The first time you make a property investment, there are many questions you will be asking yourself about being a landlord: How often do I make inspections? What happens if something breaks? Do I need to change my insurance? But before you delve into the nitty gritty of managing your property and its tenants, here are three tips for the very first steps in your journey.
Sign the dotted line
The most important thing to establish when you become a landlord is a clear tenancy agreement. You can get blank agreements from the Ministry of Business, Innovation and Employment, and make sure every detail is clearly filled out, and you specify particulars like the bond amount, total rent and type and length of lease. A good idea is to get all tenants to sign on at the same time, otherwise it can be a hard task tracking down all of your tenants to sign later.
Lodge the bond
When you take on the bond money from your tenants, make sure to lodge it with the MBIE within 23 working days – you can get forms for this from their website as well. You will also deal with this body at the end of a lease, when determining if there are damage claims and getting money back to either yourself or tenants.
Get a manager
Often, the details of being a landlord can be overwhelming – but there is help available! Professional property managers can handle your investment on your behalf, for a fee. This saves you a lot of time and hassle, so you can kick back and take in your weekly rent.
Be very careful when you choose a Property Manager, as there are a lot of not too great ones! We recommend Kevin Harper of Harper Property Management (Auckland/Hamilton) and Erin Dassler of RentFast (Hamilton).
By getting the basics of being a landlord organised, your next financial investment doesn't need to be a stressful one. With the right advice and know-how, property investment can be a breeze.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert