Halogen Hell.

If you want to get to know the clerk at your local light shop really well, install halogen lights.  Halogens can be relied on to last about as long as it takes to drive back from the store with the replacements for the last ones that blew.  If you are lucky, you’ll have time to find the step ladder too before ‘pop’ there goes another one.

Not only is this wasteful of resources – all those bulbs in landfill, all the trips back and forth to the light shop, it isn’t all that energy efficient either.  I’d argue you get more usable light from one 100w incandescent bulb than you do from two 50w halogens.  Not as romantic a light, but more practical.

If you are serious about developing a romance at the light shop, well, sometimes the planet needs to take second place to true love.  If love is off the cards, think carefully about the type of lights you install.

Tenants hate halogens.  Not only do they need replacing every 4.3 seconds, they cost more than regular bulbs to replace.  They are also really hot to touch, so they can’t be replaced the instant they blow, they need to be allowed to cool down first.  Halogen burns – I have a number of scars on my inquisitive fingers to prove it.  That’s what I get for touching the merchandise when I’m light shopping.

They can last longer if the cotton gloves literally go on when changing bulbs.  The oils from your skin can create hot spots, and that’s not a good thing for delicate bulbs.  I’d hate to think of the effect of kitchen splatter.  But, better yet, just install ordinary fittings, not halogens.  You can also fit these with compact florescents too, to save energy.

Have you got what it takes to be a Property Manager?

Rental Results is an award-winning property management company offering high quality property management service to investors with property in Wellington, Hutt Valley and Porirua. While Rental Results is relatively new, the director is widely respected for her expertise, professionalism, and quality of service, and seeks person cut from the same cloth to join our small team.

Our property manager would be responsible for all aspects of residential property management, including but not limited to:
• liaising with clients
• finding and managing tenants
• regular property inspections
• arranging maintenance with trades people
• applying to and attending Tenancy Tribunal
• project managing renovations
• related administration duties
If you have a broad skill-set, this is the role for you.

The person we seek:
• has a positive attitude - no problem is too hard to overcome, and they seek win-win outcomes
• takes pride in their work and has a strong sense of responsibility (sleepless nights if they don't do what they said they will)
• is assertive and can say ‘no’ when necessary
• has sales skills to rent property and gain new clients
• has great time management and organisational skills (we're not kidding)
• has great customer service and ability to relate to a wide variety of people
• has a good judge of character (can spot a liar before it’s too late)
• is calm under pressure and many demands on time and attention
• has good computer skills, including internet and Microsoft Office Suite
• has excellent communication skills, particularly written
• has a clean drivers licence, good credit and no criminal history (we will be checking)

Ideally they:
• have some experience with renovation or maintenance (you know a paintbrush from a plunger – although you won’t actually use either on the job)
• have experience or interest in property investment
• are mature (attitude, not necessarily age)
• are able to have fun, even when the whole world seems to be against them

We will extend your comfort zone and your skill set - if you love being challenged, you'll relish this. This is a position involving a high degree of trust and responsibility, and you will need to be an ambassador for the company at all times. There is no ‘job description’ – you are expected to do what needs to be done. Hours are somewhat flexible, with this full time position conducted any time between 7am and 7pm Monday to Friday and there is occasional 'on-call' work involved on a rostered basis. You will be provided with a cell phone and there is a work car available for use.

We won’t lie to you, with every job there are downsides. From time to time the role can be stressful and disheartening. You may be shocked by what you find on occasion and there will be some long hours in our busy season. However, if you can find the funny side of most situations you will find yourself in an exceptionally fulfilling position. We have a very supportive tight-knit team with a great sense of humour. We do things differently and think outside the box. At Rental Results we work together and capitalise on each individual’s strengths.

You will get to go to conferences and other development opportunities where you will develop a greater financial literacy and will learn a lot about property management and investment- while having a whole lot of fun! You will have access to professional associations and their benefits and you will meet a large number of people, many influential (as they say, you are who your friends are).

We offer comprehensive on-the-job training, so no previous experience as a property manager is necessary. The role would suit someone changing careers, leaving tertiary study, or returning full-time to the work force.

This role can be challenging, but also immensely rewarding. If you take pride in your service apply now with your CV and cover letter emailed to annelise@rentalresults.co.nz. Position to start ASAP.

You must be eligible to work in NZ to apply for this role.

*** Applicants please note: ***

We have an incredible team in place. If you think you have what it takes to be the best, impress the heck out of us! Please research us before putting in your application. To get an interview, show you know your stuff.

Jackie Thomas-Teague
021 681 481
04 4711880

Real Estate Agent Friday, Property Manager Monday.

Last weekend I was looking at a property with a real estate agent.  ‘I’m intrigued by your car’ he said, commenting on the sign-writing, ‘is it your business?’.  I explained that indeed I ran a successful property management company in the Wellington area.  ‘Fantastic!’ he said.  ‘I’m in that industry too.  Our company property manager resigned on Friday, so the office manager said come Monday morning, I’m it’.  Not surprisingly, this was the extent of his knowledge about his new career.  Yup, that’s the quality of property manager some companies have.  Not a career choice, certainly not a vocation, or a calling, but ‘bugger, the seats empty, who’s fool enough to say yes to sitting in it?’.  Sigh.  It is this sort of recruitment process that makes me weep for all the landlords and tenants and houses damaged by such lack of care and passion.  It makes me weep for all the property managers who do give it their all but are tainted with the same brush.  It makes me weep about all the wannabes who apply to work at Rental Results without a clue about what it takes.  That X factor is hard to describe.  I tried to explain the other day to someone that it takes an iron fist in a velvet glove, but that doesn’t really capture it.  Take a look at our recruitment advert here to learn more about the skills and attributes we look for.  Not surprisingly, there are few who fit the bill.  But that’s fine.  We know it takes a special someone to be part of the team and give it what we do.  If you know that special someone, show them our advert.  We are dedicated to having the best property management team in the country.

Test - should you do your own maintenance?

Most people find being a ‘hands-on’ landlord doing their own maintenance, is not as fun as they imagined, particularly when the property manager starts to also nag them to ‘get the work done already before a bigger problem occurs’.  Some of our clients have learned the hard way that they are not cut out for doing their own work, and it really is far cheaper, and a lot less stress, to have Rental Results handle it.

So, before you volunteer to do your own maintenance, ask yourself these ten simple questions:

Be honest, and don't cheat and look at the correct answers below first.
 

1. Am I trade qualified in the field of the work I am about to do?
2. Do I carry sufficient insurance?
3. Will my doing the work invalidate any insurance claim, current or in the future?
4. Can I get it done within 4 hours of being advised of the problem?
5.  Will I get it done then?
6. Do I have all the tools I need to do it safely and quickly?
7. Do I have the knowledge to do it in a tradesman-like manner?
8. Would I be happy to pay someone to do the repair to the same quality as I can do?
9. Can I tell the tenant ‘speak to your property manager about that’ if they ask me for anything?
10. Do I have better things to do?
 

If you have answered “Yes, Yes, No, Yes, Yes, Yes, Yes, Yes, Yes, and No”, in that order, then sure, go ahead and do your own maintenance.  

Any answers contrary to those, go hang up your tool belt immediately, get Rental Results to handle it, and relax.  You’ve just made the world a better place.

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.

What can I do if a tenant commits a breach in a fixed term tenancy?

If the tenant is in a fixed term tenancy and they breach their agreement, do we need to keep them until the end?

No matter whether tenants are on a fixed term or periodic tenancy, if they have breached the agreement there can be steps taken to resolve the issue, including eviction if needed.  The only difference is under a periodic tenancy a tenant can be given 90-days-notice-to-vacate without a reason given.  We feel if a tenancy has been unsatisfactory enough to terminate, the provisions of eviction under the Residential Tenancies Act are preferable to issuing a 90-day-notice-to-vacate.

A dog for every hole?

What is 'below average'?

