7 Awesome Tips for Landlords to Make Your Rental a Success

Stepping into the role of a landlord can be both exciting and daunting. As you embark on this journey, it's important to arm yourself with knowledge and tools that help make sure your rental venture is a success.

This article provides essential tips tailored specifically for landlords, covering everything from legal obligations and tenant screening to financial management and property maintenance. Whether you're considering managing your property yourself or hiring a professional property manager, these tips will help you navigate the complexities of the rental market with confidence.

When you’re ready, you can also reach out to Rent Square Property Management directly with all your questions at info@rentsquare.co.nz.

1. Understand Your Legal Responsibilities

As a landlord, one of the most important steps you can take is to thoroughly understand your legal responsibilities. The Residential Tenancies Act 1986 has its own set of laws and regulations to govern rental properties. These can cover a range of issues including tenancy agreements, body corporate rules, bonds, rules when advertising the property, rent increases, quiet enjoyment, and landlord's responsibilities.

Why It Matters

Knowing these laws not only helps you operate within the boundaries of the law but also protects you from potential legal disputes. For instance, failure to adhere to proper eviction processes or mishandling a tenant's bond can lead to costly legal battles and damage your reputation as a landlord.

Steps to Take

• Stay Updated: Laws and regulations can change, so make it a practice to stay informed about any updates or reforms in housing laws that affect your rental property.

Pro Tip: Consider partnering with a property manager like Rent Square Property Management, which stays up to date with changing laws and handles everything for you. From tenant screening and rent collection to maintenance and compliance, we make property management hassle-free - so you can enjoy the rewards of your investment without the stress.

2. Create a Comprehensive Rental Agreement

Drafting a robust rental agreement is key to establishing a clear, legal relationship with your tenants. This document not only defines the rights and responsibilities of both parties but also serves as your primary protection against possible disputes and misunderstandings. A well-crafted lease agreement sets out the terms of the tenancy, guaranteeing that both landlord and tenant know exactly what is expected of them.

Why It Matters

A detailed rental agreement helps prevent potential conflicts by outlining terms regarding payments, property use, maintenance duties, and more. It helps you be sure that tenants understand their obligations and the consequences of non-compliance, such as late fees or grounds for eviction.

Steps to Take

• Include Key Elements: Make sure to include key components such as lease duration, rent amount, bond information, pet policies, and maintenance responsibilities. Specify rules about late payments, property modifications, and guest allowances.

• Customize to Your Property: Tailor your agreement to address specific details of your property. For instance, if you have a no-pets policy or specific quiet hours due to community rules, these should be clearly stated.

Pro Tip: Making use of a professional property manager like Rent Square Property Management can help you avoid issues.

3. Screen Tenants Thoroughly

Effective tenant screening is a cornerstone of successful property management. It helps you select tenants who are likely to pay their rent on time, take care of your property, and abide by the terms of their lease agreement. Thorough tenant screening reduces the risk of costly evictions and tenant turnover.

Why It Matters

Choosing the right tenant can mean the difference between a smooth tenancy and a problematic one. Tenants with a history of eviction, poor credit, or a criminal background might pose a higher risk to your property and your income.

Steps to Take

• Credit Check: Assess the tenant’s credit score to gauge financial stability and responsibility. Look for any major red flags like bankruptcies or significant debt that could impact their ability to pay rent.

• Background Check: Conduct a criminal background check to determine that there are no serious criminal records that could pose a risk to property safety or other tenants.

• Previous Rental History: Contact previous landlords to inquire about the tenant’s behavior, payment history, and reasons for leaving their last rental. This can provide insights into their reliability and conduct as a tenant.

• Employment and Income Verification: Verify that the tenant has a stable job and sufficient income to afford the rent. Typically, it’s recommended that a tenant's monthly income be at least three times the rent.

Pro Tip

Partner with Rent Square Property Management as your exclusive property managers. We also do comprehensive tenant vetting checks – including Credit Checks, Employer checks, Tenancy Tribunal checks, Previous Landlords checks, Passport Checks, Court Fines, and much more.

4. Set a Competitive Rent Price

Setting the right rent price helps to attract and retain good tenants while keeping your investment profitable. A competitive rent price aligns with the local market rates and reflects the value of the property's location, size, and amenities.

Why It Matters

Pricing your rental appropriately reduces vacancy periods, which can be costly. Conversely, setting the rent too high may limit your pool of potential tenants. An ideal rent price strikes a balance, making your property attractive to tenants and maintaining your cash flow.

