Property Management Hints & Tips

Property Management Hints & Tips For Landlords

Are You Buying Tenanted Properties?

Smart property investors Ask Questions...

If you are buying a property which already has a tenant in place, and you think it would be advantageous to have them stay on so you have continuity of rent, you may want to consider these property management suggestions:

1. You may have been told that the property is For Sale "Subject to the existing tenancy". This means that there is a current tenant occupying the property, under certain terms and conditions, and it would be prudent for you to confirm what those terms and conditions are before buying, especially unconditionally.

2. Ask for a Copy of the current Tenancy Agreement. Check that the Tenant named is the current tenant and that no Variation has been entered into, for example where another occupier has taken over the tenancy and this has not been documented!

3. Confirm the amount of Bond actually paid. If the whole Bond has not been paid, or no Bond has been paid, you will want to make arrangements to remedy this. Ask to see confirmation of the bond lodgement. If the tenant has paid a bond and the last landlord has not lodged the bond you will still be required to refund the bond to the tenant when they vacate.

4. Confirm that the rent is being paid on time, and that the rent is paid to the due date. If it is not, confirm how much overdue the rent is and what arrangements have been made for payment by the tenant. Ask to see a tenant ledger.

5. Are there any outstanding issues or potential problems with the tenant?

6. Other interesting points-when was the rent last increased? Remember you can only increase the rent once every 6 months giving the required notice.

If you authorise a Sale and Purchase Agreement "subject to existing tenancies" you are accepting that tenancy as it is. The tenant may be an excellent tenant, or could be a tenant with difficulties. If you do not seek the information, you will not be told.

If it is difficult to obtain this information it may be prudent to add a Clause which ensures you get the information you need.

For Example:

This agreement is conditional upon the purchaser perusing and approving the Tenancy Agreement, and confirming that the Bond and Rent are paid up to date. Should the purchaser in good faith be dissatisfied with this information then this agreement may be voided by the purchaser within 24 hours of receipt of such information.

Rent Increases on Fixed Term Tenancies

Did you know that on a Fixed Term Tenancy it is possible to increase the rent during the term, provided that the Tenancy Agreement provides for this? It is important to make sure your agreements provide for this.

If you are not satisfied with a tenant when completing your due diligence on a property it may be prudent to seek vacant possession upon settlement as part of your sale and purchase agreement. Contact your property manager early in the transaction and we can either negotiate new agreements with existing tenants (after they have been given notice to terminate the tenancy) or we can begin to market the property for new tenants nice and early.

Want to Attract the Best Possible Tenants?

Presentation is the key. Tenants like what you like. They like value for money, tidy presentation and low maintenance. Generally the better you present your property the better class of tenant you will secure. As well as this, good presentation will encourage long term tenancies.

Want to encourage long term tenancies?

We suggest that you are proactive in your responsibility as a property owner and address all maintenance as quickly as possible. It's an important property management rule. This makes tenants feel respected and important which improves relationships. A property manager is only ever as good as the property owner and if we experience delays in owners responding to maintenance requests this results in unhappy tenants. Good security and low maintenance gardens are also goals that all landlords should try and achieve.

Do you experience longer than usual vacancies between tenancies?

The majority of properties in New Zealand are rental properties and as such competition is high between landlords. Some properties are more popular than others and as a result rent faster and attract better tenants. If you experience these vacancies you should discuss with your property manager ways to improve tenantablity.

Some improvements could be designing bbq areas, fencing properties, landscaping gardens, installing alarms/dishwashers, building garages or carports. If you can give your property a point of difference than you will more than often find you secure higher rents, experience lower vacancies and attract better tenants.

View our other recent newsletters/articles for more property management hints and tips!

Property Management Testimonials

"It's a great comfort knowing that like minded investors are managing our property. We know they save us $$$ by only authorising the important repairs. Our Allen Realty tenants have actually improved our property with their own hard work!" G and M Couper, Perth. Read More

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