I’ve been doing a large number of rental appraisals, and recently was asked to view a property in Lower Hutt which was, ahem, below average.   It and it’s neighbor were both in a serious need of repainting, not to mention the rot in the exterior boards including a windowsill which had been repaired with tin.  The front ‘yard’ was concrete and filled with left-over bits and pieces, some weedy garden boxes, bonnets and other panels of cars, moss and slime.  The front door knob and lock had recently been replaced (the last tenants didn't return the keys), but daylight showed around the handle as it didn’t quite fit the hole.  Inside the picture wasn’t much better.  Cobwebs, dirty splattered carpet and walls, bits and pieces from the last tenants, including towels in the bathroom, a filthy toilet… you get the idea.  There was an open fire there, but the landlord said ‘I just tell tenants not to use it as I’m not sure if it is safe’.  I’d bet a dollar it wasn’t safe.  Why it wasn’t checked out or blocked up is beyond me.  If someone is cold, they’ll risk using the fire, safe or no. 

Building code, what building code?

The backyard featured more concrete and a shed constructed by some long ago tenant and used as an extra bedroom over the years.  It wasn’t to building code, needless to say.  The rent was about $100 per week less than it would have been if some really basic cosmetic stuff was deal with (i.e. clean up and chuck out the rubbish, put drapes back on the tracks), and then get a good deal on insulation and heat pump, and hell, maybe splash some paint around, particularly on the street frontage.  The landlord told me ‘it costs too much to do the clean-up.  I just tell the new tenants they can have the first week free if they clean the place up’.  I reckon it costs less to clean it than a weeks rent, and the additional rent by improving the property would pay it back in no time, the rest is then gravy.

Background checks are for wimps!

Obviously they haven’t heard that providing a property ‘reasonably clean and tidy’ is a requirement of the Act, and besides, any tenants who wanted to move into it in that state would not be the kind to do a great tidy up, and leave it tidy themselves, so perpetuating the problem.  How many free weeks do they want to give away?  The landlord went on to tell me that he doesn’t do background checks, because ‘if they can stomp up with the bond, and they seem OK, then they’ll be good enough’.  I hear drug dealers and pimps are pretty flush with cash, but hey, what would I know?  I do background checks and I don’t seem to get those kinds in our properties.

It's never cheaper than now.

I left the property smiling, glad that there are properties like these to take the tenants I won’t take.  I feel sad for the property owner though, they’re missing out on thousands of dollars every year, and getting bad tenants damaging their property to boot.  It’s never going to be cheaper to fix the issues there because they will just get worse in time.  If their plan is to sell the property at land value, then fine, they should keep improvements to a minimum.  However, every human being deserves a clean home.  Thank goodness they were only wanting dogs.

Bad Tenants = Short Term Investor (why choosing great tenants, or getting someone else to deal with them, is the key to staying in the game)

Wellington Property Investors’ Association recently had experienced investors come and talk to their meetings every Monday during May.  The plan was to reveal different investing strategies that work for investors and the plusses and minuses of these.  However, the unintentional but recurring theme throughout all the talks was the importance of getting good tenants.  Every single speaker mentioned just how vital this was to their success.  Many had developed robust strategies for choosing great tenants, often refined from making plenty of mistakes!  One warned about the perils of renting to family members.  Another found they had a brothel in their property, and a whole heap of unauthorized renovations.  Another had a tenant who infested the entire 11 room property with bedbugs.  Funny stories in hindsight, but all experienced their fair share of stress when it was going on.  It is often easy to give up and sell when a bad tenancy situation arises.  And many a landlord has used the old ‘house is going on the market, you’ll have to leave’ excuse to avoid confronting a less than perfect tenant.  Sadly, the market is not always kind to them, and their investment experience dints their confidence and their bank account.  I know several people who have sold properties for less than they paid for them just because they wanted the pain to end.

A bad tenant is a hiccough in your investment journey, it doesn’t need to be the end.  One bad tenant is an education and a valuable experience.  Two bad tenants, and you should consider doing things differently.  Three or more bad tenants?  For goodness sakes, improve your property (get advice on the top priorities) and get a competent property manager looking after it lickety-split.  Clearly you are not cut out to pick tenants yourself.  Can’t afford a property manager? Really?  How much does sorting things out after bad tenants cost you?  What damage was done to the property and your psyche?  What is the value of peace of mind? 

A number of our clients comment that our service is actually free for them, because things go so much more smoothly, they get better rent, the property is filled faster, and they get time with their families again.  One even credited us with saving their marriage.  We didn’t know we had, but nice to be able to help.

So if you have a bad tenant that is putting you under stress, don’t give up, get help.  Rental Results, that’s what we do.

