How much is getting a good tenant worth?

Some of our clients prefer to manage their own properties, but they don't like selecting a tenant. Perhaps they realise how much time it takes up, and they don't know the right questions to ask, or they assume the first person to show up is good enough, and learnt the hard way this isn't always so. So they come to us for help.

We can find and evaluate a tenant for your property, get them signed up to a robust tenancy agreement (with 34 legally binding special clauses for your protection), then hand them over to you for the inital inspection and day to day management.

How much is this worth to you?

Saying the right things in the advert to attract tenants, but not mislead, is an art in itself, and it seems taking good photos is beyond many people. A picture paints a thousand words, so make sure they are flattering ones. A good advert makes a big difference to attracting the right people to your property.

Some properties rent easily, but some you need to go to what seems a million times before you finally find a tenant who likes your property, and you like too. That's a lot of time, and travel right there.

Then there is the actual selection process. Calling four referees, checking Tenancy Tribunal history, and credit checks take a bit of time and effort, particularly knowing the right questions to ask. And what not to ask - you don't want to stray into unlawful discrimination - that could cost you a lot of money and stress.

A solid, legally binding tenancy agreement is vital for success. Knowing the peak season for renewing leases can make thousands of dollars difference each year. Using fixed-term tenancies to your advantage. Having all the right clauses that will save you heartache and money, and stand up in Tenancy Tribunal if it is needed can make the world of difference to the outcome of any problems that do arise.

What is it worth? The difference between success and failure, that's what.

Good Reasons for Your Property Manager to Fire You.

When you place your property with a property manager, you are engaging a professional to give you good advice. You pay them for that advice, so you'd better pay attention! There are some things people do which make it tricky for property managers to do their jobs, and put them and you at risk of legal action. Here are a few good reasons for your property manager to refuse to work with you again.

1. Refusing to do essential repairs or maintenance. Under the Residential Tenancies Act, this could lead to a fine of up to $3000 being awarded to the tenants, on top of your repair bill. If you think repairs are expensive, you'll be very concerned about fines on top of these costs. If you think a proposed repair is not essential, then discuss that with the property manager. Be sure you have defensible grounds should it go to Tribunal.

2.Putting the property on the market without letting them know. Tenants must be notified if a property is on the market for sale - it is the law. Contact by the real estate salesperson should not be the first inkling tenants get! Always tell your property manager if you are going to list your property as they will have strategies for keeping the tenants happy, the property in good order for the showings, the rent coming in during the sales process and you out of hot water with the Tenancy Tribunal. It may also affect lease renewals, so don't try to sneak around.

3. Talking with tenants without letting the Property Manager know. No, we are not paranoid, we have seen a lot of trouble come from conversations between landlords who do not know any better and tenants who do. Like rent holidays over Christmas, agreement for improvements, agreement to end leases early. All of which cost the owner dearly. Don't be a chump - if ever you are talking with your tenant (whether it is at the supermarket or the property) and you have a property manager, simply say 'please discuss this with the property manager, that's what I pay them for'. Because you do.

Is it worth having tenants pay a letting fee?

Should you go with a company that charges a letting fee to tenants?

Some companies charge tenants a weeks rent as letting fee, plus 3 weeks bond, plus first rent. Others, like ours, don't ask tenants for a letting fee, but instead get four weeks bond and first rent. From the tenants point of view, it is the same upfront cost. From the landlords point of view, it makes a big difference to how secure their property is. One week extra bond can make a big difference between rectifying any damage or rent arrears, and being out of pocket. Ask your property manager how much bond they charge, and why. Four weeks is the legal maximum - why ask for any less?

We also find better, more financially savy tenants choose to avoid letting fees whereever possible, and they don't mind paying a higher bond because they know they will get it all back at the end of the tenancy as they don't cause damage and they pay their rent on time. Which would you prefer - financially savy, clean, responsible tenants, or the other sort?

Another thing to consider is 'what is in it for the property management company?'. Surely there is the temptation to maximise income by choosing short-term tenants, because they will get their fee again and again and again. Good for the company, not so good for you. Each vacancy costs you money, particularly if you need to sort out issues from bad tenants too.

In our opinion, the best way to get great tenants quickly is to avoid charging them letting fees.

How to impress the property manager

This is the time of year where properties are in high demand, for the good properties you could be competing with 10 or more other people.

How do you get your application to the top of the pile?

1. The initial inquiry
Before contacting the Property Manager make sure you research the area and thoroughly read the ad. It doesn't look good if you stand someone up because when you pulled up outside the property you decided it wasn't for you.
If you email the Property Manager make sure you leave your name and contact phone number. It will save time and get you through the property at the next available showing.

2. Make the first impression count
Do you introduce yourself on arriving?
Do you take off your shoes before entering the house?
How do you walk around the house?

We want tenants who respect the property and are good communicators.

3. Are you prepared?
Have a filled in application form ready to hand over to the Property Manager if you decide you would like to apply for the property.

This shows you are organised.

Most of all be yourself - talk to the Property Manager and ask any questions you have.

Good luck and happy hunting.

She don't drink Speights but.

It's a hard road finding a perfect tenant. When choosing a tenant, it is important to be aware of selection bias. Too many men (sorry boys) have fallen for the pretty young thing who turns up to look at their property, and forget to ask vital things like 'can you afford the rent?' and 'will you actually be living here?'. Yes, sometimes the person who views it is not going to be the occupant, and why do you think that might be? Yep, some tenants know the effect of sex in advertising, and some are not above using it to their advantage, and your disadvantage.


If you know you are prone to the pressure of a pretty smile, make sure you have a robust selection process. It can be as simple as having an application form and making sure you only consider people who actually complete it. Don't justify any gaps on the form - if tenants aren't willing to tell you the information you need, they have good reason to hide it, which isn't good for you.


And of course, ask for references. And then call them! Check they are genuine - that is, not just a mate posing as the old landlord. Its easy to do so, ask them some questions about their investment - you know, one-landlord-to-another kind of chat. It really sorts the posers from the genuine articles.


Your insurance policy may have requirements for robust selection criteria, particularly if you have cover for malicious damage or non-payment of rent. Make sure your claim will stand up to insurance scrutiny by checking your small print and doing the above. Otherwise you are paying too much for your insurance, because no claim will ever be honored.


Too hard? Give us a call and we can take care of it for you, and top it off with our tenant selection guarantee. 04 4711880.