Maximising Your Rent

How Do You Determine the Best Rent For My Property?
 

We always strive to get you the maximum rent possible; however we also must keep in mind setting the correct market rent to get your property rented as soon as possible. Both factors are important to present your property on the market successfully for rent.
 

To do this, we consider these factors:
 

a) Demand- Is there a high or low demand for properties at present. This can be seasonal and affected by a number of factors.
 

b) What Is Available Now- we look at properties currently available for rent in the newspaper and/or the internet, and consider their location and features for comparison to calculate a maximum rent for your property.
 

c) What We Have Rented Right Now- We compare your property with what we have currently rented, taking into account property location and features.

d) What properties in the area have rented for over the last 6 months.  This data is available from bonds collected.
 

These factors allow us to give you enough information to set the right rent for your property.

Warmer and Drier Homes

This flu season has reiterated the need for having warm and dry homes.  Here’s a quick run-down on things you can do to make your property healthier for tenants:

• Insulate ceiling and under-floor
• Install good heating, such as a heatpump
• Install fans in bathrooms, connected to light by a timer switch
• Install a ducted rangehood over the stove
• Ensure windows can be left open securely to ventilate
• Provide thermal drapes hung properly
• Provide outside area to hang clothes, particularly in wet weather
• Buy properties which get good sun
• Cut back trees which shade the house
• Clean the exterior of mould and mildew and slime
• Clear the gutters
• Unblock drains
• Fix any leaks
• Install an HRV system
• Create windbreaks to shelter the house

What happens if my tenant does not pay the rent?

Paying the rent is always a voluntary action on behalf of the tenant. We can never force a tenant to pay their rent. Even a tribunal can only ‘order’ a tenant to pay but can never physically force them to pay.

If a tenant does get behind in their rent payments, this is the process we follow:
 
1 day behind – we email tenants a reminder to pay rent today.  In most cases, this is the end of the matter, tenants pay their rent.
 
2 days behind- we phone tenants to discuss payment to be made today.  Again, this often prompts tenants to resolve the issue immediately.
 
3 days behind – we issue a 14-day-notice to remedy, which is a legal notice for them to pay the rent or face possible eviction through Tenancy Tribunal.  If tenants reach this point, they usually make payment in the face of such consequences.
 
8 days behind – if they have missed the second rent payment in a row, or we have not been able to contact with them, we notify tenants that we are going to apply to Tenancy Tribunal for repayment of arrears or eviction under Section 56 of the Residential Tenancies Act.  For tenants who are avoiding dealing with their situation, this usually prompts them to respond.
 
21 Days Behind- The 14-day-notice issued will have expired.  We apply to Tenancy Tribunal if not already done so, but now we will be seeking immediate eviction under Section 55 of the Residential Tenancies Act.
 
Tenancy Tribunal may take up to 4 weeks to get a hearing, and we have known this to be longer during busy times of year.  The adjudicator may decide to adjourn a hearing if there is insufficient time to hear all evidence, which may be up to another month to schedule a new hearing time.  They may also reserve their decision, which can also take around a month.
As you can see, the full legal process can be very drawn out and lengthy.

How do we know what needs to be done?

There are two ways we find out about maintenance needed.  The first is when we do a property inspection.  We will write you a report which outlines the things that need doing now, and in the future. 

The second way is when tenants contact us to let us know about an issue.   In some cases we are able to talk the tenant through to a solution (e.g. they have overloaded the circuit and they just need to re-set it), and in others, a tradesperson needs to be sent.
 
Property investors have different levels of involvement, some preferring to leave it all to us to arrange trades-people, others want us to use their tried and true trades-people, while others want to do it themselves.  All of these options have benefits and drawbacks, and we explore these further in another blog.
 
No matter who performs repairs and maintenance, there are some key points to keep in mind:
 
1. Access arrangements – tenants must be contacted 24 hours before repairs and maintenance is done, unless in an emergency.
2. Repairs must be done in a timely manner, and to a standard in consideration with the age and character of the property.
3. Tenants and their belongings are to be respected – they should not need to clean up after trades-people, or have their cleaning items used for this.
4. Sites should be left secure at all times.
5. Rental Results is to be kept informed on the issues.  For example, if the issue is something that should be charged back to the tenant, or has an impact on the tenancy.
 
There are serious consequences that can arise from breaching these key points.  All of our trades-people are aware of the need to treat tenants and issues correctly, thereby minimising risks to you.