How often do you go to Tribunal?

A client of mine commented recently that they had been to a seminar where another property management company was presenting, and they said they never had been to Tenancy Tribunal, and were promoting this as their point of difference. So, my client asked me, "How often do you go to Tribunal?".
Frankly, we go more often than we would like.
Accurately, even once would be more often than we would like.
Also accurately, we do very well at Tenancy Tribunal and have a very good success rate when there are issues that need to be resolved but couldn't be resolved otherwise.
Property managers who don't take tenants to Tribunal are perhaps not looking after their client, the landlords, best interests. I have seen for myself many instances where landlords are dissatisfied with the care shown by tenants, and by proxie, their property managers. Stains on carpets are left as they are, chalked up to 'wear and tear' rather than asking the carpets to be cleaned or paying for the cost of patching these to be paid. This is only one example of many where damage is in excess of 'fair wear and tear' and is the tenants responsibility to put right, but the property manager ducks the confrontation and lets them get away with it. Over time, these things add up, and the property rents for less and less, and attracts lower quality tenants, which further damage the property. Alternatively, the landlord needs to pay for these repairs, which erodes the income they are supposed to be making from the property. One way or another, a property manager who does not hold tenants responsible for their own actions costs the landlord.
The property managers who boast that they do not go to Tribunal will state this is because they are 'just that good' they never have any issues. Ha ha ha ha ha! Yeah right. That would only be the case if they were dealing with machines, not people. People are infinately variable and are motivated by a huge variety of factors. People have changing circumstances, which can sometimes mean they don't live up to their own standards, and may not leave a tenancy as they intended to. Another reason a property manager could boast such is they have so few properties they don't get much experience at all. Or they try to stay out of Tribunal as they know their own actions would not withstand scrutiny. Or, they failed to collect sufficent evidence to prove their case.
We're not afraid of such things. We know our processes and behaviours are robust. We know we have the evidence we need to prove our case. If tenants don't fulfil their obligations, we are not afraid to do what we need to in order to protect our clients.
We do go to Tribunal. It is more often than we would like. But it is not more often than our clients like.

How to check references

We think we are pretty good at reference checking prospective tenants. I know we are, because we guarantee it. If we were no good, it would cost us too much to do such a thing. So, what do you need to know about reference checking?

1. Do it. The quick look up and down and judging a person by their handshake just doesn't cut it. Do call their referees and ask about them. Be suspicious if they don't give you any details, or have no one they can offer, or phone numbers are all wrong. They won't have been born yesterday, so don't act like you were. Everyone has a history, insist on delving into it.

2. Qualify the referees. How much weight should you attribute to different referees? They are not created equally. I'd attach more importance to what their landlord and employer have to say about them than their dear old Aunt.

3. Know what information you can get on-line about someone, and if there is any restrictions on using that information. For instance, know how to look up their Tenancy Tribunal history. Know how to do a credit check (and make sure you have consent to do so, or you may never be allowed to do another one again). Is Googling them useful?

4. Have some good questions to ask referees, and know how to verify information. Perhaps you ask the same question in different ways. Or keep the questions open-ended.

5. Do ask questions of the referees to verify they are really who they say they are 'so, how long have you owned the property? Have you seen much increase in value for you during this time? Why did you decide to buy it? - all these can be asked of 'landlords' to check they really own the property. Pretenders will soon fall flat on their face).

6. Watch for inconsistencies. Don't try to explain away anything that is contradictory. Find out the real story by asking them about it. E.g. 'You said on your application you don't smoke, but one of your referees said you do - can you explain please?'.

7. Listen to your gut, as well as your ears. Do you sense hesitancy? Holding back? Outright lying? Warning Will Robinson! Either ask them about it, or choose someone else.

Reference checking too subtle an art for you? To confrontational for you? If so, get someone else to do it, like the team at Rental Results Property Management. We pride ourselves on our tenant selection.

It’s not just what you know, it’s who you know.

Very few landlords contact previous landlords of a prospective tenant to get references. While I think that is a more than a bit foolhardy, I know some landlords will just say nice things to get them out of their property, especially if it is not true. I was reminded of this recently while doing one of our background checks on a prospective tenant. The landlord was someone I knew, so for his protection, let’s call him ‘M’. The call went something like this:

“Hi M, how you doing? It’s Jackie here, I’m ringing because (tenant) has applied to rent a property from me. He’s a tenant of yours right now?”

