Investing in rental properties can be risky as not all tenants are as respectful of your property as you would be if living there yourself. There are risks with any investment. With careful research and planning you can minimise the risk of damage and avoid the pitfalls of non-payment of rent and bills that can sometimes happen.
If you venture into renting out your property privately without the assistance and support of an experienced property rental manager than you may experience more nightmare situations with your tenants than if you allow experienced professionals to protect your investment for a small fee.
If you have more than one property you may find your time is taken up with dealing with maintenance issues, finding new tenants and chasing late rent payments. However, employing the services of a property manager can save you valuable time. A property manager may also be able to save you money as they will have preferred contractors on their books who have a track record for being reliable.
10 common rental property nightmares include:
- Non-payment of rent
- Using your property to make or sell drugs
- Extensive damage to your property
- Keeping unpermitted pets at your property
- More people than allowed living in your property
- Noisy parties at your property which disturb the neighbours
- Tenants making structural changes without permission
- Property untenanted for long periods
- Having to evict tenants (can be a lengthy process with no income)
- Disputes over condition reports
Seven tips to avoid rental property nightmares
- Find the right tenants
- Prepare your property
- Make a copy of all legal documents
- Communicate clearly
- Vet your tenants and double check references
- Undertake all repairs and upgrades promptly
- Keep tabs via regular inspections
Finding the right tenants is crucial in avoiding many problems associated with tenants. Having credit and background checks carried out is essential practice when selecting new tenants and will rule out unsuitable or more risky clients at the very start.
Presenting your property nicely creates an important first impression of the standard you expect your property to uphold. Give your property a thorough clean and tidy up any outdoor areas. Repair any damage and consider a fresh coat of paint on the interior walls. Take photographs as a part of an entry condition report to document any pre-existing damage or issues. A property manager should be present with tenants to go over the initial inspection so both parties are in agreement. To avoid unwanted damage to walls, be specific about fixtures that can be used for hanging pictures.
It is very important to establish who is responsible for outdoor areas including gardening, and lawn mowing. Often landlords charge a slightly higher rent to cover garden maintenance costs and stipulate these in the lease terms.
It can be extremely difficult to manage a property on your own if you have limited or no expereince. Instead, you can make the smart choice to invest in the services of expert property managers in Wellington. Engaging the services of local rental managers ensures the smooth running of your investment property.
Careful selection of tenants, regular inspections and being on hand to organise all repairs promptly – all go a long way in protecting your investment. For all your property management needs throughout Wellington, contact the friendly rental managers at Manage My Rental via the website www.managemyrental.co.nz today.