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Palmerston North Property Management In The Manawatu

Posted on: Tuesday, April 1 2014

Get Tenants, Keep Tenants, Get top dollar!!

Naturally, all landlords want to find good tenants quickly and have their occupancy rate high, perhaps even rented fifty-two weeks every year at market rent!

Supply & Demand

In Manawatu towns like Palmerston North, Feilding and Pahiatua, the demand for rental properties stays reasonably steady. Sure, within this market there are peaks (multiple tenants wanting to rent) or lows (where enquiry levels drop.) Typically there are more enquires in the summer months than in the colder winter months.

The rental market mostly stays in the middle of the graph; not high or low, just steady.

The thing to remember is you cannot control what the general market is doing. What you can be in control of is:

1. How well your rental is presented to give you the edge and make it stand out to keep tenants longer.

2. When your property becomes vacant, the ability to get it rented faster with quality tenants.

Depending on the location, the type of property and your budget, these will all affect what needs to be done to achieve High Occupancy at Market Rent.

What Affects Your Tenant Pool?

●          Location, street, neighbourhood,

●          Number of bedrooms & size,

●          Presentation inside & out,

●          Local amenities close by, i.e. schools, shops, restaurants, entertainment…

●          Near to tenants workplaces,

Go to allwaysproperty.co.nz/about/newsletters/  to get more ideas.

 

“You make your money when you buy” – Manawatu Real Estate

Manawatu Real Estate

Talk to any savvy Investor or go to a property seminar and you will hear this statement: “You make your money when you buy.” This really says it all. If you have the worst property in the worst street in the worst suburb, you may be up the proverbial creek without a paddle. The best thing you may ever do in that situation is to sell even if you lose money.

The art of tenant selection

Selecting the right tenant for the right property is the first and probably the most important key to achieving a long-term tenancy. There other factors that affects this process, some of which were covered above.

Here at All Ways Property we have a policy that all prospective tenants must have at least two referees, preferably three. (You need a robust application form that gives you the information needed to process and select the most suitable applicant.)

For our recommended selection process go to our online newsletter and read the Tenant Selection article.

Fixed Term Tenancies to keep tenants

It is all about best R.O.I. while reducing risk right?

Fixed-term tenancies are for a specific length of time and automatically become periodic tenancies upon expiry of the fixed term. They cannot, be ended by notice during the term except by mutual agreement.

To prevent the fixed term tenancy becoming a periodic tenancy either party may give notice to the other that they wish to end the tenancy at the end of the fixed term. That notice needs to be given no more than 90 days before and no less than 21 days before the expiry date.

In this period if a tenant wants to stay longer than the expiry date, a Landlord has the choice to offer another fix term or continue on a periodic tenancy.

Fix term tenancies are great for managing vacancies and gives you more control.

As on periodic tenancy, the tenant just needs to give you 21 days’ notice. This gives security that for a certain period of time your property is rented.

Over the years, I have found fixed term tenancies to be a great tool to keep occupancy high; however there are a few tricks you will need to know.

Fix Term – Advantage: locked in income. Tip for tenancies fixed longer than one year: make sure you put a clause that you have the right to review rent yearly on the anniversary date and adjust the rent to market value.

See RTA section 24 Rent Increases (g) (i) and (ii) for more information.

Another great advantage in a fixed tenancy is you can manage the property from not been advertised in the winter months when rental enquiry levels are generally slower.

Go to our newsletter article “Fixed Term Tenancies” for more information on pros & cons of fixed term versus periodic tenancy.

At All Ways Property over 90% of All Ways Property tenancies are on fixed Term, which is ensuring cash flow planning for our Owners.

Market Rent

From my experience, most private landlords are reluctant to put up their tenants rent. Their argument is, they want to look after their tenants and if they put up the rent the tenant might leave. Or they are simply not up to date with what the market is doing.

Now $10.00 below market rent is neither here nor there, but when rent is $50 to $60 below market rent, this can add up to a significant amount of money over time. Multiply that by fifty weeks and it will be between $2,500 & $3,000.00 a year in rent loss.

Now if a landlord kept up this strategy over ten years, their loss of return would be $30,000.
Which I am sure you agree is a fair hunk of cash.

Insurance rates have almost doubled; rates go up every year and it all starts to add up.

If a landlord has done the repairs in a timely manner, made sure the property was well presented and it was in a clean and tidy state before the tenant moves. Then did their homework on what the market rent was and started a tenant at this rate, and then put up the rent $10.00 increments bi-annually or annually (depending what the market was doing at the time of the review), they would get a far better result!

Market rent will vary depending on the location of your property; location includes town, suburb and street. Sounds all a bit too involved, and then you should use the services of a good property manager. You can check us out here www.allwaysproperty.co.nz

 

 

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All Ways Property Management

All Ways Property Management is a company founded by Richard and Maxine Gardner in April 2009. Maxine and Richard are based in Pahiatua, and decided to make the services that they were using to manage and grow their own investment portfolio available to other investors in both the Manawatu and Tararua regions. Find Richard on Google+