“Oh hey Jackie, how’s it going? I thought (tenant) was looking around. He’s asked me for another place in my properties, but I’ve refused. He’s really grotty, our housekeeping team refuses to go into that apartment. He’s late with his rent and needs to be reminded, and he’s never set up an AP, although we’ve asked him to. I wouldn’t recommend him at all.” M spurted.

“Really, that’s a pity. Thanks for being so honest with me” I say.

“No worries. If you were anyone else, I’d give you the ‘yeah, their fine’ spiel, but because I know you… I wouldn’t do that to you”.

So, it pays to be well connected, you’ll get more honesty from other landlords. I’d like to say this was the first time I ever encountered such a thing, but it happens all the time. If you are a landlord, the best protection against bad tenants is to be well connected and do background checks.

To develop connections with other landlords, join a property investors association like Wellington Property Investors' Association http://www.wnpia.co.nz. If you don't know what background checks to do, research it on http://www.dbh.govt.nz or get property management from a company like Rental Results http://www.rentalresults.co.nz - our tenant selection is so good, we guarantee it.

No One Complains About You.

Over a few drinks recently, one of our regular tradespeople remarked to me "You know Jackie, I work with lots of property management companies all over Wellington".
"Yes, I know" said I, wondering where this was going.
"Do you know, when I'm at your properties, I never hear the tenants complain? I never have neighbours come up to me and tell me how bad your tenants are".
"Really? Surely that isn't unusual" I said.
"No," he said "It's very unusual. I always have other peoples tenants complain to me about their property managers. Never about Rental Results".
Hugely flattered, I turned to another Tradie in the room from a different industry and asked him if that was his experience.
He thought for a moment, and said "He's right. I've never had any complaints about you guys. Plenty about the other buggers, but none about Rental Results. When I pull up outside a property in my van, neighbours will come out and tell me what the tenants are getting up to, but not for your properties".
Now, it wasn't just that it was my shout for the drinks. These guys were genuine. And I have no reason to doubt them as we have very few tenant complaints to us directly either.
We manage to walk the line of looking after landlords interests at the same time as meeting tenants expectations for good customer service. That isn't an accident, it is something we set out to do each time we meet a prospective tenant. We have tenants remark to us that 'we have never had a property manager show so much interest in us and what we wanted before'. It carries on through the tenancy and we have a good record of getting back properties in good condition as the tenants care that we care.

Letting your Property? Get the Rent Right.

Did you know you can get a free rental appraisal from one of our property experts at Rental Results? Our team specialise in areas of Wellington, Hutt, and Porirua so you can get an accurate appraisal of what your property is worth.

Lots of landlords say ‘I can’t afford property management’, but they can ill afford the time to look after their property on top of everything else they do in life. The reason they can’t afford property management is that they are not getting all the rent they should from their property.

Here are some signs you are under-renting your property:

1. The phone rings hot/emails pour in when you advertise

2. You have queues of prospective tenants at the open home/showing.

3. Tenants offer to pay you more for the property.

4. The people who come to see it say ‘wow, I can’t believe how nice it is’.

5. People looking at your property are younger/not as financially established as you would have hoped.

While you could feel smug that your property is so great you are turning people away in droves, think of how much it is costing you. Ever $20 below market rent is $1,000 every year you are not getting for the property. Would you be happy to spend that much on advertising? Or accept that much rent-arrears without a second thought?

A new client told us they wanted $450pw for their Whitby property. We signed up a tenant for $530pw. That’s $4,000 extra each year! Did we just pay for ourselves? Heck yes, twice over.

If you have a vacancy coming up, ask us for a rental appraisal. You just might find that property management is effectively free for you too, or even find we are even paying you to manage your property with all the extra rent you get, just like we did for our Whitby clients.

How good are we really?

Net Promoter Score is an accurate unit of measurement of client satisfaction. It is worked out by asking clients 'the ultimate question' and based on the responses, getting a score which could range from negative 100% to positive 100%. Members of an industry tend to score similarly to each other, and their relative rank can be worked out. For instance, the banking industry has a range from negative 30 to positive 8. Used car salesmen would rank even lower!