Steps to Take

• Market Research: Start by researching similar properties in your area. Look at their rent prices, and note their location, condition, and features.

• Evaluate Property Features: Consider what makes your property stand out. Does it have modern appliances, a great view, or access to amenities like a pool or gym? Adjust your pricing based on these features.

• Adjust for Seasonal Trends: Be aware of the rental demand fluctuations throughout the year. For example, prices might be higher during the summer months in areas popular with families looking to settle before a new school year.

Pro Tip

Get in touch for a free professional Rental Appraisal to get an expert assessment of your property's value. Let's start the conversation about your options and needs. Rent Square Property Management has access to industry data that helps us calculate the ‘sweet spot’ for rent — the highest rent the market will bear without causing an extended vacancy time. With less experience and data, a private landlord may find it much harder to calculate market rent.

5. Inspect the Property Regularly

Regular inspections are vital for maintaining the condition of your rental property and addressing any issues before they become major problems. Routine checks can help keep your property in compliance with local housing codes and standards, while also demonstrating to tenants that you are committed to keeping the property in top shape.

Why It Matters

Conducting regular inspections helps to identify maintenance needs early, which can save money and prevent damage from worsening. It also reassures tenants that you are attentive and proactive about property conditions, which can enhance tenant satisfaction and retention.

Steps to Take

• Schedule Inspections: Establish a regular schedule for inspecting the property, such as 3-monthly. Inform tenants in advance in accordance with the laws, typically requiring at least 24 hours' notice.

• Check Key Areas: Focus on critical areas such as the roof, plumbing, heating and cooling systems, electrical systems, and appliances. Look for signs of wear and tear or potential safety hazards. This is also a good time to record whether the tenants are taking care of the property.

• Document Everything: Keep detailed records of inspection results, including dates, findings, and any actions taken. This documentation can be vital in the event of disputes or insurance claims.

Pro Tip

Using Rent Square Property Management makes property inspections effortless and seamless. We conduct regular, high-standard inspections to protect your investment, ensuring any necessary repairs and maintenance are handled promptly. As the owner, you’ll receive a comprehensive report after every inspection, giving you full visibility and peace of mind.

6. Advertise Your Property Effectively

Effective advertising is key to attract quality tenants and minimize vacancy periods. A strategic approach to marketing your property can significantly enhance its visibility and appeal to potential renters.

Why It Matters

Well-executed advertising enables your rental property to reach a broad audience and attract a pool of prospective tenants. This not only helps you find the right tenant more quickly but also keeps your rental income steady.

Steps to Take

• Use High-Quality Visuals: Invest in professional photography to showcase your property’s best features. High-quality images make a strong first impression and can significantly boost interest in your listing.

• Write Compelling Descriptions: Craft detailed and appealing descriptions of your property, highlighting key amenities and advantages, such as its location, nearby facilities, and any included appliances or services.

• Leverage Multiple Platforms: Post your listing on various online rental platforms, social media sites, and even local community boards to maximise exposure.

Pro Tip

Rent Square Property Management advertise and promote rental properties on multiple websites, including:

• Trademe

• Real Estate

• Homes

• One Roof, and

• Rent Square

 We are using quality photos and descriptions - all for a fraction of the normal cost. As a property manager we have extensive experience on what work best and access to specialised online rental platforms for better reach.

7. Consider Hiring a Property Management Company

For many landlords, managing a rental property can quickly become overwhelming. Hiring a property management company can alleviate much of this burden by handling day-to-day management tasks, tenant relations, and unexpected issues professionally.

Why It Matters

Property management companies bring experience and expertise to the table, giving you peace of mind that your property is managed efficiently and in compliance with all relevant laws and regulations. This can be particularly valuable if you have limited time to dedicate to property management or if you own property in a different location from where you reside.

Steps to Take

• Evaluate Your Needs: Determine which aspects of property management you need help with—be it tenant screening, maintenance, rent collection, or all of the above.

• Research Potential Companies: Look for companies with good reputations and solid references. Check online reviews and speak with other landlords who use their services.

• Compare Services and Fees: Understand what services are included in the management fee and what might incur additional charges. Make sure the fees are reasonable and within your budget.

Pro Tip

When selecting a property management company, consider not only the cost but also the value they provide. A good property management company can increase tenant satisfaction, reduce tenant turnover, and ultimately enhance the profitability of your investment.

Hiring a property management company can be a strategic decision that allows you to enjoy the benefits of owning rental property without the daily hassles of direct management. Use our free search tool to connect with the Rent Square Property Management services page to discover more how we can help you with your rental property.