The following information was correct at the time of writing; however it’s an ever-evolving industry so we do recommend doing your own research.
1. Key selling points of a rental property
An Auckland Property Manager doing a rental property valuation for you will do a market research of properties in your area and weigh up the pros and cons of each property. This will help identify key selling points of your home.
The most common selling points of rental properties are:
- Newly renovated
- Secure car parking
- New appliances
- New or modern Kitchen
- Cooling and Heating systems like a heat pump
- Ventilation systems like HRV
- Security system that includes an alarm
Can you list the key selling points for your home?
2. Demand in your area
Visit trademe.co.nz and search for properties in your area that have the same number of bathrooms, the same number of bedrooms, etc. If there are only 2 properties available for rent in your area, you may have a better chance at renting your home out for top rent.
Three factors which demand levels depend on are:
- job growth (i.e. multiplying work opportunities in the area)
- elevated home prices driving people to rent instead
- lifestyle preferences (e.g. a preference for an urban lifestyle with proximity to amenities, green space, markets, and transport hubs)
3. Rental statistics for the area
In New Zealand, the Government collects rental data by each location. You can find this information here.
These figures offer a good insight into what sort of weekly rent you could fetch for your property.
You need to be careful not to price your property too high above the average rent in the area, or this could cause tenants to question why you have done this. If you think your property is worth more than the maximum average, you need to make sure you give valid reasons for this. For example, a heated swimming pool.
4. Experience in property management
Our Property Managers have had numerous years working in the Auckland area inspecting large numbers of properties and setting weekly rents for those properties. Property Managers will have a pretty good idea of what the maximum rent might be should you decide to sign up with them to market your property.
Remember Property Management companies have access to a large number of ‘Agent-Only’ websites to market your property on that you would not otherwise have access to.
5. Data
Property Management companies use Property Management software which allows them to print out reports that show them the average rent they have collected in a specific location over a certain period of time. This will also help them to value your property’s weekly rent more accurately.
6. Ensuring top rents are achieved
Every 12 months your Property Management company will undertake a rent review. Here we do a full rental appraisal report to gain knowledge of where current rents are in the current market. If it is evident your property is worth more, we will write to your tenants to advise them of a rent increase.
We will always discuss this rent increase with the tenant first to see if they are comfortable with this. If not, it may force them to move out, and if depending on the current market you may have difficulty replacing the tenant in a timely manner. Sometimes it is best to keep a good tenant, and only increase the rent by a smaller amount. Communication is our number one priority during this process.
7. Property Management – Level 4 Certificate
Check to see if your future Property Manager has the Level 4 Property Management Certificate.
The New Zealand Certificate in Residential Property Management (Level 4) gives Property Managers confidence to complete rental appraisals, manage tenancy disputes, marketing properties, and understanding industry legislation.
The modules covered are:
- Module 1 – Legal and Theoretical Knowledge
- Module 2 – Establishing Residential Tenancy Management
- Module 3 – Establishing a Residential Tenancy
- Module 4 – Maintaining Residential Tenancies
8. Tenant screening process
It is not about placing tenants into your home quickly; it is more about choosing the best tenant to live in your home long term.
Our Property Managers will screen tenants in a number of ways, including doing previous landlord checks, previous employer checks, current employer checks, credit checks, and tenancy tribunal checks.
You want respectful tenants, who are considerate and pay their rent on time.
9. Mediation
When your tenant misses rent payments, a 14 day Breach of Contract letter is sent out to the tenant, advising them they need to make payment on such and such a date or will need to go to mediation to sort the matter. If mediation is required there will be a face-to-face meeting or a telephone conference call with an official tenancy officer, tenant, and the Property Manager.
10. Protection from potential disputes at the Tenancy Tribunal
Worst case scenario, your Property Manager has to take the tenant to court. With a Property Manager, you will be protected from potential disputes at the Tenancy Tribunal. When problems with tenants arise, Property Managers will provide representation for landlords.
Property Managers are knowledgeable when it comes to what information needs to be gathered to present at a Tribunal hearing, and what questions to expect. In most cases, they also have some legal training, which enables them to represent landlords successfully in Tenancy Tribunal cases.
11. Free Rental Appraisal
Right now Clarke Group Property Management are offering homeowners free rental appraisals.
Make sure you clean the property and get it ready just as you would if you were selling it.
Then you have 3 options:
- We can come out to your property to view it in person
- You can do a video walk-through tour of your property
- You can email photos of the inside and outside of the property and email them to hello@cgpm.co.nz
Make sure you email us the key selling points, and if you have a rent indication from a neighbour, or what you are hoping to expect for it, you can list that info as well. As much info as possible will help us give you an accurate rental appraisal.
12. There are no obligations!
Clarke Group Property Management require a 30 days notice to cancel your agreement.
It’s time to make your decision!
If you are looking for an Auckland property valuation, you have come to the right place. Whether you are only just beginning as a landlord or have a lot of experience, you should not underestimate the benefits of using a professional Property Manager. Property management companies have access to data that your average landlord does not.
Years of training and successful experience in the rental property market means that CGPM Property Managers are particularly well-equipped to help you make the most out of your property financially. Use CGPM – the leader among property valuation Auckland companies – for all your property management needs. From online valuation of property services to full hands-on property management, give CGPM a try by getting your property valuation free now!