A property management company in Brisbane surveyed landlords and discovered an average Net Promoter Score of negative 22% for property management locally. I think it would be fair to say this would be true all over Australia, and even New Zealand. Not many people have positive things to say about property management, sadly. Incidentally, the company conducting the Brisbane survey is regarded as the best in Brisbane, and they scored negative 11%. They were horrified by that, but it is all relative. They out-performed their competition significantly.

We asked our entire database 'the ultimate question' and had a representative sample of responses come back. Our score? Positive 36%.

Wow.

That means we wipe the floor with the competition. The majority of people on our database are raving fans of what we do (please note, we had responses from people who did not use us yet either. Had we just surveyed our clients, our score would have been higher, quite likely, 42). 56% of respondents rated us 9 or even 10 out of a possible ten.

What is 'the ultimate question'? No, the answer isn't the meaning of life, the universe and everything. It is simply "On a scale of one to ten, ten being the highest, how likely are you to recommend Rental Results to family and friends?".

So you can see why people from all over the planet (and soon, the Galaxy), like having Rental Results manage their property in the Wellington Region.

Essential Reference Checks

We are currently in the process of tracking down a tenant we inherited. The owner was dissatisfied with service they were receiving from their old property manager and passed the property and tenant into our hands. The tenant abandoned the property within a few weeks of us taking over management and the matter was referred to the Tenancy Tribunal.

As part of our application and the following debt collection of outstanding payment we needed dates of birth and other crucial information about the tenants. The previous Property Manager would not pass any information they had on the tenant to us beyond the tenancy agreement and rent record. Were they just being difficult due to the fact we had taken over management of the property? Alas, no. They did not have basic information that all Property Managers and Landlords should collect about tenants. This includes photographic ID (Drivers Licence or Passport) for all adult tenants. This would reveal their date of birth which is a key piece of information needed when chasing a debt. We also ask for several phone numbers and alternative address for service so that they can be contacted at the end of the tenancy. We also like to know all the names of the people who will be residing at the property.

These tenants were particularly slippery fish. Our research uncovered numerous Tenancy Tribunal applications against not only the head tenant but also of the other occupants. This should have been picked up when doing background checks and with the knowledge of the tenant’s history they should have never been offered the property.

As part of our regular checks we also check for aliases by combining first names and surnames of applicants. Doing this we uncovered several more Tenancy Tribunal applications against these tenants and currently have uncovered the total of 5 applications where they have abandoned property with rent in arrears and caused damage. This was in the last 5 years! No landlords should ever have to deal with these people. Unfortunately someone has rented them another property and we have a pretty good idea how that will end.

We also Google prospective tenants. This usually can confirm their place of work and other information they have put on the application form. It also can bring up information that helps you decide against them as tenants. The tenants mentioned above had a history of being director of companies that had been struck off and fraud charges brought against them. They changed accountants and addresses for service on a regular basis. Though this is not always an indication that a tenant is going to turn bad. Everyone can fall on hard times. But the information we gathered on these tenants movements over the last 10 years has revealed that they move around, are untrustworthy and would never be able to rent a property off us.

To save yourself undue stress and financial strain you must do the following before signing up a new tenant for a property:

Get a copy of their photo ID. This will confirm their full name and date of birth.

Check the Tenancy Tribunal website https://forms.justice.govt.nz/search/TT/ try variations of all tenants’ names. To get the most possible matches only use the first initial for the first name and first three letters of the surname. Also try the children’s names. If the family have different surnames search every first name with each surname. If you know middle names try them as well.

Do a credit check. Follow up any anomalies.

Google them and see what comes up. Check Facebook, Twitter etc. You could discover they hold a lot of parties!

Verify all referees are who they say they are. When checking work references call the reception of their workplace and ask to be put through, rather than call a mobile number. A mobile can belong to anyone.

If you don’t like what you are seeing, don’t go with the tenant, even if they give you a ‘perfectly plausible’ reason for all the stuff that happened in their past. Badly behaved people tend to attract bad luck. Don’t let it rub off on you.

