And Keeping Your Tenant Happy Too!
In a recent article, I wrote how the rental market in New Zealand has changed, and that we can expect more people to be renting than ever before.
Tenants aren’t immune to these changes in the rental market. As the costs of everything else increases, so does the direct and indirect cost of rent.
Over the last year, the cost of renting has increased by a staggering 10%, and with interest rates at an all-time high, it is only going to get worse. We would like to say that it will get better, but probably not any time soon.
If you are renting out your property, you need to consider the effect that any rent increase will have on your investment property. In fact, if you do not ensure that you are able to absorb these increases, then you may well end up losing money rather than making it.
So, what should you do? There are a few things you can do, and I will go through some of them here.
Firstly, you need to make sure you are getting the right level of rent for your property.
Gerhard Thomas, General Manager at Benchmark Property Management states “Getting the right level of rent is vital. Too low would be to the detriment of the property owner as after-all it is an investment. Too high and the property runs the risk of staying untenanted therefore not earning any returns for the owner.”
At Benchmark Property Management, we look at various factors and platforms to determine the right rent for your property. This will vary depending on the type of property that you own, but it is important that you get it right.
You need to ensure that you keep on top of other expenses that you incur as well. The biggest expense, and one that new property investors can overlook, is the maintenance of the property.
Make sure you investigate all these areas, as the cheapest and most cost-effective time to fix an issue is when it happens.
Benchmark Property Management have financial options available to our owners for any unexpected maintenance costs.Contact us today on 09 303 3731 or [email protected]