An investment in property should be regarded as a long-term investment potentially delivering constant income plus increasing capital.
You will receive a monthly income from the rent and your mortgage repayments should reduce the principal which increases the equity in the property.
You should make sure you are working with the best rental property management company so you get the best returns from your investment.
This article will detail what a high-quality rental property management company will do for you and your valuable investment property.
We will outline why Rent Square are the proven, trusted, innovative, and only company you should have as your property management team from the start.
The benefits of high-quality rental property management
What will your rental property management team do for you?
We’ll step through the property management essentials. Working with the best agency you can find should make this stress-free for you as the property owner.
Setting the rent level
It’s important the rent is set at the optimum level to both ensure you get the best return from your investment and you get top-quality tenants.
If the proposed rent is set too high, it may take longer to find a tenant willing to pay and your property may be vacant for longer than necessary - that way losing you money.
A professional property management team will know what the market rate is for your property, depending on the style of property and the location. They may even suggest improvements or changes for the property to increase the amount of potential rental income. Get in touch today for a full Rental Appraisal.
Screening tenants
An experienced property management tea
m will have done this many times before. They will meet the tenant face to face, normally at the property viewing. A conversation with a person can often tell you instantly if they are the sort of reliable, trustworthy person you want as a tenant.
There will be a formal application package and you should expect the tenant to be checked out thoroughly before they are entrusted with the care of your valuable property.
At Rent Square, we follow up on the application, checking personal and employment references plus any previous tenancies. We also require a full check and make sure there are no outstanding issues by checking a national tenancy database.
Rent Collection
Ideally, rent will be paid by direct debit. This will g
enerate the transfer of funds automatically each fortnightly or monthly pay cycle and the tenant won’t need to remember to pay each time.
The lease agreement should identify the amount of rent due and the pay cycle. The agreement should make clear that rent arrears are not tolerated and are regarded as a breach of contract.
Payment and statements
You should receive regular payments and accurate financial records from your rental property management company.
At Rent Square, we take care of regular bills, including strata levies where appropriate, water and council rates plus any costs incurred for repairs or maintenance. We’ll issue you with regular statements, via email, showing
bank transfers of your rent, minus any expenses for the month.
At the end of the financial year, we’ll provide a statement with a summary of your income and costs for the year. You can pass this to your accountant to compile your annual accounts and complete your income tax return.
Maintenance of the property
Regular inspections of your property are essential to check how the tenants are treating the property and identify any repairs needed. Sometimes, tenants are too busy to get in touch with us or don’t notice that repairs are needed.
If the property needs a cleanup or, maybe some weeding or tidying up in the garden, a follow-up visit will confirm the tenants have taken care of the issue.
Repairs and emergencies
The tenant must have a way of requesting repairs and especially urgent repairs, which may be needed outside of normal working hours. Your property managers will have a process that the tenant should follow to notify them that repairs are needed. They should provide an emergency contact for those out-of-hours urgent requests.
Tenant relationship skills
It’s important that your tenant is treated with the same respect you expect for yourself. A happy tenant is more likely to extend the lease and take better care of their rental home.
You should expect your property management team to be professional and friendly to you and your tenant. Emails and ‘phone calls should be answered and messages replied to.
Tenant Issues
Your property manager should have highly-dev
eloped ‘people skills’ after dealing with multiple tenants, and owners, too. They will know a happy tenant is a great tenant and will do their best to treat the tenant in a professional and friendly manner.
Every so often, despite thorough reference checking though, a problem tenant may slip through the net and into your property. They may not pay the rent on time or they might not have the respect for the property expected.
In this case, your property management team should have zero tolerance for behaviour that is breaking the lease agreement and may cause loss of earnings for you, or damage to your property. You should expect them to take the tenant to a tribunal and even evict them.
Increase the rent/upgrade the property
At Rent Square, we keep you informed at all times. We will contact you a few weeks before the current lease on your property expires. We will confirm whether the tenant will be renewing the lease or we will find a new tenant. We’ll also advise you of the market rent for your property, to be applied during the period of the next lease.
End of lease/Change of tenant
If your property manager has established a relationship with your tenant, they should be happy to notify you when they decide they are going to move out of the property. They should have a contact, most likely an email, to contact to advise of their moving plans.
This process will give your property manager the opportunity to arrange for potential new tenants to view the property before the current lease ends, reducing the length of time the property is vacant.
Visit www.rentsquare.co.nz today!
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