How to make your rental investment more attractive to tenants

We have many ex-state homes on our books and in a few situations the homes are identical. This gives us a great opportunity to see what makes a property more attractive to potential tenants and what will increase its popularity and help it achieve a higher rent.

We recently added a new property to our portfolio. While visiting the property for the initial appraisal I had the odd feeling of deja vu. It wasn't until later that evening that I realised that though the cladding was different the basic floor plan was identical to a property that was only a 2 minute walk away. The previous owner had made some minor changes to the property. They had opened up the kitchen area by removing the laundry room. They had also modernised the bathroom and kitchen and installed a heat pump. Other than that the bedrooms and living room remained the same. This property proved very popular and we managed to rent it quickly for $350.00 per week. The property down the road was more attractive from the outside and had a fenced back yard but had trouble renting for $290.00 per week.

In another suburb we have another 2 properties that had the same original floor plan. The previous owner of one split the living area into two making it into 2 very small bedrooms and made the larger bedroom into the lounge. This made a 2 bedroom property into a 3 bedroom. They currently get around $315.00 per week for the property. The house is on a large bit of land and also has a garage. A few houses down the road is another house is on a subdivided section, which has no garage and is in its original condition. This property gets around $280.00 per week. All these properties are in a similar location so the potential to increase the rental on these properties is huge.

The third property is in a block of 2. The only difference between the 2 is that one has been well looked after. Maintenance has been attended to on a regular basis and the property has had good tenants in it who have looked after it well. This unit is the back one of the 2 and only has a carport. This is rented for $300 per week. The front unit on the other hand has a double garage and large storage area and it also has great sea views. On the downside maintenance has been neglected and the tenants did not take care of the place (please note: we were not managing this property!) This unit despite all the positives it had going for it was only rented out for $260.00 per week. Remember the other was achieving $300.00 per week.

We've just taken on the front unit. Under our care it has recently undergone a thorough clean and tidy and a modern paint scheme. The bathroom and kitchen are still yet to undergo modernisation but in its current revitalised state we have an applicant who is willing to pay $310.00 per week for the property. That's $50.00 extra per week or $2600.00 per year for a bit of well needed TLC. A recent valuation of the 2 properties revealed that lack of maintenance made a $20k difference between the units. Again, with the potentially better property being valued lower as it was neglected.

With so many houses available on the rental market its important as landlords that we make the right decisions with maintenance and work that is needed to our property. A small insignificant change such as a good clean and a fresh colour scheme can greatly increase the appeal of a property. When making substantial improvements to the property its important to investigate what the market wants as the wrong expensive renovation might not improve your rental yield. While other well thought out changes could not only put significantly more money in your pocket but may also significantly increase the value of your property and its appeal to potential tenants.

When we do rental appraisals we are happy to share our observations with clients and prospective clients on how they could improve their rental yeild and property value. Book your free appraisal today to get the benefit of our experience.

How important are the photos on your Trademe advert?

One of our landlords recently moved overseas and asked us to rent out his family home. The weeks before he moved the house was fairly chaotic with preparations for the move and the tidying up of the house. It was hard to take good photos of the property as the place was in disaray due to packing and construction work. I managed to take a few photos and listed the property on the Internet. Admittedly the photos did not portray the property in the best light as I was trying to avoid suitcases and boxes. There was very little interest in the property and I was contemplating having to reduce the price. Once the owner had moved out I went back to the property and took additional photos. Within 2 hours of uploading the new photos I had 2 inquiries and another 2 in the following 24 hours. These people were extremely keen to view the property. The wording on the advert remained the same. The only change that was made was clean uncluttered photos that demonstrated the best aspects of the property.

We frequently see adverts with dark dingy photos, photos tilted on the side, contain people or show unappealing parts of the property. People generally will inquire about properties that they can see themselves living in. They don't want to live in a messy cluttered house with dishes on the sink. They somehow think the house is messy, not the current tenants. They imagine when they move into the house it will always look messy despite how much of a neat freak they are. However it can work both ways. A house that is presented nicely, colour co-ordinated with "nice" furniture leads people to believe that it will still look like that when they move in with their old mismatched furniture and the current tenant has moved out with all their "nice" furniture.

To make the best impression and attract the best enquiries present your property in the best possible way. Have it clean and tidy, well presented, and clutter free.