needs insulation in the ceiling, under the floor and needs ground cover. This would have cost me approx $2800.00 to get a professionally done. With the 33% discount it would cost me $1900.00. The rest of the balance I can put on my rates, increasing my rates by $317.72 per year ($6.11 per week) The bonus is my tenant has a community services card so the balance on my rates will be more like $1000 and only cost me $3 extra per week. My theory is by making my rental warmer it will encourage my great tenant to stay on and its more inviting to potential tenants if and when she does move out.(In this rental climate we need all the bells and whistles we can get to attract good tenants) The measly $3 per week its costing me will be more than covered by rent increases over the next 9 years and its costing me nothing up front. For those who’s budgets are already tight a $5 or $10 rent increase per week to the tenants in lieu of a warmer home would probably be an easy sell. Getting the quotes and doing the figures will cost you nothing and could greatly improve your investments.

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